Payment of $110 to Tas Media for advertising is a business expense. (You received a valid tax invoice from Tas Media.)
n The full amount is recorded under ‘Non-capital’ in the GST section.
n The claimable GST amount is one-eleventh of $110, so $10 is recorded under ‘Claimable GST’.
n The net amount (ie, excluding GST) is recorded under ‘Advertising’ in the payments section.
D

Payment of $330 for fuel. This is a part-business expense as half the bill was for petrol for a private car, which is a private expense.
n The business portion of the expense ($165) is recorded under ‘Non-capital’ in the GST section.
n The GST amount is one-eleventh of the $165 business portion, so $15 is recorded under ‘Claimable GST’.
n The net business expense ($150) is recorded under ‘Motor vehicle’ in the payments section.
n The private percentage (50%) is recorded and $165 is recorded under ‘Drawings’.
n A note is added under ‘Comments’ to show why the expense has not been claimed in full.
E
Payment of $550 to Bill’s Painting is a business expense.
n The full amount is recorded under ‘Non-capital’ in the GST section.
n The GST amount is one-eleventh of $550, so $50 is recorded under ‘Claimable GST’.
n The net business expense ($500) is recorded under ‘Repairs and maintenance’ in the payments section.
n A note is added under ‘Comments’ to show the purpose of this irregular expense.
G
This drawing of $600 cash is for personal or non-business reasons and is a private expense.
n The $600 taken from the till is recorded under ‘Drawings’.
n There is no GST claimable on private expenses. (The $600 cash drawings will need to be added back to the recorded daily takings – see the cash receipts book.)
n A note is added under ‘Comments’ to show this is not a business expense.
H
This payment was to top up the petty cash account, reimbursing it for expenses paid from petty cash. Some purchases had no GST.
n The total figure is recorded under ‘Non-capital’ in the GST section.
n The actual GST paid ($20) is recorded under ‘Claimable GST’.
n The net amount of $230 can be recorded under any relevant column in the payments section. As none of the petty cash purchases were for regular, recurring expense categories, the net amount is recorded under ‘Sundries’.
I
This fruit and vegetable purchase from Dave’s Fruit & Veg is GST-free so there is no GST on the invoice.
n The full amount of $600 is recorded under ‘Non-capital’ in the GST section.
n The same amount is recorded under the relevant column in the payments section (there is no GST to claim or subtract from the full price).
K
Wages paid.
n Wages are not recorded in the ‘Total purchases’ section.
n The net wages payment of $695 is recorded under the relevant column in the payments section.
n There is no GST on wages paid.
M

Purchase of delivery van is a capital purchase. Capital purchases typically involve items such as equipment or machinery that is intended to be used over several years, rather than everyday expense items.
n The full price of $16,500 (comprising a cheque payment of $11,000 plus the $5,500 trade-in) is recorded under ‘Capital’ in the ‘Total purchases’ section.
n As the vehicle is used purely for business, the full GST amount of $1,500 is recorded under ‘Claimable GST’.
n The net purchase price of $15,000 is recorded under ‘Capital’ in the payments section.
n A note is added under ‘Comments’ to show details of the transaction.
N
This drawing of $195 is for private living expenses for the business owner and is not a business expense.
n The $195 is recorded under ‘Drawings’.
n There is no GST claimable.
n A note is added under ‘Comments’ to show this is not a business expense.
O
Superannuation paid.
n Super is not recorded in the ‘Total purchases’ section.
n The employer contribution of $81.00 is recorded under the relevant column in the payments section.
n There is no GST on employer contributions.
Additional entry – bank charges of $15.
An extra transaction has been included in the cash payments book for bank charges. This charge was shown on the My Business bank statement and needs to be recorded in the cash book (for information about how to do a bank reconciliation – see page 32).
n The fee of $15 is recorded in the ‘Non-capital’ column of the GST section.
n The same amount is recorded under ‘Govt and bank fees’ in the payments section.
n There is no GST on the bank charges, so no GST is claimable.