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A. Explain why General Consumption Tax (GCT) is considered a Value Added Tax.

A. Explain why General Consumption Tax (GCT) is considered a Value Added Tax.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 3 A. Explain why General Consumption Tax (GCT) is considered a Value Added Tax. B. Bread and Basket Enterprise sells a mixture of supplies at standard rate, exempt and zero rate. The business made the following transactions during the month of June 2021: TRANSACTIONS Purchased computer supplies inclusive of GCT Sales inclusive of GCT Sales included some exempt items Sales included some zero-rated items Bought staff protective gears inclusive of GCT Sales returns exclusive of GCT totalled The business bought a small delivery truck excluding GCT Purchases of standard-rated products for resale (inclusive of GCT) Bad debts written off exclusive of GCT AMOUNTS $ 50,000 14,750,000 130,100 300,000 100,000 30,000 2,900,000 9,858,000 40,500 Required: i. Using the current rates, prepare the account showing the liability or refund for the month of June 2021. ii. Provide the notes for calculations of GCT.
Transcribed Image Text:Question 3 A. Explain why General Consumption Tax (GCT) is considered a Value Added Tax. B. Bread and Basket Enterprise sells a mixture of supplies at standard rate, exempt and zero rate. The business made the following transactions during the month of June 2021: TRANSACTIONS Purchased computer supplies inclusive of GCT Sales inclusive of GCT Sales included some exempt items Sales included some zero-rated items Bought staff protective gears inclusive of GCT Sales returns exclusive of GCT totalled The business bought a small delivery truck excluding GCT Purchases of standard-rated products for resale (inclusive of GCT) Bad debts written off exclusive of GCT AMOUNTS $ 50,000 14,750,000 130,100 300,000 100,000 30,000 2,900,000 9,858,000 40,500 Required: i. Using the current rates, prepare the account showing the liability or refund for the month of June 2021. ii. Provide the notes for calculations of GCT.
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