Question 3A. 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 zerorate. The business made the following transactions during the month of June 2021:TRANSACTIONSPurchased computer supplies inclusive of GCTSales inclusive of GCTSales included some exempt itemsSales included some zero-rated itemsBought staff protective gears inclusive of GCTSales returns exclusive of GCT totalledThe business bought a small delivery truck excluding GCTPurchases of standard-rated products for resale (inclusive of GCT)Bad debts written off exclusive of GCTAMOUNTS$50,00014,750,000130,100300,000100,00030,0002,900,0009,858,00040,500Required:i. Using the current rates, prepare the account showing the liability or refund for the monthof June 2021.ii. Provide the notes for calculations of GCT.

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

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

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