John Martins is a department store in Adelaide. It’s menswear department stock of suits, ties and shirts at the beginning of the income year was valued at $1.1m (Including GST) and they purchased further supplies for $2.2m (Including GST) during the year. Its stock at the end of the income year was valued at $550,000 (Including GST) and its sales revenue for the year was $11m (Including GST). How will John Martins treat its trading stock for income tax purposes, what amounts will be included as income and what amounts will be allowed as a deduction?
John Martins is a department store in Adelaide. It’s menswear department stock of suits, ties and shirts at the beginning of the income year was valued at $1.1m (Including GST) and they purchased further supplies for $2.2m (Including GST) during the year. Its stock at the end of the income year was valued at $550,000 (Including GST) and its sales revenue for the year was $11m (Including GST). How will John Martins treat its trading stock for income tax purposes, what amounts will be included as income and what amounts will be allowed as a deduction?
Chapter1: Financial Statements And Business Decisions
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John Martins is a department store in Adelaide. It’s menswear department stock of suits, ties and shirts at the beginning of the income year was valued at $1.1m (Including GST) and they purchased further supplies for $2.2m (Including GST) during the year. Its stock at the end of the income year was valued at $550,000 (Including GST) and its sales revenue for the year was $11m (Including GST).
How will John Martins treat its trading stock for income tax purposes, what amounts will be included as income and what amounts will be allowed as a deduction?
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