Reference no: EM132666932

Assume the business in this scenario has a current GST turnover of less than $20 million pa.
The ATO allows Debit and Credit errors on lodged BAS to be corrected on later activity statements but there is a time limit. Complete the table below with the correct time limit.

You are given some unrelated examples of errors/ omissions that were made on prior BAS reports. You need to advise on whether they require an increasing adjustment or decreasing adjustment when lodging the next BAS.

Select the appropriate solution from the following options for each of the errors/omissions listed:

• Increasing Adjustment (Debit error)
• Decreasing Adjustment (Credit error)

Problem 1. What is the solution if you You have failed to claim input tax credits on an invoice of $4,400 in the last quarterly BAS?

Problem 2. What is the solution if a purchase of $8,500 (including GST) included in the previous BAS has been cancelled ?

Problem 3. What is the solution if in the previous BAS, a journal entry was made to purchase a motor vehicle by debiting Motor Vehicle ($9,000), debiting GST Paid ($900) and crediting Cash at Bank ($9,900).

In reviewing the paperwork, it was realized that the vehicle was purchased for private use and not for the business?

Problem 4. What is the solution if A taxable sale of $3,500 from the last quarterly BAS has now been cancelled?