ACCT1000 Lecture Notes - Lecture 7: Perpetual Inventory, Car Dealership
23 Jan 2019
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Gst outlay (paid): you are outlaying (paying) gst, and the tax office will therefore provide you with a refund for the gst paid. Gst collection: you are collecting (receiving) gst, and you will therefore need to pass the gst collected to the tax. There are two ways to record your inventory. Detailed inventory system in which the cost of inventory is maintained. Records continuously show the inventory that should be on hand. Inventory system in wich detailed records are not maintained. Cost of sales is determined only at end of accounting period by a physical inventory account. Recording purchases of inventories in perpetual inventory system. Example (without gst): purchase of inventory on credit from pw audio supply. Example (with gst - inclusive): purchased 10 chairs for each (gst inclusive) on credit. A purchase return is the return of goods by the customer. The customer will receive a refund in the form of either creditor or cash.
