7. Joshua Owen commenced business on 1 September, and had several special transactions during the month: Date Sept 01 Owen contributed the following to the business: Premises $85,000, Cash $4,000, Mortgage on Premises $30,000, and shop fittings $3,000. 09 Owen gave the business a Motor Vehicle valued at $5,000 to be used for delivering goods to customers. 11 Stock costing $80 plus $8 GST was taken by Owen's Children. 14 Surplus shelving, valued at $50 plus $5 GST, was taken by Owen for storing tools in his home garage. Transaction Required: General Journal entries to record these transactions.

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.