Katerina's Boutique is a business registered for GST and it lodges its Business Activity Statement (BAS) at the end of each quarter. For the quarter ending June 30, 2022, Katerina's Boutique recorded the following transactions: Transactions The owners withdrew cash from the business bank account $ 39,660 185,889 66,000 95,150 Sold inventories to customers. 80% was paid in cash with the remainder on credit. Paid an amount to suppliers for inventories purchased in the previous month Purchased equipment on credit from Generic Kettle Ltd Total gross salary for employees before PAYG deduction Total net salary paid to employees after PAYG deduction Paid for various operating expenses (excluding wages) Paid off a loan amount owed to Rocket Bank. 78,350 58,850 54,340 107,800 Paid Generic Kettle Ltd the amount owed on equipment. Received an amount due from credit customers for services provided on 1 May 2021 95,150 104,280 Additional information: The above amounts include GST where appropriate. The GST Collected account commenced April 1 with a $0.00 balance. The GST Paid account commenced April 1 with a $0.00 balance. The PAYG Withheld account commenced April 1 $15,600 balance. Required: Based on the above information, calculate the total GST Paid, GST Collected, PAYG Withheld, the Net Amount Payable/Refundable, and clearly indicate if the Net Amount is payable to the ATO or refundable to the business for the quarter ending June 2022. Answer to Question 4 here: GST Paid = GST Collected PAYG Withheld = Net Amount Payable/Refundable (please indicate if this amount is refundable or navabla)
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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