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I would like some guidance regarding the following please. Our company participated in a fun run and included an excursion. The clients paid the money for their entry fees/excursion into the business bank account and the business paid the suppliers for the entry fees/excursion. The entry fees have no gst. The excursion invoices includes gst.
The income from this event was slightly higher than the cost.
I am wondering what to allocate to FRE and GST. Say I have gst fre expenses of $4000 (race entry fees) and expenses including gst of $5000 (excursion). I collected $10000. Do I allocate $4000 of the income FRE and $5000 GST. Then there is the extra $1000 income - does that get allocated to GST??
Thankyou for your help
Solved! Go to Solution.
If your business is registered for GST then I would allocate all the income to a income account with GST.
The costs would then be entered to Cost of Sales or Expenses accounts one for the Entry Fees GST FREE and one for the Excursion GST.