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Margin Scheme Journal Entries

Mercland
2 Posts
Cover User
Australia
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Margin Scheme Journal Entries

Hi there

Does anyone know how to put through the journal entries for the adjustment of GST for sales of properties under the margin scheme?

1 REPLY
Ultimate Partner Seattle
1,190 Posts
Ultimate Partner
Australia
Accepted Solution Solved Solution

Re: Margin Scheme Journal Entries

@Mercland,

 

Accounting for the Margin Scheme is complex and you should consult your Tax Accountant.

 

Lets give an example -

 

    The property (Property A) sells for $1,100,000

     The Sale Contract states that the Margin Scheme applies.

       The Sale Contract states that $40,000 GST has been charged.

 

I would have a Income Ledger - Sale of Property A which would have a balance of $1,060,000.

There would be a figure of $40,000 in GST Collected.

 

Do consult with your Tax Accountant.

 

Duncan

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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