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Margin Scheme Journal Entries

Mercland
2 Posts
Cover User
Australia

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
1,082 Posts
Ultimate Partner
Australia

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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