2 years ago
Discount given to owner - Expenses or Owner's Equity?
Hi, how do we account for meals eaten for free by restaurant owner? Are they treated as discount given (expenses) or record them as drawings in owner's equity? And how about the GST? Many thanks
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- 2 years ago
My accountant provided a solution.
Enter the amount in the bonus section (the amount is exclusive of SG payable.)
Then enter the same amount in Salary Sacrifice - (a deduction), again this amount is exclusive of SG.
The total SG payable which also included the usual SG payble on normal earnings was correct.