Question 2 – DMG Smiles Dental Supplies The information has been summarised for DMG Smiles Dental Supplies during the Se

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Question 2 – DMG Smiles Dental Supplies
The information has been summarised for DMG Smiles DentalSupplies during the September 20X5 quarter in Appendix ‘Case Study- DMG Smiles Dental Supplies’.
Financial Information for September 20X5quarter.
Sales
Total cash sales (Incl GST)
70,000
G8
Other GST-free sales
19,140
G3
Purchases (Incl GST)
Furniture and Fittings (Incl GST)
4,180
G10
Other Capital Purchases (Incl GST)
45,650
G10
Non-Capital Purchases (Incl GST)
5,260
G11
GST-Free Non-Capital
6,534
G11
Cash Payments Book
Wages (net)
22,484
Other Expenses (Incl GST)
880
G11
Stationery and supplies (Incl GST)
2,156
G11
General Journal (Incl GST)
Bad debts
2,090
G18
Other Information:
PAYG withheld from wages
6,900
W2
Commissioner's rate
4.20%
Information for December 20X5 quarter.
DMG Smiles Dental Supplies had a PAYG Instalment amount of$3,477 in the September 20X5 quarter based on sales of $82,776. Itis now end of December and the sales for this quarter have beensignificantly low due to a major change in government legislationin dental supplies industry. DMG Smiles CEO Mr. Dominic Villapredicts that current situation will continue throughout thecurrent year and the company is due to incur the biggest loss inits history. Hence Mr. Dominic has asked to vary theinstalment amount to zero for the December 20X5 quarter BAS. Otherfigures for the quarter have been calculated below.
G1 Total Sales
5,780
G2 Other GST-free sales
1,225
G8 Sales including GST
4,555
G9 GST on Sales (G8 ÷ 11)
414
G10 Capital purchases
3,305
G11 Non-capital purchases
19,700
G19 Total purchases subject to GST after adjustments
23,005
G20 GST on purchases (G19 ÷ 11)
2,091
W1 Total salary & wages
14,680
4 PAYG tax withheld
3,760