Adjustment Calculation

1.     Identify "qualifying supplies"

• supplies that have been made or received prior to 1 October 2010 which have not been paid, until after this date and have not been accounted for in a prior taxable period;
• any second-hand goods purchased prior to 1 October 2010, that have not been paid for.

2.    Organise qualifying supplies

• Seperation of creditors and debtors

3.    Calculate adjustment

• Adjustment = (Creditors - Debtors) / 51.75

EXAMPLE

Swinton Appliances account for GST on a payment (cash) basis.

They have creditors of $9,530.15 and debtors of $16,125.17 = $6,595.02cr

$6,595.02 / 51.75 = $127.44

As Swinton Appliances debtors are larger than their creditors their adjustment of $127.44 is a GST credit.

Click here for the GST rate change adjustment calculation sheet.