i am doing an accounting assignment and need a little help.
The part of the question i need help with is:
"The cost of the inventory sold was $4200 (net of GST)"
Does this mean that the GST is already included in the $4200?
3 Answers
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It means that the $4200 did not include GST.
Including GST in the cost of inventory sold would be misleading and would overstate the cost by 10% as the GST is recoverable from the government.
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Net Of Gst
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No, I would read that as meaning that the GST is not included in the $4200.