Reference no: EM132612962

Gym Stores purchases and sells dumb bells and has adopted the invoice basis to account for GST and Category A of the two-monthly taxable period.

The following is a summary of invoiced transactions undertaken by Gym Stores for taxable period ending 31 March 2019:

Sales in New Zealand (GST inclusive)                                                          $69,000

Export Sales (GST exclusive)                                                                      $34,500

Interest received from bank                                                                         $2,300

Rental income from residential property                                                           $2,760

Purchases and expenses in relation to sales in New Zealand (GST exclusive)           $25,000

Purchases and expenses in relation to export sales (GST exclusive)                      $15,000

Rental expenses on sales office (GST exclusive)                                                  $7,000

Problem 1: The total amount of purchases and expenses to be included in the Goods and Services Tax Return (Form GST101A) is:

Select one:

Option a. $53,000

Option b. $54,050

Option c. $40,000

Option d. $47,000