Home – New Forums Money matters Sale of Business assets Reply To: Sale of Business assets

Trevor Monaghan
  • Total posts: 84
merryfield, post: 82702 wrote:
Hi all… I have just sold an item of business equipment for $2400.

I originally purchased the item for around $4000 a year ago and claimed back the GST at the time.

Just need to know how I record the sale in my business books, as well as how to pay the $218 GST from the sale back to the tax office.

We do our activity statement online every quarter.

Appreciate any advice.

Assuming you are registered for GST, give an invoice to the purchaser for the full amount that they will pay you. Then 1/11th of the full amount will be the amount of GST to give the ATO. Depending on how you do your bookkeeping, put this through as a sale with GST, and allocate it to ‘sale of assets’ if you can choose. If you can’t choose just put it through like any other sale but tell your accountant at the end of the year that the sales include this particular transaction.

Paying the GST to the ATO is as simple as making sure the $218 is included in your GST collected total in the quarter you receive the money from the buyer assuming you are on a cash basis for GST.

If you need further clarification just post a reply here.

Trevor Monaghan
Chartered Accountant
Climax Business Strategies