The profit and loss statement for the period ending 30 June 2011 shows total revenue of $550,000 and total expenses of $522,353, resulting in a net loss of $301,353. Revenue was generated from sales of bicycles and accessories, coaching, repair shop services, and other income from activities like cycling tours. Expenses included cost of goods sold, operating expenses such as salaries, rent, utilities, and set-up costs including fit-out of the workshop, office, and display areas. Some of the set-up costs like tiles installed in 2010 may not be deductible as they relate to GST obligations from when the business commenced in September 2010.

1. Profit & Loss Statement 30 Jun 2011
REVENUE
Sales
Sales of bicycle and accessories 340,000
Coaching income 160,000
Repair shop income 40,000
Other income (eg. Cycling tours) 10,000
Sales -
Total Revenue 550,000
Freight Collected
Total Revenue 550,000
DIRECT COST
Cost of Goods Sold 221,000
0
0
0
Total Cost of Good Solds 0
Total Direct Costs 221,000
GROSS PROFIT
OPERATING EXPENSES
Accountancy fees 3,500
Advertising 7,500
Bank fees 1,000
Computer expenses 3,500
Credit card fees 1,200
Depreciation expense ** 5,000
Electricity 8,500
Entertainment 6,000
Insurance 5,000
Interest expense 15,833
Legal expenses 2,000
Printing, stationery and postage 7,500
Rent ($4,000 per month) 5% increase 40,000
p.a.
Repairs and Maintenance 6,000
Salaries and wages – Directors 50,000
Salaries and wages – Other staff 116,000
Staff amenities (tea, coffee, biscuits) 1,000
Superannuation (@ 9% of total salaries) 15,000
Telephone and facsimile charges 3,000
Other costs 20,000
Bank Charges 0
Freight Paid 0
Set-Up Cost
Opening party 5,500

2. Fit-out 83,600
Workshop 7,040
Displaying stock 28,160
Indoor windtraining sessions 21,120
Office 14,080
Install tiles 13,200
Cash registers 9,680
Computers 27,060
Photocopying machine 4,180
Facsimile machine 880
Timber bookcases 6,820
Television sets 9,680
Fluorescent lighting system 20,240
Carpets 28,820
MYOB Accounting Plus Version 18 and other 8,360
retail-based computer software
Total Set-Up Cost 204,820
Total Motor Vehicle Expenses 0
Office Supplies 0
Rent 0
Telephone and internet 0
Total Expenses
NET PROFIT

3. Under ITAA 1997 S20-30- "upgrading assets to meet GST obligations " are deductible BUT we should consider what is
SYSTEM (INDIRECT TAX AND CONSEQUENTIAL AMENDMENTS) ACT (NO. 2) 1999 - SCHEDULE 5 - Income tax deductions
&(e), we should consider pre-GST annual turnover for income year.
Our fit-out has been installed tiles ($13,200) in 2010 ( Commencement date of the business will be 1 September 201
is post 1 July 2000 so this item is undeductible.

4. 221,000

5. 522,353
-301,353

6. sider what is "GST obligation". The above A NEW TAX
ax deductions for GST-related expenditure : S25-80(d)
eptember 2010.), under S25-80 (d), this upgraded plant

7. Fit-out GST Exclusive GST
Workshop 10% 6,400 10%
Displaying stock 40% 25,600 10%
Indoor windtraining sessions 30% 19,200 10%
Office 20% 12,800 10%
Instal tiles 12,000 10%
64000.00 76,000

8. GST Inclusive
7,040
28,160
21,120
14,080
13,200
83,600