Day 7: Some special rules for small business
Key terms and concepts
• Turnover: your gross income from all of your business activities before any deductions have been made.
• A business is a small business if its turnover is less than $2 million per year.
• An expense is something that is consumed or classified as expenditure on a asset costing less than $1000.
• A repair can only be an expense if it does not improve the asset.
So far we have classified our business transactions through our chart of accounts, recorded them in journals and summarised them into general ledger accounts. After proving the bank accounts using the bank reconciliation process we produced a trial balance and from there completed the BAS.
Our next challenge is to ...
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