Zircon Ltd., a GST registrant, buys $4,500 worth of Office Supplies for their own use.The purchase is subject to 8% PST and 5% GST.What amount will be debited to the Office Supplies account as a result of this transaction?

Question

Quizplus · Accepted Answer

The amount of PST and GST paid on the purchase of Office Supplies is calculated as follows:

PST = 8% of $4,500 = $360
GST = 5% of ($4,500 + $360) = $235.80

Therefore, the total amount paid for the purchase including PST and GST is $4,500 + $360 + $235.80 = $4,860. Thus, the amount debited to the Office Supplies account will also be $4,860.