Exercise 4.1 Cash transaction a |Document |Receipt (Copy) |

b

|Transaction |Cash sale (of 2 top hats) |

c
|Account |Debit |Credit |
| |$ |$ |
|Bank |220 | |
|Sales | |200 |
|GST Clearing | |20 |
|Cost of Sales |100 | |
|Stock Control | |100 |

d

|Explanation |The GST is collected from the customer on behalf of the ATO, so Hats Off to Hats! has a present obligation, which is expected |
| |to result in an outflow of economic benefits (cash) when the GST is repaid. |

e

|Qualitative characteristic |Reliability |