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May 16, 2017 at 4:30 am
in Question 3 it states that 579790 is inclusive of tax. when calculating the tax at 117.5% I get the answer of 86351.70, could you please explain why this is rounded up to 87990?
John Moffat says
May 16, 2017 at 12:23 pm
The question says that the purchases are 590,790 (not 579790) and the answer is correct – it has not been rounded 🙂
May 20, 2017 at 1:31 am
thanks sorry I think I miss read the question now looking at it again I am able to work it out
May 20, 2017 at 10:06 am
No problem 🙂
gachiri m says
March 31, 2017 at 1:51 pm
hi,kindly clarify on the answer for question 2, why is the balance at the end of the period on the credit side instead of the debit side?
March 31, 2017 at 3:08 pm
The tax collected on the sales is more than the tax suffered on the purchases and therefore there is a liability owing to the state. Liabilities are always credit balances.
Do watch the free lectures on this.
April 1, 2017 at 8:53 pm
i will watch the lectures ,thank you for taking time to reply
April 2, 2017 at 9:55 am
You are welcome 🙂
March 18, 2017 at 10:30 am
please check the answer from question 3 and correct the result from tax on purchases. Correct answer shouldn’t be 87990?.
March 18, 2017 at 5:57 pm
Thanks – I will correct it. It was just a simple typing error.
However the final answer is, of course, correct! 🙂
December 6, 2016 at 7:37 pm
Regarding question 1. can a tax charged on a non current asset for use in the business itself be recovered? i’m confused because it is not bought for resale. right?
December 1, 2016 at 10:49 am
when a company makes sales inclusive of tax does the tax deoartment owe them or they owe the tax department?
December 1, 2016 at 3:16 pm
They the company owes the tax to the state.
You really should watch my free lectures on this!! (The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well)
February 10, 2016 at 2:02 am
Why would installation and delivery be capitalized? Wouldn’t those just be expenses for the business when buying the computer much like Maintenance? I know I’m wrong, maybe I’m forgetting a discussion from a previous chapter!
February 10, 2016 at 6:16 am
Installation and delivery are costs that are need to have the machine working in your building in the first place, and will only be paid the one time.
Maintenance is not needed to get it to start working, but is an expense that will be needed later to keep it working, and will be payable every year (like repairs).
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