ACCA F3 Sales Tax (part a)
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Respected sir……
sir for example 2 i calculated in this way……..
let X be the net selling price without tax or exlusive of tax…..
then,
16%of X=120 – X
16/100 of X=120 – X
16X=[120 – X]100
16X=12000-100x
116X=12000
X=12000/116
X=103.45approx value where exact is 103.44827
so now as we got the value of X i.e.,103.45 which is net selling price[tax exclusive]
so calculating 16%on 103.45 we get the sales tax as 17.so I did it in this way sir which i feel easy can i do the same for the same type of quetions if they repeat……or will this method give out a different answer?
That is fine – it does not matter how you go about calculating the figure. In the exam it will only be asked as an MCQ and only the answer is marked – nobody will look at your workings.
The only factor to consider is speed – you will be in enormous time pressure in the exam and therefore it is vital you do it as fast as you can.
TQ for the information sir..?
Try are welcome 馃檪
Oh my God I could not stop laughing. Excellent diagrams, that you for the excellent lecture!
Thank you for the comment 馃檪
Respected Sir,
Could you pls explain irrecoverable sales tax as it is mentioned in BPP Study Text?
Thank you
The only situation in which this is relevant for F3 is if the trader is not registered for sales tax.
if that is the case, then they do not change sales tax on their sales. Also, they cannot get back the sales tax on anything they buy. Therefore the full amount paid is the expense (or the cost, if they are buying an asset).
Respected Sir,
Could you pls explain this with an example?
Thank you
Suppose they pay 120 (Including sales tax) for purchases. The entry if they are not registered for sales tax is Dr Purchases 120 Cr Cash 120. There is no accounting for sales tax.
Thanks a lot sir!!! You are great ????
In the question it will be specified that the company is registered with sales tax???
Sir I meant You are great !!!!!
excellent lecture , thank you
Great lecture…open tuition forever!!!
Very easy to understand thank you!!!
thank you sir.
great lecture
Thank you also 馃檪
Good lecture
great way to put it!!!!
how can i play these lectures
here is the help page:
https://opentuition.com/support/
nice lecture..understood well….
it does make sense.thanks
Brilliant! O.O
Gosh this made it so much easier for me, I had a really hard time understanding tax.
Totally makes sense, sales tax.
Thanks OT for making this topic clear 馃檪
I feel I have to comment about the material here @ Open, It is fantastic. I have recently been studyig with BPP both classroom and home study and I have not seen any real different between the two organisations. That is how highly I rate the material being provided.
馃檪 nice lecture
The pictures are very pretty 馃檪