1. avatar says

    so I understand that, sales tax isn’t representing in inc statement. if it is not paid until end of year it will shown in statement of financial position? under liabilities?

  2. avatar says

    HELP please!!
    Receivables ledgar-$15800
    Error- A credit note to charles for $1000,plus sales tax of $300, had been posted to the receivables ledgar control account as $1300 and to charles personal account as $1000.

    the answer subtracts 300 from 15800 for correction..Why is that so??

    • Avatar of John Moffat says

      The entry in the receivables ledger control account is correct (Cr receivables ledger control 1300, Dr Sales 1000; Dr Sales tax 300)

      However Charles account in the receivables ledger is wrong. We owes him the full 1300 and so his account should have been credited with 1300. But it has only been credited with 1000.
      So….the total of the balances in the ledger is wrong. Because it is a credit note, the total is too high by $300 and so 300 needs subtracting from the total.

      I hope that makes sense :-)

      PS In future please ask this sort of question in the F3 Ask the Tutor Forum, not as a comment on the lecture :-)

      • avatar says

        This was my first time posting a question so wasnt sure.Will do from next times onwards though.
        thankyou for the explanantion!! :)

  3. avatar says

    Kindly help with this question

    A company made sales of $2,950 inclusive of sales tax at 18%.
    The company debited the Receivables account $2,950, credited sales $2,950 and credited the
    Sales Tax account $531.
    What corrections are required?

    A- Dr Sales $450; Dr Sales tax $81; Cr Suspense account $531
    B- Dr Sales $531; Cr Suspense account $531
    C- Dr Receivables account $450; Cr Suspense account $450
    D- Cr Sales $531; Cr Sales tax $450; Cr Suspense account $81

    • Avatar of John Moffat says


      This time the workings in the answer are correct – the sales have been credited with 450 too much and so we need to Debit sales with 450.

      The sales tax has been credited with 81 too much, and so we need to debit sales tax with 81.

      The double entry for them is to credit suspense account with 531.

      So although the workings in the answer are correct, the answer is A.

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