Sales Tax (part b)

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  1. Avatar of vharinandan vharinandan says:
    December 23, 2012 at 6:31 am

    In questions relating to trade & cash discounts wrt to sales tax, is it correct to first deduct the trade discount, then add the sales tax amount calculated for given ST percentage & then deduct the cash discount as most of the times we are not sure if or not we are suppose to deduct the cash discount in the problem…? We can still have the same ans if we deduct all the discounts first & add up the sales tax later…

    Thanks

  2. Avatar of chandhini chandhini says:
    December 16, 2012 at 2:52 pm

    Is the answer to first question option D, and second one option B?

  3. Avatar of hamidrathore772 hamidrathore772 says:
    November 24, 2012 at 4:42 am

    why u credit the payables?

  4. Avatar of malkyrox malkyrox says:
    June 18, 2012 at 3:59 pm

    Brilliantly explained!
    Been struggling with this concept until now…
    Now explianed!
    Thank you!

  5. Avatar of monik monik says:
    November 16, 2011 at 2:12 pm

    Hi, i just have a question!in exam for instance if you have got the correct answer it doesnt really mather will way you get the answer will it?cuz for example in example 2 and 3 where we go backwords in order to find the net selling price and the amount of the salex tax i used a different method lets say but it cheks at the end!i just did 120×17.5% wich gives the amount of the sales tax of 38.5 and then i just did 120-38.5=181.5>the net selling price!is this a correct procedure?thanks

  6. Avatar of riccarem riccarem says:
    March 9, 2011 at 6:37 am

    Very well explained. Thank you.

  7. Avatar of dolce dolce says:
    March 2, 2011 at 8:15 pm

    Cost of makink quicker sale= discount
    So shouldn’t it be included in the cost of sales in P&L?

  8. Avatar of danielglover danielglover says:
    January 5, 2011 at 12:30 pm

    When I take my F6 lesson the gross amount is the amount before tax; to gross it up i.e. to get the figure before the income tax was deducted. In this lesson the net value is before tax. ???

    • Avatar of johnmoffat johnmoffat says:
      August 2, 2012 at 9:29 am

      @danielglover, Sales tax is added to get the full selling price.

      The net price is the price before the tax is added; the gross price is the price including the sales tax.

      Don’t confuse it with income tax (which is not in the syllabus for F3). Sales tax is charged on the net selling price, income tax is charged on the full income.

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