Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › #sales tax
- This topic has 6 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- July 7, 2015 at 3:16 am #259668
list price $200
trade discount@10%
cash discount@5% if paid within 15 days.
sales tax@15%
what is the amount of sales tax and gross payable?July 7, 2015 at 3:31 am #259669my calculation is:
price =200
TD@10% =(20)
CD@5% =(9)
net amount=171
so, sales tax=171×15%=$25.65
I am clear so far..(sales tax is always calculated after all discount)
but my confusion is about gross amount.
is it $180+$26.65=$206.65 OR,
$171+$26.65=$197.65
plz sir help me n explain if needed..July 7, 2015 at 8:17 am #259678The gross amount is 206.65.
If the customer does not pay within 15 days then they will pay the full 206.65.
If they do pay within 15 days then they will only pay 197.65 and the remaining 9 goes to the discount allowed account.
July 7, 2015 at 10:56 am #259794ok..on the time of sale gross amount is 206.65 am I right sir?rest depent on the payment period.
July 7, 2015 at 11:00 am #259795That is correct 🙂
July 7, 2015 at 2:32 pm #259831thanks for your help sir..
July 8, 2015 at 6:50 am #259932You are welcome 🙂
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