Sales tax…..explain your answer

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    queeenshana
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    If Mr. B purchased “Alpha” worth $10,500 (inclusive tax) and sold Beta worth $20,000 (exclusive tax). Calculate the amount in the sales ledger.


    Avatar of Vipin
    Vipin
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    taking 17.5% as sales tax %.

    tax on alpha is 10500*17.5/117.5=1564

    tax on beta is 20000*17.5%=3500

    dr sales tax 1564
    cr sales tax 3500

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