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sales tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › sales tax

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • November 22, 2014 at 7:07 pm #212267
    6shahir
    Member
    • Topics: 202
    • Replies: 296
    • ☆☆☆

    Sales tax is recorded as income in the accounts of the entity selling the goods..

    This is false

    My question to u is When an entity sells good..

    We record like this —– Debit -trade receivables with the gross amount
    credit- Sales tax
    credit – Sales with the net amount
    so its in the credit side cant it be income?

    November 23, 2014 at 10:31 am #212338
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    We credit for income (here, sales) and we credit for liabilities (here, sales tax)

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