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Yew Leong says
June 28, 2017 at 6:28 pm
Was wondering, if sales tax is included into the cost of goods (valuation).
1) If sales tax is recoverable, do not include it into inventory.
2) If sales tax is irrecoverable, include it into inventory.
Is my above illustrations correct?
Another question: What is the difference between registered and non registered sales companies?
1) Registered: Collect taxes on behalf of government and can claim on input taxes. [Illustration]
2) Non registered: No claims can be made on taxes, paid taxes either capital or revenue expenditure [Illustration]
3) Does non registered company charge/collect taxes on it product or services? [Question]
Please do correct my above illustration and question if wrong.
Thanks in advance for your greatly appreciated help, your site is a great aid to my F3 studies.
June 28, 2017 at 6:45 pm
Cost should include all: [IAS 2.10]
costs of purchase (including taxes, transport, and handling) net of trade discounts received
Question: Given that only trade discount is mentioned, do i have to exclude purchase discount and purchase allowance as well?
For example, purchase of 5000, purchase discount 50, thus inventory valuation is 4950 or in short net purchases. However given that only trade discount was mentioned my bet would be on 5000.
Thks in advance for the help.
John Moffat says
June 29, 2017 at 5:55 am
You must ask these questions in the Ask the Tutor Forum and not as a comment on a test.
June 26, 2017 at 6:16 am
For question 1 in this chapter, the underlying method is periodic period, am i right.
Assume if the underlying method is perpetual (aka continuous), answer should be Debit Drawing and Credit Inventory, am i right?
Thanks in advance for the help.
June 26, 2017 at 3:45 pm
You are right, but in the exam is it always periodic as in that question:-)
June 28, 2017 at 6:29 pm
Thks alot for your help.
Mohammad Mashfiqur says
March 9, 2017 at 3:32 am
This is really helpful. Thanks Open Tution
March 9, 2017 at 7:51 am
I am pleased that you found it helpful 🙂
February 17, 2017 at 1:29 pm
February 17, 2017 at 4:39 pm
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