Respected sir…… sir for example 2 i calculated in this way…….. let X be the net selling price without tax or exlusive of tax….. then, 16%of X=120 – X 16/100 of X=120 – X 16X=[120 – X]100 16X=12000-100x 116X=12000 X=12000/116 X=103.45approx value where exact is 103.44827 so now as we got the value of X i.e.,103.45 which is net selling price[tax exclusive] so calculating 16%on 103.45 we get the sales tax as 17.so I did it in this way sir which i feel easy can i do the same for the same type of quetions if they repeat……or will this method give out a different answer?

That is fine – it does not matter how you go about calculating the figure. In the exam it will only be asked as an MCQ and only the answer is marked – nobody will look at your workings.

The only factor to consider is speed – you will be in enormous time pressure in the exam and therefore it is vital you do it as fast as you can.

The only situation in which this is relevant for F3 is if the trader is not registered for sales tax.

if that is the case, then they do not change sales tax on their sales. Also, they cannot get back the sales tax on anything they buy. Therefore the full amount paid is the expense (or the cost, if they are buying an asset).

Suppose they pay 120 (Including sales tax) for purchases. The entry if they are not registered for sales tax is Dr Purchases 120 Cr Cash 120. There is no accounting for sales tax.

I feel I have to comment about the material here @ Open, It is fantastic. I have recently been studyig with BPP both classroom and home study and I have not seen any real different between the two organisations. That is how highly I rate the material being provided.

srkrishna says

Respected sir……

sir for example 2 i calculated in this way……..

let X be the net selling price without tax or exlusive of tax…..

then,

16%of X=120 – X

16/100 of X=120 – X

16X=[120 – X]100

16X=12000-100x

116X=12000

X=12000/116

X=103.45approx value where exact is 103.44827

so now as we got the value of X i.e.,103.45 which is net selling price[tax exclusive]

so calculating 16%on 103.45 we get the sales tax as 17.so I did it in this way sir which i feel easy can i do the same for the same type of quetions if they repeat……or will this method give out a different answer?

John Moffat says

That is fine – it does not matter how you go about calculating the figure. In the exam it will only be asked as an MCQ and only the answer is marked – nobody will look at your workings.

The only factor to consider is speed – you will be in enormous time pressure in the exam and therefore it is vital you do it as fast as you can.

srkrishna says

TQ for the information sir..?

John Moffat says

Try are welcome 馃檪

loukasierides says

Oh my God I could not stop laughing. Excellent diagrams, that you for the excellent lecture!

John Moffat says

Thank you for the comment 馃檪

jinansh says

Respected Sir,

Could you pls explain irrecoverable sales tax as it is mentioned in BPP Study Text?

Thank you

John Moffat says

The only situation in which this is relevant for F3 is if the trader is not registered for sales tax.

if that is the case, then they do not change sales tax on their sales. Also, they cannot get back the sales tax on anything they buy. Therefore the full amount paid is the expense (or the cost, if they are buying an asset).

jinansh says

Respected Sir,

Could you pls explain this with an example?

Thank you

John Moffat says

Suppose they pay 120 (Including sales tax) for purchases. The entry if they are not registered for sales tax is Dr Purchases 120 Cr Cash 120. There is no accounting for sales tax.

jinansh says

Thanks a lot sir!!! You are great ????

In the question it will be specified that the company is registered with sales tax???

jinansh says

Sir I meant You are great !!!!!

kathy says

excellent lecture , thank you

Omotayo says

Great lecture…open tuition forever!!!

Nina says

Very easy to understand thank you!!!

puran says

thank you sir.

great lecture

John Moffat says

Thank you also 馃檪

shani says

Good lecture

accakeisha says

great way to put it!!!!

davidmhk says

how can i play these lectures

admin says

here is the help page:

https://opentuition.com/support/

Zeila says

nice lecture..understood well….

johnyzazai says

it does make sense.thanks

haryz says

Brilliant! O.O

mustafa1991 says

Gosh this made it so much easier for me, I had a really hard time understanding tax.

tshegokau says

Totally makes sense, sales tax.

tariqkath says

Thanks OT for making this topic clear 馃檪

paulduffy says

I feel I have to comment about the material here @ Open, It is fantastic. I have recently been studyig with BPP both classroom and home study and I have not seen any real different between the two organisations. That is how highly I rate the material being provided.

abubakar123 says

馃檪 nice lecture

dolce says

The pictures are very pretty 馃檪