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FA Chapter 12 Questions Sales Tax

VIVA

聽

Reader Interactions

Comments

  1. Nduati@254 says

    November 7, 2023 at 8:28 pm

    Hi Sir, what does capitalize mean in Question 1?

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    • John Moffat says

      November 8, 2023 at 8:06 am

      How much is treated as a non-current asset (have you not watched the earlier lectures?)

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  2. HninPannPhyu says

    October 30, 2023 at 5:38 pm

    Hello, I have a question here. Why is output tax less input tax equal 25,000 Credit correct? I thought it was a debit. The difference figures appear on debit side as a closing balance on Tax Account. let me know the explanation, please. Thanks so much!

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    • John Moffat says

      October 31, 2023 at 7:45 am

      The balance is carried forward on the opposite side (as explained in the earlier lectures on double entry bookkeeping). It is a credit balance because they are owing money to the state.

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      • HninPannPhyu says

        October 31, 2023 at 3:15 pm

        It’s clear now. Thanks so much!

      • John Moffat says

        October 31, 2023 at 3:40 pm

        You are welcome 馃檪

      • maxikhan says

        April 15, 2024 at 8:33 am

        I selected 25,000 credit balance of sales tax payable. However, got response that correct answer if Debit 25,000 I am puzzled.

      • John Moffat says

        April 15, 2024 at 9:00 am

        If you are referring to question 2, then you didn’t get that response. Our answer shows the correct answer as being a credit balance and that is correct,

  3. Eni.Ibk says

    September 4, 2023 at 12:29 pm

    In question number two where did the 120 come from?

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    • John Moffat says

      September 4, 2023 at 5:00 pm

      The sales include tax at 20%. Therefore for every 100 sales before tax they will add on 20 tax and the price including tax will be 120.

      So the tax will be 20/120 of the tax inclusive sales.

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    • sandeshbhivgade says

      October 15, 2023 at 4:36 am

      If value (Sales or Purchase) is given including tax, to calculate tax you should use formula:

      Value x Rate of Tax/100+Rate of Tax = Tax Amount

      270000 x 20/120 = 45000

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  4. Linet says

    August 24, 2023 at 11:12 am

    If Allison is not registered for sales tax why are we adding it to the total amount? the last question

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    • John Moffat says

      August 24, 2023 at 4:13 pm

      The supplier will charge tax whether or not Alison is registered.

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  5. Hiba-zat says

    July 27, 2023 at 1:50 pm

    my apology for my previous question wasn’t clear , in Q4 why its payable not receivable ???

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    • John Moffat says

      July 27, 2023 at 4:57 pm

      Because they collected more tax from customers than the tax they suffered, so the difference is owed to the state.

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