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November 5, 2022 at 9:26 am
thank you John great lectures. though i still struggle with the accounting entries 🙁
John Moffat says
November 5, 2022 at 4:07 pm
Thank you for your comment 🙂
September 27, 2022 at 5:48 am
80% for the first time thanks alot
September 16, 2022 at 8:54 am
there is 87900 written
September 16, 2022 at 2:27 pm
True but it is clearly a tiny typing mistake because the next line is correct and the final answer is correct 🙂
August 27, 2022 at 5:39 pm
For question 1, what if the entity was NOT registered for sales tax..would the sales tax be capitalised?
August 28, 2022 at 8:29 am
Yes (although only the tax on the otherwise capitalised amount – the tax on the remainder increases the expense)
September 2, 2022 at 12:20 am
Thank you, but I would like to clarify one thing what do you mean by “tax on the remainder”? And did you mean that sales tax IS CAPITALISED for entities that are NOT registered for sales tax? Is yes then why is it that way?
September 2, 2022 at 8:51 am
No I did not write that!
If a business is not registered then the cost of something is the cost including the sales tax, and the sales tax is not recorded separately.
This total amount (including the sales tax on it) is capitalised if the expenditure is on something that should be capitalised (such as the cost of a machine).
The total amount (including the sales tax on it) is recorded as an expense in the SOPL if the expenditure is on something that is not capitalised (such as maintenance costs).
September 2, 2022 at 10:44 am
Oh ok. I misunderstood previously. Now I get it, thank you very much. Your website is really helpful
September 2, 2022 at 2:58 pm
You are welcome 🙂
January 27, 2022 at 10:50 am
I thank Allah to start with.
Next, thanks to the management and staffs of Opentuition.com. I manage to get 100%
January 27, 2022 at 4:58 pm
Well done 🙂
August 8, 2021 at 1:07 pm
Hi. Why do we deduct tax on purchases ?
August 8, 2021 at 5:08 pm
The tax due to or from the state is the total of the tax charged on sales less the total of all tax suffered.
I do explain all of this in my free lectures on sales tax.
August 8, 2021 at 5:21 pm
July 3, 2021 at 2:48 pm
decrease and increase in allowance for doubtful debts what are the effects of netprofit
July 3, 2021 at 4:10 pm
An increase in the allowance reduces profit. A decrease in the allowance increases profit.
This is all explained in my free lectures on irrecoverable debts and allowances. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
February 5, 2021 at 9:17 pm
thank Sir i really appreciate you..
February 6, 2021 at 9:47 am
November 5, 2020 at 11:17 pm
Question 4 says the taxable sales and the taxable purchases are ”net of sales tax”, so doesnt that mean the 90000 and the 72000 were exclusive of sales tax, if so wouldnt the answer be 2000 payable instead of 1800 payable
November 6, 2020 at 9:03 am
The amounts are exclusive of tax. Therefore the tax charged on sales is 10% x 90,000 and the tax suffered on purchases is 10% x 72,000.
August 7, 2020 at 12:01 pm
Sir the questions is taken from the past exams or created by you.
Great respect to you sir
August 7, 2020 at 4:24 pm
The ACCA does not release past exams for Paper FA.
Do appreciate these tests are just short tests and it is vital that you buy a Revision Kit from one of the ACCA approved publishers. The Revision Kit is full of exam standard questions in all the different formats that are used in the exam.
May 20, 2019 at 10:34 am
These questions are easy. I got all correct. I woudn’t have achieved 100% without open tuition lectures. Really want to thank all of the open tuition tutors especially Mr. John sir.
May 20, 2019 at 10:56 am
July 13, 2018 at 6:28 pm
5 questions aren’t enough for revision. Please add more quedtions
July 14, 2018 at 8:43 am
No – you must buy a Revision Kit from one of the ACCA approved publishers as we continually say on this website.
The short tests are only meant as a quick check on each chapter.
December 17, 2017 at 11:51 pm
I catch it so quickly n easy. Only the last question I got wrong but I understand after all.
December 18, 2017 at 7:57 am
May 16, 2017 at 4:30 am
in Question 3 it states that 579790 is inclusive of tax. when calculating the tax at 117.5% I get the answer of 86351.70, could you please explain why this is rounded up to 87990?
May 16, 2017 at 12:23 pm
The question says that the purchases are 590,790 (not 579790) and the answer is correct – it has not been rounded 🙂
May 20, 2017 at 1:31 am
thanks sorry I think I miss read the question now looking at it again I am able to work it out
May 20, 2017 at 10:06 am
No problem 🙂
March 31, 2017 at 1:51 pm
hi,kindly clarify on the answer for question 2, why is the balance at the end of the period on the credit side instead of the debit side?
March 31, 2017 at 3:08 pm
The tax collected on the sales is more than the tax suffered on the purchases and therefore there is a liability owing to the state. Liabilities are always credit balances.
Do watch the free lectures on this.
April 1, 2017 at 8:53 pm
i will watch the lectures ,thank you for taking time to reply
April 2, 2017 at 9:55 am
March 18, 2017 at 10:30 am
please check the answer from question 3 and correct the result from tax on purchases. Correct answer shouldn’t be 87990?.
March 18, 2017 at 5:57 pm
Thanks – I will correct it. It was just a simple typing error.
However the final answer is, of course, correct! 🙂
December 6, 2016 at 7:37 pm
Regarding question 1. can a tax charged on a non current asset for use in the business itself be recovered? i’m confused because it is not bought for resale. right?
December 1, 2016 at 10:49 am
when a company makes sales inclusive of tax does the tax deoartment owe them or they owe the tax department?
December 1, 2016 at 3:16 pm
They the company owes the tax to the state.
You really should watch my free lectures on this!! (The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well)
February 10, 2016 at 2:02 am
Why would installation and delivery be capitalized? Wouldn’t those just be expenses for the business when buying the computer much like Maintenance? I know I’m wrong, maybe I’m forgetting a discussion from a previous chapter!
February 10, 2016 at 6:16 am
Installation and delivery are costs that are need to have the machine working in your building in the first place, and will only be paid the one time.
Maintenance is not needed to get it to start working, but is an expense that will be needed later to keep it working, and will be payable every year (like repairs).
July 24, 2019 at 4:23 am
What about additional memory? That certainly doesn’t need to get the computer up and running, does it?
July 24, 2019 at 6:57 am
Additional memory is capital expenditure.
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