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October 12, 2019 at 10:11 pm
Not your question but sales tax related. The following trans took place during Alan’s first month of trading Credit sales of $121000 exclusive of sales tax Credit purchases of $157110 inclusive of sales tax Cash payments to credit suppliers of $82710 inclusive of sales tax
all transactions are subject to 20% sales tax- What was Alan’s sales tax account at the end of his first month of trading? I answered : 15770 DR but answer was $1985 DR. Why was the cash payment sales tax not counted on Alan’s Sales tax account because he would have separated it so he could claim it back? I know its not your question but intrigued
John Moffat says
October 13, 2019 at 10:29 am
In future please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture.
The cash paid is not for extra purchases. It is payment of part of the amount for the purchases on credit. The sales tax is accounted for then the purchases were made.
March 1, 2019 at 7:31 am
yusifbayli: Thank you for the comment 🙂
February 28, 2019 at 6:28 pm
All lessons very useful thanks for everything.
August 5, 2018 at 2:39 pm
Thanks for the lectures, they’re very helpful.
I am struggling with your example as in if the tax is on the final price of the product the your example doesn’t add up as 20% of 12 is 2.4 and 20% of 6 is 1.2 and so on.
August 5, 2018 at 3:55 pm
Never mindI just realised this is VAT not normal tax.
August 5, 2018 at 4:22 pm
I am pleased that you have sorted it out 🙂
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