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John Moffat.
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Harmeet93s
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Valerie’s business is registered for sales tax purposes. During the quarter ending 31 March 20X6, she made the following sales, all of which were subject to sales tax at 17.5%:
$10,000 excluding sales tax
$7,402 including sales tax
$6,745 excluding sales tax
$11,632 including sales tax.
She also made the following purchases all of which were subject to
sales tax at 17.5%:
$15,000 excluding sales tax
$12,455 including sales tax
$11,338 including sales tax
$9,870 including sales tax.
What was the balance on the sales tax account as at 31 March
20X6?
A $7,639 Dr
B $1,875 Dr
C $7,639 Cr
D $1,875 CrThis is an exercise from the Kaplan book chapter 5 Returns, discounts and sales tax. I was a bit destabilised after that. Are the exam questions as difficult? Is it normal that this exercise is difficult for me?
John Moffat
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Although everything needed to be able to answer this question is examinable, questions in the exam are only 2 marks each and so this is really a little bit too long a question to be asked in the exam.
Most important is to practice all of the questions in the Exam Kit because they are all exam standard. If you are watching my free lectures then you do not really need the Study Text because the lectures are a complete free course and cover everything needed to be able to pass the exam (including, obviously, everything needed to be able to deal with sales tax). However, you still do need the Exam Kit, because practice at exam standard questions is essential to passing the exam.
Harmeet93s
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