A petty cash purchase is made costing $77.55, inclusive of sales tax at 17.5%. Which of
the following entries is correct?
a) DR expense $66, DR sales tax $11.55 CR cash $77.55
b) DR cash $77.55, CR sales tax $11.55, CR expense $66.
c) DR expense $63,98, DR sales tax $13.75, CR cash $77.55.
d) DR cash $77.55, CR sales tax $13.57, CR expense $63.98.?
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Petty cash
5y ago#1Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers - they have answers :-)
Assuming the the company is registered for sales tax then the answer is A.
I explain all the entries and the arithmetic in my free lectures on sales tax. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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