• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

SALES TAX

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › SALES TAX

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 7, 2020 at 7:25 am #594306
    daisy598
    Member
    • Topics: 13
    • Replies: 6
    • ☆

    The following information relates to Eva Co’s sales tax for the month of March 20X3:

    Sales (including sales tax) 109,250
    Purchases (net of sales tax) 64,000

    Sales tax is charged at a flat rate of 15%. Eva Co’s sales tax account showed an opening credit balance of $4,540 at the beginning of the month and a closing debit balance of $2,720 at the end of the month.

    What was the total sales tax paid to regulatory authorities during the month of March 20X3?

    A. $6,470.00
    B. $11,910.00
    C. $14,047.50
    D. $13,162.10

    I found the wrong answer.

    November 7, 2020 at 9:26 am #594345
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    Have you watched my free lectures on sales tax, because everything needed for this question is explained in the lectures.

    At the start of the month they were owing $4,540 to the state.
    During the month they charged sales tax of 15/115 x 109,250 = 14,250 on the sales, and this is owing to the state.
    Also during the month they suffered 15% x 64,000 = 9,600 on the purchases, and this reduces the amount owing to the state.

    So….if they had paid nothing during the month then they would have ended up owing 9,190 to the state.

    In fact, at the end of the month the state was owing 2,720 back to Eva, which means that they must have paid more than 9,190. The must have paid 9,190 + 2,720 = 11,910.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on What is Assurance? – ACCA Audit and Assurance (AA)
  • Ejueyitsi-Toju on What is Assurance? – ACCA Audit and Assurance (AA)
  • sadik.sadka on How to make the best use of OpenTuition
  • SONIC916 on Lessee accounting – ACCA (SBR) lectures
  • AkinMike on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in