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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Sales Tax, BBP Q.5.2
Hi John, quick question regarding this question about sales tax:
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) is 64 000
Sales tax is charged at 15%. Eva’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.
My question is, why is it that in the answers both the opening and closing balance are showing in the credit side of the sales tax account? When it states above that opening is a credit balance and closing is a debit balance? Is the answer an error? Thanks!
Suppose the you have a t-account with 100 on the debit side and 20 on the credit side.
The balancing figure is 80 on the credit side which is carried forward and brought forward on the debit side.
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