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On 1April Kimberley had the following transactions: (a) A cash sale of $8832 (b) A cash receipt of $6624 in relation to a credit sale in the previous month. Both transactions were inclusive of sales tax at 15?. What amount would be recorded in the sales tax column of the cash book on 1 April?
Cash sale: sales tax content = 8832 x 15/115 = 1152
The receipt of cash form the credit sale would have no sales tax content. This is simply a customer paying for an earlier purchase. The sales tax would have been recorded when the sale was originally made.
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