- This topic has 2 replies, 2 voices, and was last updated 7 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
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 The sales tax would have been recorded when the sale was originally made.
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.