ACCA F3 Sales Tax
Sales (including sales tax) amounted to $47,000, and purchases (excluding sales tax) amounted to $36,000. What is the balance on the sales tax account, assuming all items are subject to sales tax at 17.5%?
Suggested solutions:
| Amount | Sales tax | Total | |
| $ | $ | $ | |
| Sales | 40,000 | 7,000 | 47,000 |
| Purchases | 36,000 | 6,300 | 42,300 |
| Answer | 700 | Credit Balance |