ACCA F3 Sales Tax
Sales (including sales tax) amounted to $105,750, and purchases (excluding sales tax) amounted to $81,000. 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 | 90,000 | 15,750 | 105,750 |
| Purchases | 81,000 | 14,175 | 95,175 |
| Answer | 1,575 | Credit Balance |