ACCA F3 Sales Tax
Sales (including sales tax) amounted to $58,750, and purchases (excluding sales tax) amounted to $45,000. 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 | 50,000 | 8,750 | 58,750 |
| Purchases | 45,000 | 7,875 | 52,875 |
| Answer | 875 | Credit Balance |