ACCA F3 Sales Tax
Sales (including sales tax) amounted to $11,750, and purchases (excluding sales tax) amounted to $9,000. 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 | 10,000 | 1,750 | 11,750 |
| Purchases | 9,000 | 1,575 | 10,575 |
| Answer | 175 | Credit Balance |