ACCA F3 Sales Tax
Sales (including sales tax) amounted to $82,250, and purchases (excluding sales tax) amounted to $63,000. 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 | 70,000 | 12,250 | 82,250 |
| Purchases | 63,000 | 11,025 | 74,025 |
| Answer | 1,225 | Credit Balance |