ACCA F3 Sales Tax 1
The following information relates to Ava Co's sale tax for the month of December X4.
| $ | |
| Sales (including sales tax) | 57,500 |
| Purchases (net of sales tax ) | 45,000 |
Sales tax is charged at a flat rate of 15%. Ava's sales tax account showed an opening credit balance of $ 5,125 at the beginning of the month and a closing Credit balance of $ 4,936 at the end of the month.
What was the total sales tax paid to regulatory authorities during the month of December X4?
Suggested solutions:
| Amount | Sales tax | Total | |
| $ | $ | $ | |
| Sales | 50,000 | 7,500 | 57,500 |
| Purchases | 45,000 | 6,750 | 51,750 |
| DEBIT | CREDIT | ||
| $ | $ | ||
| Sales tax opening balance | 5,125 | ||
| Sales tax Purchases | 6,750 | Sales tax Sales | 7,500 |
| Sales tax PAYMENT TO AUTHORITIES | |||
| Sales tax closing balance | 4,936 |
opening balance +sales (salestax) - purchses (salestax) - payment = closing balance
payment = opeing balance + sales (salestax) -purchases (salestax) - closing balance
payment = 5,125 +7,500 - 6,750 - 4,936
payment = $ 939