ACCA F3 Sales Tax 2
The following information relates to Ava Co's sale tax for the month of December X4.
| $ | |
| Sales (including sales tax) | 103,500 |
| Purchases (net of sales tax ) | 81,000 |
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 $ 3,702 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 | 90,000 | 13,500 | 103,500 |
| Purchases | 81,000 | 12,150 | 93,150 |
| DEBIT | CREDIT | ||
| $ | $ | ||
| Sales tax opening balance | 5,125 | ||
| Sales tax Purchases | 12,150 | Sales tax Sales | 13,500 |
| Sales tax PAYMENT TO AUTHORITIES | ????? | ||
| Sales tax closing balance | 3,702 |
opening balance +Salestax sales - Salestax purchases (- payment = closing balance
payment = opeing balance + Salestax sales - Salestax purchases - closing balance
payment = 5,125 +13,500 - 12,150 - 3,702
payment = $2,773