ACCA F3 Sales Tax 4
D Co's transactions for the month of September 2015 were as follows:
| $ | |
| Sales (Including sales tax) | 1,440,000 |
| Purchases (Excluding sales tax) | 1,080,000 |
D Co is registered for sales tax at 20%. On 1 September 2015 the sales tax account showed sales tax recoverable by D Co of $3,600.
What was the balances on the sales tax account on 30 September 2015?
Suggested solutions:
| Invoice | Sales tax | Total | |
| $ | $ | $ | |
| Sales | 1,200,000 | 240,000 | 1,440,000 |
| Purchases | 1,080,000 | 216,000 | 1,296,000 |
| 24,000 | Credit Balance | ||
| Less opening balance | 3,600 | Debit Balance | |
| Answer | 20,400 | Credit Balance |