ACCA FA2 GOODS FOR RESALE
Ari registered for sales tax and he has purchased goods for resale. The invoice shows the cost of the goods as $88,000, which includes sales tax of 10%.
What debit entry should be made in the goods for resale account?
SUGGESTED SOLUTIONS
| $ | |
| Invoice value (including sales tax)(110 %) | 88,000 |
| Invoice without tax (100%) | 80,000 |
| Sales Tax on invoice (10%) | 8,000 |
| Answer (Debit entry) | 80,000 |