ACCA F3 Sales Tax 4
D Co's transactions for the month of September 2015 were as follows:
| $ | |
| Sales (Including sales tax) | 360,000 |
| Purchases (Excluding sales tax) | 270,000 |
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 $1,200.
What was the balances on the sales tax account on 30 September 2015?
Suggested solutions:
| Invoice | Sales tax | Total | |
| $ | $ | $ | |
| Sales | 300,000 | 60,000 | 360,000 |
| Purchases | 270,000 | 54,000 | 324,000 |
| 6,000 | Credit Balance | ||
| Less opening balance | 1,200 | Debit Balance | |
| Answer | 4,800 | Credit Balance |