Page 67 - Microsoft Word - 00 - Prelims.docx

Returns, discounts and sales tax

Payment of sales tax

Debit Sales tax (amount paid)

Credit Cash (amount paid)

Receipt of sales tax

Debit Cash (amount received)

Credit Sales tax (amount received)

If a business entity is registered for sales tax, the purchases and
sales day books must include additional columns to record the
sales tax on transactions.

Illustrations and further practice

Now try TYU 5 and TYU 6 from Chapter 5 of the Study Text.

Tutor notes guidance – discussion points

Take students through illustration 2 of the Study Text to demonstrate how
sales tax is incorporated into the day books.

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