Page 82 - F3 -FA Integrated Workbook STUDENT 2018-19
P. 82
Chapter 5
Example 4
Sales tax
Handl entered into the following transactions:
1 Sold goods to Mozart which had a sale price of $5,000, on which sales
tax of 20% should be charged.
2 Sold goods to Bach for $5,500, which was inclusive of sales tax at 10%
3 Purchased goods from Liszt at a gross cost of $4,600, which was
inclusive of sales tax charged at 15%.
4 Purchased goods from Brahms at a cost of $2,500 on which sales tax of
12% was charged.
Required:
For each transaction, state the net, sales tax and gross value that will be
recorded in the accounting records.
Solution
1 2 3 4
$ $ $ $
Net 5,000 5,000 4,000 2,500
Sales tax 1,000 500 600 300
––––– ––––– ––––– –––––
Gross 6,000 5,500 4,600 2,800
––––– ––––– ––––– –––––
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