View Full Version : Accounting for Sales Tax
blueemi
Apr 23, 2009, 05:38 PM
If total sales were 773,000 and included a 7% sales tax, what is the amount of sales tax payable?
woodpony22
Apr 23, 2009, 06:59 PM
Divide the total by 1.07
satyanarayanara
May 1, 2009, 03:56 AM
Party a/c dr 773000
To sales 718890
To Sales tax payable 54110
(being sales tax collected on sales)
woodpony22
May 1, 2009, 06:35 PM
Party a/c dr 773000
To sales 718890
To Sales tax payable 54110
(being sales tax collected on sales)
Your calculation doesn't proof. 7% of 718890 is 50322.30... not 54110. You just gave the gov and extra 3788 out of your pocket:confused: