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    blueemi's Avatar
    blueemi Posts: 5, Reputation: 1
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    #1

    Apr 23, 2009, 05:38 PM
    Accounting for Sales Tax
    If total sales were 773,000 and included a 7% sales tax, what is the amount of sales tax payable?
    woodpony22's Avatar
    woodpony22 Posts: 15, Reputation: 3
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    #2

    Apr 23, 2009, 06:59 PM

    Divide the total by 1.07
    satyanarayanara's Avatar
    satyanarayanara Posts: 11, Reputation: 0
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    #3

    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's Avatar
    woodpony22 Posts: 15, Reputation: 3
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    #4

    May 1, 2009, 06:35 PM
    Quote Originally Posted by satyanarayanara View Post
    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:
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