CIMA BA3 · Chapter 4 · Question 9 of 10
The sales day book for a month shows totals of: net $50,000, sales tax $10,000, gross $60,000. Which entry records these totals in the general ledger?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Receivables control $60,000; Credit Sales $50,000; Credit Sales tax $10,000
Explanation
Customers owe the gross amount, so the receivables control account is debited with $60,000. Revenue excludes sales tax, so sales is credited with $50,000, and the $10,000 owed to the tax authority is credited to the sales tax account as a liability.
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