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Homework answers / question archive / Company pays a total of OMR 2
Company pays a total of OMR 2.500 of sales tres payable to the government The sales were subject to 4% sales tax. What will be the payment journal entry Marted out 10 Tag ution Select one O Accounts Receivable Cr. Sales Sales Taxes Puyable 2.600 2.500 100 b Dr. Sales Taxes Expense Ce Sales 2.500 2.500 2.500 Dr. Sales Taxes Payable Cr. Sales 2.500 d Dr. Sales Taxes Payable Cr. Cash 2.500 2.500 Clear my choice A
Answer: (d) Dr. Sales Tax Payable 2500
Cr. Cash 2500
Reason for above entry: At the time of sales, company booked the liability of sales tax payable 2500 on sales made by the company. Now when the Company clear it's liability of Sales tax Payable by paying Cash/Bank then above entry shall be passed.
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