高頓網(wǎng)校小編為各位ACCA學(xué)員整理了科目重點知識點輔導(dǎo)，希望大家查漏補缺，對考試有所幫助。        Session 5 Sales tax & Discounts
　　Main Contents:
　　1.General principles of sales tax
　　2.Calculation of sales tax
　　3.Accounting treatment for sales tax
　　4.Trade Discount
　　5.Settlement Discount
　　5.1　Principles of sales tax
　　● Sales tax is a form of indirect tax
　　● Sales tax is charged on purchases(input tax) and sales(output tax).
　　● Sales tax is excluded from the reported sales and purchases of the business.
　　● Periodically business pay the sales tax to the tax authorities
　　● If output tax exceeds input tax, the business pays the excess to the tax authorities
　　● If input tax exceeds output tax, the business is repaid the excess by the tax authorities
　　● Sales tax is sometimes called value added tax (VAT) or goods and service tax
　　● Sales tax is charged on most goods and services.
　　5.2 Calculation of sales tax
　　● It is common for a rate of 17.5% sales tax tobe charged on the selling price.
　　● Calculation
　　Net selling price (tax exclusive price)　　　　100.0%
　　Sales tax　　　　　　　　　　　　　　　　　　　　 17.5%
　　Gross selling price(tax inclusive price)　　　 117.5%
　　- The net selling price is the amount that the business wishes to achieve.
　　- The gross selling price is the price charged to customers.
　　- The difference is paid to the tax authorities.
　　Example 1: Orlando sells the following goods:
　　1.to Bruno at a tax inclusive price of $470.
　　2.to Cosmo at a tax exclusive price of $700.
　　How much sales tax is Orlando collecting on behalf of the government?
　　Solution:
　　Sales to Bruno: 470/117.5% x 17.5% = 70
　　Sales to Cosmo: 700 x 17.5% = 122.50
　　Total tax collected = 70+ 122.50 = 192.50
　　Example 2:
　　Sean Co.purchases goods for $170,625 (including sales tax) and sells goods for $230,500 (including sales tax), what amount of sales tax is ultimately payable to the tax authorities?
　　A.8,918
　　B.14,224
　　C.4,471
　　D.10,479
　　Solution: A
　　Output tax: --- sales (including sales tax) 230,500
　　--- sales tax (17.5%/117.5%) 34,330
　　Input tax:　--- purchase (including sales tax) 170,625
　　--- sales tax (17.5%/117.5%) 25,412
　　Payable to tax authorities
　　Output tax - input tax = 34,330 – 25,412 = 8,918
　　5.3 Accounting entries for sales tax
　　The usual bookkeeping entries for purchases and sales are only slightly amended by sales tax, the sales tax accounts is areceivable or payable account with the tax authorities.
　　● Input sales tax: sales tax on purchases.
　　Dr.Purchases Cost excluding sales tax( net cost)
　　Dr.Sales tax (recoverable) sales tax
　　Cr.Payables/cash cost including sales tax (gross cost)
　　● Output sales tax: sales tax on sales.
　　Dr.Receivables/ Cash Price including sales tax( gross selling price)
　　Cr.Sales- sales price excluding sales tax (net selling price)
　　Cr.Sales tax (payable)
　　● Payment of sales tax
　　- if output tax exceeds input tax, a payment must be made to the tax authorities.
　　Dr.Sales tax amount paid
　　Cr.Cash paid
　　- if input tax exceeds output tax, there will be receipt from the tax authorities.
　　Dr.Cash amount received
　　Cr.Sales tax amount received
　　5.4 Trade discount:
　　● A discount given for ordering in large quantities or as an incentive for regular customers.
　　● Merely a reduction in the selling price of goods at the point of sale. (promotion price)
　　● The transaction is initially recorded at the discounted price.
　　Example:
　　Lucy is a wholesaler of electronic goods. Tom, her regular customer, wishes to order 15 sets of VCD players. The list price is $250 per set. On account of their close business relationship. Lucy offers a 5% trade discount.
　　In Lucy’s books:
　　Credit sales $3,562.50
　　In Tom’s books:
　　Credit purchases $3,562.50
　　Cash discounts are given to encourage trade receivables to settle their debts before the credit term expires.
　　5.5 Settlement discount:
　　● A discount given for early payment of a debt i.e. within a stated period of time
　　● The transaction is initially recorded at a full price. If the discount is taken, this is accounted for when the debt is settled.
　　Discount allowed:
　　● A business may give its customer a discount – known as Discount allowed
　　Dr. Discount allowed (expense)　x
　　Cr. Receivables　　　　　　　　　　　 x
　　Discount received:
　　● A business may receive a discount from a supplier – known as Discount received.
　　Dr. Payables　　　　　　　　　　 X
　　Cr. Discount received (income)　 X
　　Example:
　　On 1 May 20x1, Lucy sells 10 sets of color TV to Victor at a price of $600 per set. The term of sales states that Victor is given 30 days ( i.e. due date is 31 May 2001) to settle the debt. If Victor pays on or before 11 May 2001, a 2% cash discount will be granted.
　　(a)Case 1: Victor takes advantages of the cash discount and pays on 11 May 2001.
　　in Victor’s books:
　　Dr. Trade payables　　　　 $6,000
　　Cr. Bank　　　　　　　　　 $5,880
　　Discount received　　　　　　$120
　　in Lucy’s books:
　　Dr. Bank　　　　　　　　　 $5,880
　　Discount allowed　　　　　　 $120
　　Cr. Debtor　　　　　　　　 $6,000
　　in this case, the discount allowed to Victor is Lucy’s selling expense.
　　(b)Case 2: Victor pays on 31 May 2001
　　In Victor’s books:
　　Dr. Trade payables　　　　 $6,000
　　Cr. Bank　　　　　　　　　 $6,000
　　In Lucy’s books:
　　Dr. Bank　　　　　　　　　 $6,000
　　Cr. Trade receivables　　　$6,000
　　How to deal with a case with sales tax and discount at the same time?
　　Example:
　　Mountain sells goods on credit to Hill. Hill receives a 10% trade discount from Mountain and a further 5% settlement discount if goods are paid for within 14 days. Hill bought goods with a list price of 200,000 from Mountain. Sales tax is at 17.5%
　　What amount should be included in Mountain’s receivables ledger for this transaction?
　　A: $ 235,000
　　B: $211,500
　　C: $200,925
　　D: $209,925
　　Solution: D
　　List price:
　　Trade discount
　　Sales tax(17.5% x 95% x 180,000)