Wrong GST/TAX Calculations.

[Bill Wisse]

On Thursday 17 June 2004 18:19, Advertisement wrote:
> Hi there,
>
> Thanks for your previous posts, been doing some reading about accounting
> but ran into a a problem which I cannot fix at all.
>
> In Australia, we have to charge GST (TAX) of 10% to applicaple items. In
> theory, $100 item has $10 of GST (10%). But in some accounting books I
> read, they say to calculate the GST, devide $100 by 11 resulting 9.0909*

The first is the tax on YOUR sale price.

The second is to calculate the included amount of GST on the Customer SALE 
price.



-- 
Greetings from

/bill at 169 west , 19 south.  
  
Disclaimer: Any errors in spelling, tact, or fact are
transmission errors."