CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 82
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

VWX is registered for sales tax in Country B A sales invoice to its mam customer shows the following information:

What journal entry will WVX process to record this transaction in its nominal ledger?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: B

by Carissa at Mar 04, 2024, 09:54 AM

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Evangelina

8 months ago

I think Option D reflects the correct treatment of sales tax as per the invoice details.

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Gretchen

8 months ago

What makes you think Option D is the correct choice?

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Evangelina

8 months ago

I disagree, I believe the correct journal entry is Option D.

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Louisa

8 months ago

Because the invoice is showing S125 as the total value and Option A has the same amount.

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Gretchen

8 months ago

Why do you think Option A is the correct journal entry?

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Louisa

8 months ago

I think the journal entry should be Option A.

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Deandrea

8 months ago

In Option B, the journal entry correctly records the sales and the sales tax separately.

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Julene

8 months ago

Really? Can you explain why?

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Deandrea

9 months ago

I disagree, I believe the answer is Option B.

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Julene

9 months ago

Because the journal entry in Option A includes the correct debit and credit entries.

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Lenita

9 months ago

Hmm, why do you think that?

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Julene

10 months ago

I think the answer is Option A.

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