Accounting for taxes

Pankaj (AM - Finance & Accounts)   (58 Points)

17 April 2009  

Can any one explain me  accounting enteries for sales tax paid on purchases & collected on sales and also while presenting financial statements sales tax paid on purchases is to be excluded from cost of purchase or not? can i include the sales tax paid on purchase in purchase a/c & sales tax collectedo on sales in sales a/c?