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I took my exam today and unfortunately failed. I have looked at the free report to see where I went wrong but it does not give my the question or the correct answer so Its difficult to learn from my mistakes . Am I veiwing this report correctly or can i get the info any where else.
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- Member PM.Dip
- Practice Licence
- 107 posts
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Hi Jacqueline
Not sure if this helps but I got a couple of questions wrong in mine and the report showed the question with my answer. So it was just a matter of checking back through my notes/textbook to see where i went wrong. Could have kicked myself as one of them was really basic!
Very bad luck but don't give up, it will be worth it in the end.
linx_p
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Hi
Can some one help me to do this question.
If Cash received from private customers for work done was £5000.00
What was the amount of VAT included in the cash received? VAT rate is 17.5%
Ashraf”
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- Fellow PM.Dip
- Practice Licence
- 115 posts
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Hi Ashraf
To work out the VAT element with VAT at 17.5% it is
amount x 17.5/117.5
Much easier now VAT is at 20%, amount x 20/120 which is same as amount x 1/6, but not so nice when you come to pay it :(
Mike
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Edited at 06 Apr 2011 07:27 PM GMT
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Naseer
I think your reply is somewhat undiplomatic.
Mike has answered the question that you have asked.
He obviously can't see your paper.
Perhaps if you don't understand his answer you should refer to your tutor.
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Hi Ashraf
Mikee has answered your question you have asked how much of the £5,000.00 is VAT. and Mikee has given you the formula to work it out.
The clue is that the VAT is included therefore the amount given must be gross if the VAT had not been included it would have been net.
I think it is you who needs to read and undertsand the question not mikee.
Remeber Ashraf people like mikee give up their time to help others like yourself so please be mindful of this when you reply.
Best regards
Stuart
Edited at 17 Mar 2011 04:21 PM GMT
Edited at 17 Mar 2011 04:22 PM GMT
Edited at 17 Mar 2011 04:22 PM GMT
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Hi Stuart
When I ask to read the question carefully, I dont mean rong way, maybe I might not understant the question properly. If anyone feel it in wrongway I "APPOLOGISED". its my language problem. I am not very good in English and confused abt that question now.
By looking at Mikee's reply I feel thats 5000.00 is including VAT. but my tutors reply I felt 5000.00 is excluding VAT.
That number 5000.00 and the VAT rate 17.5% is not in the Question paper that is totally different number.
Anyway no one helped me to clarify the exact answer. but thanks for the people who replied for my question.
"I Still does not understand that question".
Edited at 17 Mar 2011 04:33 PM GMT
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Hi Ashraf
Post the question on here exactly as it is on the paper you are looking at including any other information given on the paper and I will see If I can help other wise e-mail me your details stuart.wildman@wellersaccountants.co.uk and I will see if I can talk you through it.
It is important to understand the basics
Kind Regards
Stuart
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Naseer said:
“Hi
Can some one help me to do this question.
If Cash received from private customers for work done was £5000.00
What was the amount of VAT included in the cash received? VAT rate is 17.5%
Ashraf”
”
The clue is in the fact that Cash has already been received so therefore would have to have the VAT included. You are not allowed to invoice without VAT if you are VAT registered.
You really need to work this out yourself, Ashraf, as it is a basic question.
Another way to find the answer is as follows:
Step one - £5000 / 1.175 = x
Step Two - £5000 - x = answer
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Thanks for everyone who replied to my question.
I know the basic calculation for the VAT with Gross amount and NET amount But I wasnt sure if the question comes like that £5000 is included or excluded of VAT maybe because of my English stantard....
From Liz D's reply I have got the exact answer what I wanted, now I understand that 5000 is included of VAT.
thanks again for everyone
Edited at 06 Apr 2011 07:26 PM GMT
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I would like to get understand what the question is telling.
What was the amount of VAT included in the cash received?
Is that mean gross amount or Only VAT amount?
Thanks
Ashraf
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Ashraf.
I think you are making this very difficult for anyone to help you.
You have already said " I have got the exact answer what I wanted, now I understand that 5000 is included of VAT" but your latest posting appears to contradict this.
Stuart has suggested that you post the exact question but you have not done so. We can only help if we have the right information.
It may be best to talk to your tutor on this.
Edited at 21 Mar 2011 04:13 PM GMT
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- Fellow PM.Dip
- Practice Licence
- 115 posts
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Naseer said:
“I would like to get understand what the question is telling.
What was the amount of VAT included in the cash received?
Is that mean gross amount or Only VAT amount?
Thanks
Ashraf”
Hi Ashraf
The question is asking you for the VAT amount.
So for instance if the amount received was £5000, this is the gross amount.
The net amount is £4255.32 ( gross amount divided by 1.175)
The VAT amount is £744.68 ( net amount x 0.175 or gross amount x 17.5/117.5).
Another way to think of it is:
How much does the customer pay - the gross amount.
How much does the company keep - the net amount.
How much tax is paid - the VAT amount.
Hope that helps.
Mike
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Mikeee said:
“Naseer said:
“I would like to get understand what the question is telling.
What was the amount of VAT included in the cash received?
Is that mean gross amount or Only VAT amount?
Thanks
Ashraf”
Hi Ashraf
The question is asking you for the VAT amount.
So for instance if the amount received was £5000, this is the gross amount.
The net amount is £4255.32 ( gross amount divided by 1.175)
The VAT amount is £744.68 ( net amount x 0.175 or gross amount x 17.5/117.5).
Another way to think of it is:
How much does the customer pay - the gross amount.
How much does the company keep - the net amount.
How much tax is paid - the VAT amount.
Hope that helps.
Mike
”
thanks Mikeee
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May I try to answer this question in full,
the 5000 is the Gross amount if VAT is included, but if VAT is not included the 500 is the net amount. To extract the VAT from a gross amount you divide it by 1.175, then subtract the original amount to get the VAT amount,
hope this has helped,
Kind Regards
Paula Welsh
Naseer said:
“Mikeee said:
“Naseer said:
“I would like to get understand what the question is telling.
What was the amount of VAT included in the cash received?
Is that mean gross amount or Only VAT amount?
Thanks
Ashraf”
Hi Ashraf
The question is asking you for the VAT amount.
So for instance if the amount received was £5000, this is the gross amount.
The net amount is £4255.32 ( gross amount divided by 1.175)
The VAT amount is £744.68 ( net amount x 0.175 or gross amount x 17.5/117.5).
Another way to think of it is:
How much does the customer pay - the gross amount.
How much does the company keep - the net amount.
How much tax is paid - the VAT amount.
Hope that helps.
Mike
”
thanks Mikeee
”
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Dear all
I would like to clarify Input tax and Output tax?
If the VAT is Debit - Input tax
If the VAT is Credit- Output tax
Is this correct
Ashraf
Edited at 22 Mar 2011 12:22 PM GMT
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Ashraf.
I think the wording of your question is vague.
Whilst we all appreciated your earlier posting when you suggested that there may have been a problem with your English there is a danger, in my opinion, that you may get even more confused by answers which attempt to directly address the question you are asking.
The forum cannot be a repalcement for your studies at this level and my suggestion would be to discuss this with your tutor.
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