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Post removed due to violation of examination rules
Edited at 25 Mar 2011 08:01 PM GMT by (MODERATOR)
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Post removed due to violation of examination rules
Edited at 25 Mar 2011 08:01 PM GMT by (MODERATOR)
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Post removed due to violation of examination rules
Edited at 25 Mar 2011 08:02 PM GMT by (MODERATOR)
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Post removed due to violation of examination rules
Edited at 25 Mar 2011 08:02 PM GMT by (MODERATOR)
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Hi Clare
Do you have the Kaplan Practical Bookkeeping?
Chapter 4 p55 shows a good illustration.
If not - I'll type it in
regards
Liz
sorry taken answer out as I realised the is an exam question
Edited at 22 Mar 2011 02:43 PM GMT
Edited at 23 Mar 2011 11:15 PM GMT
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I have removed my posting. I do NOT knowingly violate any ICB rules.
Edited at 22 Mar 2011 10:51 PM GMT
Edited at 25 Mar 2011 10:54 PM GMT
Edited at 25 Mar 2011 10:54 PM GMT
Edited at 25 Mar 2011 10:58 PM GMT
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- Fellow PM.Dip
- Practice Licence
- 115 posts
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Geoff said:
“Liz
I havent seen the book that you are referring to but my interpretation of your answer is that it is wrong - sorry!
HMRC say "
Discounts on goods and services
If any of your goods or services are discounted, you charge VAT on the discounted price rather than the full price."
The link is here
http://www.hmrc.gov.uk/vat/managing/charging/discounts-etc.htm
”
That's what I thought, otherwise it undermines the principal of VAT as a sales tax - if you can charge more VAT than is due on the actual sale price then what's to stop you doing the reverse.
In the course notes I have it says that if an invoice shows a discount VAT must be calculated on the discounted amount. Presumably if they don't take the discount you invoice them for the full amount..
Mike
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Geoff I stand corrected
incorrect would have been a touch more diplomatic 
Strange - I got it right when sitting exams and dealt with over several years in employment - not sure why I convinced myself you weren't correct - having a dizzy lizzie day I think.
I'll edit the post
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I have removed my posting.
I do NOT knowingly violate ICB rules.
Edited at 25 Mar 2011 10:58 PM GMT
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Hi Claire,
today I have done the exam and I answered 238.20 me too! As you I cannot understand: I follow HLC and in all my assignment done I have always calculated Price - trade discount - settlement discount + Vat (added on Price minus only trade discount)!
Without words as you!
Sabrina
Claire Scott said:
“Post removed due to violation of examination rules
Edited at 25 Mar 2011 08:05 PM GMT by (MODERATOR)
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I am presuming that they mean the client has settled within the terms agreed so it would be net amount - trade and settlement discount + VAT worked out on discounted amount giving the invoice total.
If this is the case then your answer would be wrong. Maybe the wording of the question has caused the confusion!
If it doesn't mention when the invoice was paid then I would assume your answer to be correct.
Edited at 23 Mar 2011 01:50 PM GMT
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- Fellow PM.Dip
- Practice Licence
- 16 posts
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Edited at 26 Mar 2011 09:51 AM GMT
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Apologies to those who have been involved in this forum
Claire
Edited at 25 Mar 2011 09:59 PM GMT
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Hi Liz D
Thanks for asking me to delete that question.
I wrote that question in the forum because few weeks ago I asked a question in the forum after chang the few things and few people replied to asking me to post the exact question what I want to clarify.
Anyway sorry for this and thanks to you.
Edited at 29 Mar 2011 05:02 PM GMT
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Hi Naseer
Can you please delete your post if these are exam questions?
Unfortunately you will probably find this is against the rules of the forum and exam rules and you might land yourself in trouble.
Thanks
Liz D
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Hi Naseer
If you can try and ask the questions in a slightly different way, scenario, numbers etc and not use the topic 'exam' it might be okay.....
I know it's difficult to try and reword but we'll get there in the end.
How did you get on with your exam?
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