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Please help

  • 16 posts
  • # 71346

does this look right?

                                                           Goods total £427.50

                                            Trade discount @ 5% £21.37

                                                                 Subtotal£406.13

                                                           VAT @ 20% £ 79.60

                                                          Invoice total£485.73

                                                           Terms: 2% Settlement in 10 days     

    

 please any help

  • Member
  • Practice Licence
  • 44 posts
  • # 71347

Are you doing an exam Willis?

It looks like one of the questions I have just answered

Edited at 25 May 2011 03:20 PM GMT

Edited at 25 May 2011 03:20 PM GMT

  • 16 posts
  • # 71348

360peter said:

“Are you doing an exam Willis?

It looks like one of the questions I ha just answered

Edited at 25 May 2011 03:20 PM GMT


an assignment, any ideas?

  • Member
  • Practice Licence
  • 44 posts
  • # 71349

I would revisit your vat and the 2% terms and the subtotal.

  • 16 posts
  • # 71351

360peter said:

“I would revisit your vat and the 2% terms and the subtotal.”


sorry still confussed!!

  • Member
  • Practice Licence
  • 44 posts
  • # 71353

The vat has not been calculated at 20% of the net invoice ( assuming this is an invoice) 20% of £406.13 is £81.23.

If you are takaing into account the 2% early settlement, then this should be deducted off you net amount then Vat taken on the new total.

Hope this puts you in the right direction.

  • 16 posts
  • # 71356

360peter said:

“The vat has not been calculated at 20% of the net invoice ( assuming this is an invoice) 20% of £406.13 is £81.23.

If you are takaing into account the 2% early settlement, then this should be deducted off you net amount then Vat taken on the new total.

Hope this puts you in the right direction.”


makes more sense, thankyou.
congrats on your pass

  • Member
  • Practice Licence
  • 44 posts
  • # 71358

No problem Willis.

Good luck with your course and subsequent exam.

  • Fellow
  • Practice Licence
  • 27 posts
  • # 71373

Hi Willis your answer is correct.

You have correctly calculated the the vat assuming the early settlement discount will be taken.  The net figure that you have is correct as at the time of raising the invoice the supplier will not know if the early settlement discount will be taken. 

Hope I haven't confused you more.

regards

Lynne

  • Member
  • Practice Licence
  • 44 posts
  • # 71375

Apologies to Willis,

I think I might need to hit the books a bit harder and brush up on a bit of knowledge. I have never seen an invoice like that before.!!!!!!Embarassed

Lynne, Thanks for the heads up, Lets hope I never come across this situation in practice!!!!!Wink

  • 16 posts
  • # 71380

Thanks guys, was big help, was getting frustrated!
@ lynne, thanks, was hoping that was correct!
@ peter thanks for your input.

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