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Manual Level 1 Bookkeeping Mock Exam - HELP!!!!

  • 14 posts
  • # 73007

Hi all

I am new to this so am hoping I get some help.  I have taken my mock exam but has been returned with errors on it and am struggling to understand the following question so if anyone can help I will so grateful!!

His private customers cash takings for the month were: (to which VAT needs to be added)

£480
£520
£540
£500

post the above cash receipts to the relevant accounts in the ledger.

I am confused as I took these amounts to be the Gross amounts and entered these amounts in to the cash account the VAT element into the VAT account and the net amount of the above values into the sales account but have been told this is wrong!!  I dont know how else do work this out and still get my trial balance to actually balance.

I hope im not being completly thick!!!

Thanks in advance

  • 5 posts
  • # 73013

Hi,

it look's like the amounts are the Net as the VAT has not yet been added, so the Net amounts would go in the sales ledger CR side the Vat amounts would go in the VAT leger CR side and the gross amounts would gointo the cash Ledger. I think this is right hope this helps 
Good luck 

  • 180 posts
  • # 73023

I think that the question itself (as written) is straight forwards and students should always do what they are told in any exam question.

I have posted on other threads that on my entrance paper I put 0.00 on a VAT return where it clearly says "if there are none write none." It mattered not that I had been putting 0.00 for years without a problem, I didn't do what I should have done and lost marks.

As to this being unnatural, all students should remember that in the real world everything is not black and white. And so you may, for example, be given a set of figures by a client upon which you have to ask many questions.

However the question seems to want you to do  a little more work to identify a) that you know what VAT is and b) that you calculate it at the correct rate.

As an additional point it may be that this question has been recycled over the past few years during which we have had 17.5%, 15%, 17.5% and 20% - so it also saves reprinting the material.

  • 14 posts
  • # 73164

Thanks for all your help - just about to re-submit my mock exam so fingers crossed I get it right this time!!

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