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• # 77387
• Thu 01 Dec 2011 12:10 PM

Hi I hope soemone can help. I am using the Apportionment scheme 1 for a retailer but cant understand the JNls they did for a previous Qtr.   They paid VAT on purchases therefore these were split cost net  of VAT to purchases 5000 and VAT to VAT on Purchases 2201.   Sales were all keyd gross to sales a/c .  VAT on sales has been calulated using the apportionment rules.  I would then think you would need to DR sales 4000 and CR VAT on Sales 2200, as this is how it would have been recored if the VAT had been split out at the point of sale.  However they have adjusted Purchases !  Can anyone help please ?

• Lindsay
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• # 77473
• Mon 05 Dec 2011 02:23 PM

Hi Lindsey, As nobody else has had a go at your question I'll make an attempt. Your purchases would be split resale and non resale so your proportions are calculated only on goods received for retail sales in the tax period. The non retail purchases are accounted for tax purpose outside of your scheme 1. The output tax you calculated for scheme 1 together with the other amounts of output tax are then added together.  For your non cost of sales purchases and Vat you could create new N/c's. 
Hope this helps
Tim 

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• # 77479
• Mon 05 Dec 2011 03:32 PM

Thank you - I understand your comments except the last line ! So I calculate
the VAT due to HMRC on sales ( under apportionment) and DR a new sales account
and CR VAT on sales or do I need a separate VAT account as well ? As I had
previously recorded all sales as Gross I would think I need to reduce the sales
into Net sales and VAT ( as I would have done if VAT had been calculated at the
point of sale>

• Lindsay
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• # 77483
• Mon 05 Dec 2011 04:58 PM

Maybe my wording is confusing. I meant that your goods purchased not related to retail sales could have a new n/c as they are not part of apportionment scheme 1. 
The calculation for VAT in a tax period  using scheme 1  

(a) Total of DGT for the tax period

(b)Total up costs including  vat of all goods received for retail sale at standard rate
    Total up costs including  vat of all goods received for retail sale at lower rate


(c)Total up the cost  including vat for all goods received in the period for retail sale at standrd,lower and zero rates

A x 1/6 x b/c = output tax at 20% standard rate. 

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• # 77486
• Mon 05 Dec 2011 05:39 PM

Thanks Tim , I know I'm being a numpty but I do understand how to calculate the
VAT on sales using the apportionment scheme. It is once I have the figure for
VAT on sales that I am unsure what jnl to make. I need to put the VAT due on
the sales as a CR to VAT Liability and thought I should put the equivalent DR to
sales ( to reduce them to net sales as opposed to gross sales ) Is this jnl
correct ?



Many Thanks for your patience!

• Lindsay
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• # 77540
• Tue 06 Dec 2011 04:20 PM

Hello again,
Sorry missed your last post, been out to sunny Skegness today making a presentation linking Sage 50  to Microsoft Excel and Query demonstrating  pivot chat and pivot tables.
I think this is same as you are saying. Dr SLCA.. Cr Sales with net sales.. Cr VAT with vat amount.

Kind regards
Tim
 

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• # 77627
• Sat 10 Dec 2011 12:26 PM

Sorry for the late reply but my internet has been down!!! Thank you I am happy
now !

• Lindsay
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