Forums › Other Accountancy Qualifications Forums › AAT Unit 30 Questions Sales receipts

- This topic has 6 replies, 2 voices, and was last updated 12 years ago by Sasha;.

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- April 10, 2012 at 8:53 pm #52157
Hi,

I`m doing Unit 30 questions for AAT and I`m unsure on answer in Sales Receipts question 11.

I was counting on my own way as follow.

NET + VAT = GROSS1.175 NET = 933

NET = 794.04you can check it easily by 794.04 + (17.5% x 794.04) = 933

So I persume NET is 794.04

then we`re taking 5% discount from NET

and discounted NET is 754.34

then we have to add VAT @ 17.5% = 886.35Can anyone tell me if there is a mistake in answer? Or is it me thinking wrong way as there in option of 886.35 to select?

Thank you in advance for answer.April 11, 2012 at 8:31 am #96159The answer explains how to do it :

This is quite a trick question! Remember that VAT is charged on the net figure after discount, whether or not discount is actually taken. The easiest way to check in practice, would be to look at the breakdown on the invoice!

(basically you need to know the net to get the vat, rather than the gross)

VAT = Net x 95% x 17.5%

Gross = Net + (Net x 0.95 x 0.175)

= Net + (Net x 0.16625)

= 1.6625 x Net

Net = Gross /1.16625

= 933.00/1.16625

= £800.00

VAT = 0.175 x 0.95 x £800

= £133.00Payment required = (0.95 x £800.00) + £133.00 = £893.00

Hope this helps

April 11, 2012 at 8:35 pm #96160Hi,

I`ve seen answer for it but still unsure if is right.You can check that easily : If NET £800 + VAT 17.5% = £940

(in question was GROSS £933 where 17.5% VAT included and this made me thinking this may be wrong answer as NET for it would be £754.04 then we take a 5% discount and add VAT; gives result of £886.35 ) Take a look on my calculation again and let me know what you`re thinking.April 13, 2012 at 2:59 pm #96161The calculation from net as 800 to gross = 933 doesn’t make sense. I’ve been looking at this for a little while, and your probably correct.

An easier way to do this would be. Say £120 Gross, (VAT is 20%) To find net you say that gross £120 = 120% and to find net which is 100% you would then 120/120 = 1 x 100 = 100 Net.

So using this formula. (Rough quick calculations)

**933/117.5 x 100 = 794.042**

Net = 794.042Take away 5%. Net – 5% = 794.042 – 39.7021 = 754.3399

+ VAT @ 17.5% 754.4 + 132.02 = 886.42

Which is very near your answer. We can only assume that the gross was supposed to be 940, otherwise the calculations become much harder for what was supposed to be a quick question.

Hope THIS helps more than my last post and thanks for posting 😀

I’ve realised! The £133 in the question is £800 + £133 = £933!! Looks like an easy error to make

( Please read @admin. Regarding the Sales Receipts Question 11 – Gross should be 940 and the calculation is wrong. Check out the formula I use, it’s perhaps a better example to show in the answer! )

Gross 940 as 117.5%

Gross / 117.5 x 100 = NET940 / 117.5 = 8

8 x 100 = 800

Net = 800800 – 5% discount

800 – 40 = 760

760 = New Net760 + 17.5% VAT = Answer.

760 + 133 = 893April 16, 2012 at 6:45 pm #96162Hi Sasha,

Thank you for your post.

My first answer was right. Take a look on your counting again 🙂

933/117.5 x 100 = 794.042

Net = 794.042 = 794.04Take away 5% = 754.338 = 754.34

+ VAT 17,5%

754.34 + 132.01 = £886.35but this is not the case.

Thank you you resolved my doubt.April 16, 2012 at 6:52 pm #96163Hi,

Have you got priv I can send my sugestions as I found few more it didn`t comply with my calculations ?@April 18, 2012 at 1:48 pm #96164Not sure if I can through the website?

I have email though - AuthorPosts

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