Sir in a question following 2 purchases were mentioned
1)Std exp of 28000
2) Purchase of machinery 24,000
Now how to decide whether the amt is vat inclusive or exclusive...
In answer these are treated exclusive thus ×20%
However shouldn't these expenses be inclusive since expenses paid would be on VAT inclusive invoices?
Ask the Tutor ACCA TX-UK
Expenses?? VAT inclusive/ex.
Have you read the question carefully as there must be a note saying whether amounts are VAT inclusive or exclusive
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