Net & Gross

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Ok, I shall appologies already because this should be really basic stuff, but, sat on my own revising for unit 1 simulation i have had a mind block.
When you have net, VAT and gross on a invoice is the net figure before or after discounts. I was thinking it was before eg, the basic price of the goods. How does it work into the sales day book, as the net + Vat then don't equal the gross , is this right?
Thanks, Gem :oops:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Net & Gross

    The Net and VAT should equal the Gross. Basically the Net price is the Gross price minus the VAT - so by that count, it is the price of the goods after any discount is taken.

    Hope this helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Net & Gross

    Thanks, it seems obvious now. I think it was the way the invoice was set out. It had goods total, discount then a space (for me to put in the net figure) then VAT and Gross. I just took the top figure (goods total) and the more i thought the worse i got. Thanks for clearing it up. :)

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