aat receipts, payments and initial trial balance book

Kay

hi - i have just started this course last week, i am working thro the workbook and have noticed some of the tasks have incorrect answers?? has anyone else noticed this. e.g. activity 51 - 585.40 has vat of 102.44 - but the answer states this is incorrect and should be 99.37 and that 36.63 vat is correct on 213.60 (s/b 37.38)???? I have noticed at least 3 other errors on differenct subjects!!!

Claire321

Hi, I'm not sure which book your using - but does it state in the question anything about a settlement discount for paying the invoice within a certain time?

For example it looks like in your first example £585.40 if say there was a 3% discount for prompt payment:-
£585.40 - 3% (£17.56) = £567.84
VAT would them be 17.5% of £567.84 = £99.37

Where a settlement discount is offered for prompt payment (within a specified time) the VAT is calculated on the discounted amount - even if the discount is NOT actually taken