extra questions unit 7

taskey

FAILED my extra questions and am really confused now, as having looked at my answers and my books, i cannot see where i went wrong.

the question was sales in 2007 were £2,486,700 and in 2006 were £2,245,600 what was the % increase?

i put 2486700-2245600 = 241100

241100/2245600 = 0.1 x 100 = 10%

where did i go wrong?

also on bad debt relief on the vat return how do i do that? i did

output tax box 1 and 3 as same amount
input tax less bad debt relief box 4
box 3 less box 4 = box 5
sales exclusive of vat box 6
purchases exclusive of vat box 7


these are the two points my tutor has asked me to revise again, so i presume the next couple of questions are on the above.

can anyone point me in the right direction.

thanks

tracy

crispy

Hi,

1. Maybe the question stated the % increase to 1 decimal place. In which case the answer would be 10.7 %

2. Bad Debt VAT relief I would of included in Box 4 (Inputs), not taken away.

Marga

crispy wrote: »

Hi,

1. Maybe the question stated the % increase to 1 decimal place. In which case the answer would be 10.7 %

2. Bad Debt VAT relief I would of included in Box 4 (Inputs), not taken away.

hi

i would have done this too ....

taskey

ok, thanks for that, will scour the books again in the hope there might be a bit of a lightbulb moment.

Tracy

coojee

crispy wrote: »

Hi,



2. Bad Debt VAT relief I would of included in Box 4 (Inputs), not taken away.

Yes, you have to add on the bad debt not take it away so that's cleared that one up. I can't think why your percentage increase was marked wrong, even if it's a dp issue it should usually still be marked correct.

taskey

coojee wrote: »

I can't think why your percentage increase was marked wrong, even if it's a dp issue it should usually still be marked correct.

i know, i will just have to have another go and see what happens next

Tracy

taskey

just a quick update - i passed this unit - YEEHAAA

the problem i had was when i was dealing with the bad debt, i was doing it as a total, not the VAT % amount DUH!!

i answered further questions over the phone with my tutor and the internal verifier on speakerphone and passed the questions there and then.

just waiting for my certificate now for intermediate.

2 more sims then all done

Tracy

Rinske

Congratulations, well done you!

What sim have you lined up next?

taskey

thanks, i have got cash management and audit lined up - both books are on my desk and both to be honest are boring me rigid lol. i used to do cash management but with no knowledge of why i did what behind it all - now i am beginning to realise it all.

Tracy