Help! Exam tomorrow!!

Cudey

Hi All! Haven't posted on here much at all, but I'm really confused. I'm doing my AP2 tomorrow, and was just doing the CBT4 on the AAT site and i'm baffled by the margin question.

You have:

Purchase = £65,300
Opening Inventory = £5,900
Cost of goods sold = £64,800

First you have to calculate the closing inventory which is fine - it's £6,400. But then it states, the gross sales margin is 40%. Calculate the value of sales.

How has the AAT website come to the answer of £108,000?? I don't get this at all despite looking at my notes! Is this a mistake? Any help will be greatly appreciated!

liveprincess

which question is it in AP2 CBT4? I can't find it?

Cudey

Hey it's 1.2 question B and C

billdoor

For margin, you start with the sales as being 100%.

So you know the margin is 40%, therefore:

Sales = 100%
Cost = 60%
Margin = 40%

So if cost is £64800:

64800/60 = 1080

x 100 = 108000.


As per the above, it was:

Sales = 100%
Cost = 60%
Margin = 40%

Which is:

Sales = 108000
Cost = 64800
Margin = 43200

Good luck with your exam:001_smile:

Cudey

billdoor wrote: »

For margin, you start with the sales as being 100%.

So you know the margin is 40%, therefore:

Sales = 100%
Cost = 60%
Margin = 40%

So if cost is £64800:

64800/60 = 1080

x 100 = 108000.


As per the above, it was:

Sales = 100%
Cost = 60%
Margin = 40%

Which is:

Sales = 108000
Cost = 64800
Margin = 43200

Good luck with your exam:001_smile:

Billdoor - You absolute hero. I read this a couple of hours before my exam, and it came up! First thing I did was write this out. Thanks a lot for your help, I aced the Exam :001_smile:

Whirlwind

Well done!!

Cudey

Whirlwind wrote: »

Well done!!

Thanks Whirlwind :001_smile:

I've got ITX next.... Any advice on this? Is it difficult? I'm starting studying on Saturday and intend to do the exam 10 days later.

Whirlwind

I sat this unit a year ago now, but found it so helpful in understanding the workings behind it all - been completing VAT returns for various companies for years with no problems!!

There is a drop down box with some info provided - struggling to remember what it was. Definitely swot up on completing the actual return, getting the boxes 6 to 9 right.

All the best and let us know how you get on!!

billdoor

Excellent, well done Cudey, glad to be of use.:laugh:

Indirect Tax was my favourite Level 3 module, the most important thing is to get the VAT return right, make sure you understand the boxes. Other than that, know the basics i.e. registration, documents, schemes, sales and purchases within the UK, within the EU and outside of the EU, and errors.

You also get reference material in the exam, as Whirlwind said - I used the BPP book and this material was included in the book so yours may have it also. It basically covers a lot of the study material and you can refer to it in the exam if you need to. Good luck with it.:thumbup1:

Cudey

billdoor wrote: »

Excellent, well done Cudey, glad to be of use.:laugh:

Indirect Tax was my favourite Level 3 module, the most important thing is to get the VAT return right, make sure you understand the boxes. Other than that, know the basics i.e. registration, documents, schemes, sales and purchases within the UK, within the EU and outside of the EU, and errors.

You also get reference material in the exam, as Whirlwind said - I used the BPP book and this material was included in the book so yours may have it also. It basically covers a lot of the study material and you can refer to it in the exam if you need to. Good luck with it.:thumbup1:

Thanks for the info guys. I've had an extremely brief look through my notes, and it doesn't seem too bad. I already have some knowledge of basic VAT bits - including some pointless ones, such as working out whether a VAT number is legitimate using a spread sheet. 10 hard days studying coming up! :001_smile: