Home For AAT student members AQ 2016 Advanced Diploma in Accounting Final Accounts Preparation

AAT ASSESSMENT 2 TASK2

AmnaAmna Registered Posts: 8
Hi, can anyone help me to explain the AAT ASSESSMENT 2 TAKS 2
SRV 20% APPLIES TO ALL SALES
the trader sells an item to a customer 405 including VAT calculate the original cost of the item to the trader, excluding VAT?
Thanks

Comments

  • Pian32Pian32 MAAT Posts: 337
    So you have a standard rate of VAT applied and the amount including VAT is 405. You want to find the amount excluding VAT.

    AMount including VAT = (1+ VAT rate) * Amount excluding VAT

    Excluding VAT = 405/1.2
    =337.50

    The question asks for the original cost which makes me think there is more to the question that hasn't been posted such as a mark up/margin required. As this would just be the sale price excluding VAT.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Planned for Dec 2020
    F6- Passed Sep 2020
    F7
    F8
    F9
  • AM02AM02 Registered, AAT Student Posts: 2
    Ive had the same issue with this question. I put the answer as £337.50 but when you check the answers, it says the answer is £250?? is this an error?
  • AM02AM02 Registered, AAT Student Posts: 2
    I've just had a relook at the question from the beginning. It does state the business sells it goods at a mark up on cost of 35%. so if we work out the mark up of 35% to 405.
    405 divided by 1.35 this give us £300.00. then work out the cost ex vat
    300 divided by 1.2 which gives us £250.00
    Pian32
  • AmnaAmna Registered Posts: 8
    thanks
  • AmnaAmna Registered Posts: 8
    if inventory increase 560 and the total value of purchases given 22000, mark up 40%
    how to calculate the value of purchases, sale and closing inventory?
  • Pian32Pian32 MAAT Posts: 337
    So theres a little bit of information missing. You'll need the opening inventory.

    CoS = 22000-560 = 21440
    Sales = 21440 *1.4 = 30016
    Closing Inventory = Opening Inventory + 560
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Planned for Dec 2020
    F6- Passed Sep 2020
    F7
    F8
    F9
  • AmnaAmna Registered Posts: 8
    thanks
Sign In or Register to comment.