Green Light VAT Returns Question

mitch1
mitch1 Registered Posts: 5 New contributor 🐸
Hi all,

I am completing the green light tests in preparation for my TPFB exam this week on Thursday. On the VAT return section, I keep getting this question which I don't understand:

It is your first day as the bookkeeper for a VAT registered business. The previous bookkeeper has left suddenly and you have to complete the VAT Return which is due by the end of the week. You have extracted the following VAT data from the accounting records: Sales daybook £38,000, Sales returns daybook £1,750, Purchases daybook £16,890, Purchases returns daybook £819, Cash sales £1,400 and Bad debt relief £215.

The balance on the VAT account is £X. The amount to be included in Box 1 of the VAT return is £X. The amount to be included in Box 4 of the VAT return is £X. The amount of VAT payable to HMRC on the VAT return is £X.

If someone could help me with a solution to this question, that would be greatly appreciated. Thank you.

Comments

  • anony123
    anony123 Registered Posts: 402 Dedicated contributor 🦉
    In Box 1 is the sales and sales return VAR ONLY
    IN box 4 it is the purchases and the purchase returns VAT only
    (Take the sales and minus sales return and the same with purchases). Box 4 includes bad debt relief
    And then box 5 will be the sales subtract the purchases. (VAT only). If sales bigger it is due but if purchases are bigger than HMRC have to pay the business back.
    Hope that helps.
  • anony123
    anony123 Registered Posts: 402 Dedicated contributor 🦉
    I think the cash sales goes in box 1 haha did this at the beginning of the year
  • anony123
    anony123 Registered Posts: 402 Dedicated contributor 🦉
    Also, depends if it is the VAT only, net or gross.
  • anony123
    anony123 Registered Posts: 402 Dedicated contributor 🦉
    Send me the actual question
  • brightsky18
    brightsky18 Registered Posts: 41 Regular contributor ⭐
    Hi,
    Good luck with your exam.
    The given figures goes into Vat control account too as well as Vat Return.
    Vat return figures already explained by @anony123
    Vat control account, keyin the figures as to debit and credit side and work out
    If payable or reclaimable.

    Make a comparison as to whyVat return figures and Vat control account figures vary
    And do the conclusion accordingly.

    Be mindful of the words ex vat or including VAT.
    it seems to me question you have posted is incomplete.




  • anony123
    anony123 Registered Posts: 402 Dedicated contributor 🦉
    Mitch can you send the photo of the question.
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