Mock assessment question
Joannawang
Registered Posts: 3
in Indirect Tax
Hi everyone, I've got a question from mock sample 1 of undetected tax, hope I can get some help here. So for task b, my understanding is we should take vat of van out of sales first as the business recorded gross sale in daybook. So I worked it as (137591.16-1040)*0.2+1040=28350.23, however AAT answer is simply 27518.23+1040. How come?
0
Comments
-
awww the pics didn't show. how to do pic here? I will just type.
a business has a sales of £137591.16 from daybook, and vat on sales is £27518.23 in vat account. the business sold a van of £6240, which includes vat of £1040. they recorded the gross in the sales account and made no entry in vat account. later they decided to correct the error. The question asks what would be in box 1 after necessary corrections to the ledge accounts have been made.0 -
If the gross Amount is entered in your sales account you need to debit sales and credit vat thus adding the 1040 to your vat on sales (the vat your paying to hmrc) balance of 27518.23.
On a vat return it would need deduction from box 6 and adding to box 1.
Hope that helps0 -
thank you iannieloo0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership