VAT Calculation

MandyJayne
MandyJayne Registered Posts: 2
in Bookkeeping Transactions
Hi wonder if someone was able to help me with this. I have been working on the calculations for VAT and I was under the impression that you have to round down but then when I checked the answers I’m wrong with the calculation I’ve done.

E.g - 9.53 inc VAT

So I have calculated 9.53 / 1.20 = 7.9416666
So I have entered the answer as 7.94 but when I have checked the answers it says 7.95

Can anyone help on where I am going wrong please?

Comments

  • Pian32
    Pian32 Registered Posts: 474 Dedicated contributor 🦉
    You probably wouldn't be penalised for rounding.

    However what they've done is 9.53/6 = 1.588333 rounds to 1.59 then 1.59*5 =7.95

    I don't think you'd be marked wrong in the exam for this.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL -
    SBR - Passed Mar 22
    ATX - Passed Dec 21
    APM - Passed June 22
  • MandyJayne
    MandyJayne Registered Posts: 2
    Thankyou so much for your help much appreciated =)

Categories

Privacy Policy