AAT ASSESSMENT 2 TASK2

Amna
Amna Registered Posts: 26 Regular contributor ⭐
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

  • Pian32
    Pian32 Registered Posts: 474 Dedicated contributor 🦉
    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- 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
  • AM02
    AM02 Registered Posts: 7 New contributor 🐸
    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?
  • AM02
    AM02 Registered Posts: 7 New contributor 🐸
    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
  • Amna
    Amna Registered Posts: 26 Regular contributor ⭐
    thanks
  • Amna
    Amna Registered Posts: 26 Regular contributor ⭐
    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?
  • Pian32
    Pian32 Registered Posts: 474 Dedicated contributor 🦉
    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- 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
  • Amna
    Amna Registered Posts: 26 Regular contributor ⭐
    thanks
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