exam question

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi <BR><BR>On the June 2005 paper for foundation, there was a question which said.......if your VAT account showed a debit balance, what would this indicate? what did you all put? <BR><BR>I thought the answer was that the company had made more purchases than sales, and as you don't pay VAT on purchases, i wrote there was nothing owed to VAT man? Don't know if this is right or not.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    exam question

    To an extent. A credit balance would mean you are due a repayment from revenue and customs.<BR><BR>Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    exam question

    Do you think my answer will lose me some marks?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    exam question

    I'm sorry, I couldn't possibly say, I've never marked exams.<BR><BR>Don't panic, there's nothing you can do until the results come and if you've done okay on the rest of the paper, I'm sure you won't fail on that!<BR><BR>Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    exam question

    Hi<BR><BR>A debit balance means the VAT man owes you, since VAT on inputs/purchases has exceeded that on outputs/sales.<BR><BR>A credit balance would mean you owing the VAT man.<BR><BR>Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    exam question

    Thank you so much Neil, thats what I thought. I put that there was nothing to pay to the VAT man, which going by your reply is half right, but what I should also have added then was that there was money to be claimed back. Oh well, at least i was on the right track, so I should have picked up a few points, - better than getting it completely wrong I guess!<BR><BR>Many thanks for your reply, I started to feel quite worried about getting the results, but as I think this was the only question I may/may not have gone wrong on, I hope I will still have done OK and be able to progress onto intermediate.<BR><BR>Lyn.

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