Using the information given on the invoice extract below complete the three blank spaces - Junior Cycle Business Studies - Question 4 - 2019
Question 4
Using the information given on the invoice extract below complete the three blank spaces.
| | € |
|--------------------|---------|
| Total ... show full transcript
Worked Solution & Example Answer:Using the information given on the invoice extract below complete the three blank spaces - Junior Cycle Business Studies - Question 4 - 2019
Step 1
Calculate Subtotal
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Answer
To calculate the subtotal after applying the trade discount, subtract the trade discount from the total excluding VAT:
Subtotal=Total(excludingVAT)−Tradediscount
Substituting the values:
Subtotal=27,000−2,700=24,300
Step 2
Calculate VAT
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Answer
To calculate the VAT, apply the VAT rate of 23% to the subtotal:
VAT=Subtotal×(10023)
Substituting the value of the subtotal:
VAT=24,300×0.23=5,589
Step 3
Calculate Total Including VAT
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Answer
To find the total including VAT, add the VAT amount to the subtotal:
Total(IncludingVAT)=Subtotal+VAT
Substituting the values:
Total(IncludingVAT)=24,300+5,589=29,889
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