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Using the information given on the invoice extract below complete the three blank spaces - Junior Cycle Business Studies - Question 4 - 2019

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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)TradediscountSubtotal = Total \, (excluding \, VAT) - Trade \, discount

Substituting the values:

Subtotal=27,0002,700=24,300Subtotal = 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×(23100)VAT = Subtotal \times \left(\frac{23}{100}\right)

Substituting the value of the subtotal:

VAT=24,300×0.23=5,589VAT = 24,300 \times 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+VATTotal (Including \, VAT) = Subtotal + VAT

Substituting the values:

Total(IncludingVAT)=24,300+5,589=29,889Total (Including \, VAT) = 24,300 + 5,589 = 29,889

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