Complete the extract from the invoice below, using the following data:
Total (Ex - Junior Cycle Business Studies - Question 15 - 2004
Question 15
Complete the extract from the invoice below, using the following data:
Total (Ex. VAT) €1,000; VAT 21%; Trade Discount 20%.
Total (Ex. VAT)
€
Trade Discount
€
VA... show full transcript
Worked Solution & Example Answer:Complete the extract from the invoice below, using the following data:
Total (Ex - Junior Cycle Business Studies - Question 15 - 2004
Step 1
Total (Ex. VAT)
96%
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Answer
Given that the Total (Ex. VAT) is €1,000, we will enter this value directly in the corresponding field.
Step 2
Trade Discount
99%
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Answer
The Trade Discount is calculated as 20% of the Total (Ex. VAT). Therefore:
extTradeDiscount=0.20imes1000=€200
This value will be entered in the Trade Discount field.
Step 3
VAT
96%
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Answer
VAT is calculated as 21% of the Total (Ex. VAT) after applying the Trade Discount. First, we find the new total after discount:
extTotalafterDiscount=1000−200=€800
Now, we can calculate the VAT:
extVAT=0.21imes800=€168
This value will be entered in the VAT field.
Step 4
Total (Incl. VAT)
98%
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Answer
Finally, the Total (Incl. VAT) is calculated by adding the VAT to the Total after Discount:
extTotal(Incl.VAT)=800+168=€968
This value will be entered in the Total (Incl. VAT) field.
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