Using the information given on the invoice extract below, complete the three blank spaces - Junior Cycle Business Studies - Question 3 - 2022
Question 3
Using the information given on the invoice extract below, complete the three blank spaces.
| € |
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| Total (excludin... 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 3 - 2022
Step 1
Subtotal
96%
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Answer
To calculate the Subtotal, deduct the Trade discount from the Total (excluding VAT).
The formula is:
Subtotal=Totalext(excludingVAT)−Tradeextdiscount
Substituting the values:
Subtotal=30,000−3,000=27,000
Step 2
VAT (23%)
99%
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Answer
Next, to calculate the VAT, apply the VAT rate (23%) to the Subtotal.
The formula is:
VAT=Subtotalimes0.23
Substituting the value of Subtotal:
VAT=27,000imes0.23=6,210
Step 3
Total (including VAT)
96%
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Answer
Finally, to find the Total (including VAT), add the VAT amount to the Subtotal.
The formula is:
Totalext(includingVAT)=Subtotal+VAT
Substituting the values:
Totalext(includingVAT)=27,000+6,210=33,210
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