Complete the following extract from an invoice:
€
Total (excluding VAT) 2,800.00
Trade Discount 30%
Subtotal
VAT 23%
Total (including VAT) - Junior Cycle Business Studies - Question 19 - 2017
Question 19
Complete the following extract from an invoice:
€
Total (excluding VAT) 2,800.00
Trade Discount 30%
Subtotal
VAT 23%
Total (including VAT)
Worked Solution & Example Answer:Complete the following extract from an invoice:
€
Total (excluding VAT) 2,800.00
Trade Discount 30%
Subtotal
VAT 23%
Total (including VAT) - Junior Cycle Business Studies - Question 19 - 2017
Step 1
Trade Discount 30%
96%
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Answer
To calculate the trade discount, we take 30% of the total amount excluding VAT:
Trade Discount = Total (excluding VAT) × Trade Discount Rate
Trade Discount = €2,800.00 × 0.30 = €840.00
Thus, the trade discount is €840.00.
Step 2
Subtotal
99%
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Answer
The subtotal is found by subtracting the trade discount from the total excluding VAT:
Subtotal = Total (excluding VAT) - Trade Discount
Subtotal = €2,800.00 - €840.00 = €1,960.00
Thus, the subtotal is €1,960.00.
Step 3
VAT 23%
96%
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Answer
To calculate the VAT, we take 23% of the subtotal:
VAT = Subtotal × VAT Rate
VAT = €1,960.00 × 0.23 = €450.80
Thus, the VAT is €450.80.
Step 4
Total (including VAT)
98%
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Answer
The total including VAT is the subtotal plus the VAT:
Total (including VAT) = Subtotal + VAT
Total (including VAT) = €1,960.00 + €450.80 = €2,410.80
Thus, the total including VAT is €2,410.80.
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