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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

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Question 19

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.png

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%

114 rated

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%

104 rated

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%

101 rated

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%

120 rated

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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