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%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
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
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
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
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
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
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
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.
Join the Junior Cycle students using SimpleStudy...