CIMAPRA17-BA3-1 Exam - Topic 4 Question 117 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 117
Topic #: 4

Your organization owed VAT of $22,700 at the beginning of the month.

During the month, it sold standard-rated goods with a net value of $600,000. Its purchases and expenses during the same month amounted to $188,000 including VAT. It paid VAT to the Revenue and Customs, of $33,400. The VAT rate is 17.5%

At the end of the month, the balance on the VAT account was:

A$66,300 debit

B$128,200 debit

C$66,300 credit

D$128,200 credit

Show Suggested Answer

Suggested Answer: C

by Holley at Oct 31, 2025, 11:56 AM

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Andrew

5 months ago

I agree with Sara. The calculations show a credit balance at the end.

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Annabelle

6 months ago

I’m leaning towards D. The VAT paid seems higher than what we owe.

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Carole

6 months ago

Wait, how did we end up with a $128,200 credit? Sounds off.

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Sueann

6 months ago

No way, it can't be that high!

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Cathern

7 months ago

I think the balance should be a credit, right?

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Talia

7 months ago

A) $66,300 debit? I don't think so, my friend. Time to break out the calculator.

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Tiera

7 months ago

Haha, I bet the exam writers are having a field day with these VAT questions. Gotta stay sharp!

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Virgina

7 months ago

D) $128,200 debit? Nah, that can't be right. This is making my head spin.

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Florinda

7 months ago

I'm pretty sure the answer is C) $66,300 credit. Time to put my accounting skills to the test!

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Nana

7 months ago

Hmm, looks like a tricky one. Gotta double-check those VAT calculations!

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Britt

8 months ago

I feel like the answer should be a credit balance since we're collecting more VAT than we're paying, but I can't remember the exact figures.

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Freida

8 months ago

If I recall correctly, the output VAT should be $105,000 from the sales, and we need to factor in the VAT paid as well.

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Lea

8 months ago

I think we need to calculate the output VAT from sales and subtract the input VAT from purchases, but I'm a bit confused about the final balance.

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Raul

8 months ago

Sold goods worth $600,000 this month!

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Daniel

8 months ago

The VAT owed at the start was $22,700.

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Anabel

8 months ago

This question is tricky! I think it's about calculating the VAT correctly.

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Lucina

9 months ago

I feel like option C is right. The sales should cover the VAT owed.

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Sharan

9 months ago

I remember we practiced a similar question about VAT calculations, but I'm not sure how to handle the opening balance.

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Tyisha

9 months ago

Ugh, VAT problems are the worst. I'm going to have to really focus to make sure I don't mess this up. Wish me luck!

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Brandon

10 months ago

Alright, time to put my VAT skills to the test. I've got a good strategy for working through these step-by-step. I'm feeling confident I can get the right answer.

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Margot

10 months ago

This seems straightforward enough. I just need to apply the VAT rate to the sales and purchases, then subtract the amount paid to get the final balance. I think I can handle this.

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Blair

10 months ago

Hmm, I'm a bit confused. There are a lot of numbers to keep track of here. I'll need to be really careful to not mix anything up.

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Cherelle

10 months ago

Okay, this looks like a VAT calculation problem. I'll need to keep track of the starting VAT balance, the VAT on sales, the VAT on purchases, and the amount paid to the Revenue and Customs.

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