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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:
Suggested Answer: C
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28 comments · newest first
AN
Andrew
7 months ago
I agree with Sara. The calculations show a credit balance at the end.
AN
Annabelle
8 months ago
I’m leaning towards D. The VAT paid seems higher than what we owe.
CA
Carole
8 months ago
Wait, how did we end up with a $128,200 credit? Sounds off.
SU
Sueann
8 months ago
No way, it can't be that high!
CA
Cathern
9 months ago
I think the balance should be a credit, right?
TA
Talia
9 months ago
A) $66,300 debit? I don't think so, my friend. Time to break out the calculator.
TI
Tiera
9 months ago
Haha, I bet the exam writers are having a field day with these VAT questions. Gotta stay sharp!
VI
Virgina
9 months ago
D) $128,200 debit? Nah, that can't be right. This is making my head spin.
FL
Florinda
9 months ago
I'm pretty sure the answer is C) $66,300 credit. Time to put my accounting skills to the test!
NA
Nana
9 months ago
Hmm, looks like a tricky one. Gotta double-check those VAT calculations!
BR
Britt
10 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.
FR
Freida
10 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.
LE
Lea
10 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.
RA
Raul
10 months ago
Sold goods worth $600,000 this month!
DA
Daniel
10 months ago
The VAT owed at the start was $22,700.
AN
Anabel
10 months ago
This question is tricky! I think it's about calculating the VAT correctly.
LU
Lucina
11 months ago
I feel like option C is right. The sales should cover the VAT owed.
SH
Sharan
11 months ago
I remember we practiced a similar question about VAT calculations, but I'm not sure how to handle the opening balance.
TY
Tyisha
11 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!
BR
Brandon
12 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.
MA
Margot
12 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.
BL
Blair
12 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.
CH
Cherelle
1 year 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.
CH
Chantay
7 months ago
So, we paid $33,400 to Revenue. What’s the final balance?
YO
Yolando
7 months ago
Sales VAT should be $105,000.
LE
Leana
7 months ago
Right, then we add VAT from sales.
DE
Delsie
7 months ago
This is tricky. Starting with $22,700 owed.
TA
Tanesha
11 months ago
Don't forget the purchases VAT, that's $33,000.