*For those of you who might ever wish to calculate VAT at 17.5% without a calculator (or for those who enjoy a bit of mental maths), here’s how: Work out 10% of the net value (by moving the decimal point one place to the left) Half the above answer Halve the answer again Add the [read more]
The VAT Fraction*The VAT fraction of 7/47, is arrived at by converting the decimal fraction of 0.175/1.175 (see the post on Calculating the VAT) to the lowest whole numbers. 7/47 is only the VAT fraction for standard VAT at 17.5% If VAT is at 5%, the VAT fraction would become 1/21 (which is just the whole number [read more] |
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Calculating the Net Amount*In a similar way, if you want to calculate the net amount (the amount before VAT at 17.5% was added on) for a receipt for £18.80, you could do the previous calculation and then subtract: £18.80 – £2.80 = £16. But to do it in one step, more quickly, the calculation would be: £18.80 divided by 1.175 which [read more] |
Calculating the VAT*If you are presented with receipts (usually for, but not limited to, the purpose of claiming expenses) and need to calculate the VAT (at 17.5%) element for a receipt for £18.80: £18.80 divided by 1.175 then multiply the answer by 0.175 which gives you VAT of £2.80 OR mutliply £18.80 by 7/47 (which is commonly referred to as the [read more] |
Birthday*This is not an abandoned blog, however, it’s been very busy recently (not that I am complaining, I love being busy!). We’ve also had a run of family celebrations. * |
Accountants' Jokes*Who says accountants are no fun? Accountants jokes and fun is a blog collection of jokes for and about accountants, blogged by Mark Lee, an accountant himself (although no longer in practice). * |
Double Entry for a Credit Sale II*When the customer eventually pays, the second stage of double entry is as follows: CASH ACCOUNT Debit £200 DEBTORS ACCOUNT Credit £200 Therefore, the two entries in the debtors account will eventually (hopefully!) cancel eachother out. Since, in the first stage 9the actual sale), there was a debit of £200 and in the second stage [read more] |
