Hi all, i have just started level 1 & 2 bookkeeping and i am stuck and confused!..so i was wondering if you kind people could help.
First this is to do with VAT so i was wondering if the following would be right for input and output VAT.....
Sales Day book - Output Sales Return book - Input Cash Sales - Output Purchase day Book - Input Purchase return book - Output Cash Purchases - Input Petty Cash - Input
Also sorry alot of info i need.......the VAT form boxes 6 & 7
6 Output sales this is the sales figures exc vat? i take it this would be
Sales Day Book Cash Sales
7 Input purchases Purchase day book Petty Cash
What i am confused with is the Sales Return and Purchase Return....do i for instance take off the purchase return figure off of the Purchase day, and the same with the sale return too do i deucted this from the Sales day?.......
i am doing the IAB and to be honest this is just level 1!, we havent really covered this in full and also i have to do a VAT control account yet i discovered this is Level 2 yet am having to do this as part of an assignment for level 1!......they only briefy showed a VAT return but never explained all the boxes.
Yes you are correct in your assumptions with regard to input and output tax. Output tax is all sales, cash or otherwise and is taken from the sales day book, sales returns day book and cash book. Input tax is all purchases and is taken from the purchases day book, purchases returns day book and cash book.
Box 6 is all sales net of VAT less any sales returns and Box 7 is all purchases net of VAT less any purchases returns. The VAT on sales will be minus the VAT on sales returns and the same with VAT on purchases.
With regard to control accounts I thought they would be Level 2 as well, although I studied with the ICB, so IAB may be different. Are you home studying with a provider? If so, I should confirm with them.
Thanks for your help, and yes i am doing a home study course with a provider - Skills4success, and i am going to make the point that the VAT control account is not in level 1, i am doing both so have both manuals and found the VAT control under level 2!, but its defiantley part of the assignments for level 1 i have double checked.
Sorry to just randomly appear, I've been using these forums for a while but never actually posted anything as I find the answers I need from browsing old posts! :)
Anyway, Heidi, I am also currently doing Level 2 with IAB (sat Level 1 back in June) and was wondering if you don't mind me contacting you about problems i'm having? I get so confused with double entry :( Would be good to be in contact with someone who is studying the same stuff...
Also, the course i'm doing is with Skills4Success which truthfully, I didn't find very well written at all. I ordered a book from the IAB website which was £25 to help explain some things in more detail and honestly it is better than the entire course. So I'd definately recommend that :)
Anyway my e-mail address is sweet_mosquite@hotmail.com, look forward to hearing from you!
Hi, no problems in contacting me i need all the help i can get too, though i have only just started level 2 myself, doing both exams in January!!!.....my email address is tucsonbuild@btinternet.com.
