How do you deal with food & drink for a restaurant business ?
I have a figure for sales and one for Bar and restaurant
Then my purchases figure and Bar and resturant figure
Im aware that most foods and drink are zero rated but in a restaurant it is charged Now would you claim the VAT on the sales but not claim it on the purchase of the food and drink?
Ive brought the revision kit and am stuck on this bit.
What I have is as follows -
Vat on sales 11020 Vat on sales restaurant 5440 Vat personal use 60 total 16520
Vat on purchases 3036 vat bad debt 100 Vat on petty cash 80.29 total 5464.29
so for bo 5 on tax return I made it 10873.71
But the Answer page makes it 7006.71
So now im slightly confused, I must be dealing with the food and drink wrong ?
Any ideas
Michelle
-- Edited by Mlawson on Thursday 11th of July 2013 06:13:33 PM
Is there something missing from your question above as 3036, 100 and 80.29 come to 3216.29, not 5464.29?
I can see that there are adjustments to be made but its just that the question seems incomplete.
Can you write out the question exactly as it appears please, or if its online point us to where we can see it in original form, or even scan it and include it as an attachment.
many thanks,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
somethings not right with that final figure (In the last Kaplan ACCA paper P2 text there were 13 pages of corrections published on their site!).
Actually, good point. have you logged into Engage using the reference code inside your book? (I assume that they have that for ICB books?)
If there's nothing on engage or you don't have an access code, What does the answer say in relation to boxes 3 and 4?
I would almost bet that the figure that is giving you grief is not the result of subtracting 4 from 3.
Actually, I wouldn't mind knowing what figures it has in those boxes.
kind regards,
Shaun.
p.s. When you first register ownership of a book to your engage account it can take up to qa couple of days to get online access to the additional resources and corrections.
p.s.2. At the moment, in the absence of any corrections to the originating data, I'm thinking that £10,873.71 is correct.
p.s.3 you couldn't give me the ISBN of your version of the book could you so that I can purchase a copy in case you or anyone else has any further difficulties.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The book I have is Manual bookkeeping Level 2 revision kit by kaplan publishing, the IBSN 0978-0-85732-780-2. I have only brought the book this week is was published in2012 so its not an old book.
I will post the answer page tonight when i'm home from work.
its as I suspected. Someone at Kaplan can't subtract.
£16,520 - £5646.29 = £10,873.71.
Its a mistake on their part not yours which at this level is pretty unforgivable as students assume that the books are correct and that they are wrong.
That said, how much better do you know this now that you have spent hours beating yourself up over it.
The other thing that frustrated me with the question was the in built assumption that all pruchases including petty cash have VAT and the VAT is at the same rate.
The petty cash line should really have been accompanied by a further line stating that VAT receipts at standard rate were available for all petty cash expenditure.
Well done for getting the correct answer despite the book Michelle, You had everything right including box 5.
kind regards,
Shaun.
p.s. many thanks for the ISBN link. I've added it to my Amazon basket for the next time that I buy another batch of books.... I really must work harder to sustain this serious book habbit that I've got, lol.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
also, did you get the total purchases to £27,731.46 rather than £27,731.45?
I know that its only a penny and in the real world you would only be entering whole numbers in that box anyway but just wondered if you were a penny astray there as well?
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Even though it gave you hassle because it was wrong you were right and trying to discover your non existant error has absolutely ingrained that knowledge going forwards.
Any time you get stuck with anything just post on here and we're always here to help.
How many questions are there in the book (it doesn't seem very big at 0.8cm).
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
