I am supposed to check invoice and delivery note . In instruction c) I am supposed to answer the question if correct discount has been applied on invoice. Invoice says that 10% discount is applied if payment is made within 10 days. They don't specify when payment will be made so we don't know if discount will be taken or not. At least this is my thinking. If we don't know if discount will be take or not , should we place discounted figures on the invoice or figures before discount ( like the ones from picture) should be placed on invoice ?
Hi Rafal
Can't see the pictures. Please post as attachments and I will have a look. Also need to know which AAT level 2 you are doing, ie AAT 2013 or AAT 2016 plus which training provider you are with and what year text book you are looking at.
AAT exams are still looking at the old discount rules for some of their courses, believe it or not, some have moved onto the new process I think, but need the answers to the above to be able to help you, plus the photos of course.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Rafal Can't see the pictures. Please post as attachments and I will have a look. Also need to know which AAT level 2 you are doing, ie AAT 2013 or AAT 2016 plus which training provider you are with and what year text book you are looking at.
AAT exams are still looking at the old discount rules for some of their courses, believe it or not, some have moved onto the new process I think, but need the answers to the above to be able to help you, plus the photos of course.
thanks for reply Joanne. I am doing AAT 2016. We are using Kaplan 2016 integrated workbook on bookkeeping transactions. I like this book very much. We are doing new rules on discounts which involve discount received day book and discount allowed day book. I found out just before a minute that this exercise from pictures was taken from 2014 BPP mock exam so my whole question doesn't make sense anymore cause it refers to period before changes. Do you think it is possible one can find similiar exercise in 2016 materials? If yes, how this exercise should be solved according to new regulations?
Interestingly, if that is from a 2014 mock question, it's wrong, because the VAT should read £108, not £120. Under the old rules, the VAT would be shown as if the discount had been applied, whether it was subsequently taken or not.
Under the new rules of course, you'd need to know when the invoice was paid as to whether the discount should be applied.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi Rafal
Good to see that the AAT have finally caught up with the actual way things are now being done! Kaplan are usually very good books to learn from as they give you loads of examples in differing formats to try.
The problem you have is that the old books will indeed work on the old basis, so can confuse. There are two ways to deal with this - either dont use them at all (saves on any kind of confusion and would be better given the old method is not, or should not be used in business any more so in real life you will not see it) or learn the old way (just because you can!)
Just to clarify the old method in this example, John is quote right that the VAT should read £108, which I can see you also got right. But the net Im afraid you got wrong and this is where it has confused a few students in the past, and why its not really a good idea to learn the old method now (which would though make any questions that are VAT related across all the modules in the old books redundant).
So - just in case you need it - the NET on the actual invoice remains as it did in the beginning, ie £600 in your question. All you are doing on the old system is calculating a reduced VAT element effectively - what you do is start with the original net £600, reduce it by the amount of the early settlement discount and then work out the VAT (600-10%=£540 x20% VAT = £108.) So then the invoice is net £600, vat £108, gross £708.
To find similar exercises for 2016 might be quite hard in some respects as the 2016 exam structure is fairly new, but I would suggest you try the greenlight tests and mocks on the AAT website, plus consider purchase of some of the AQA2016 standards books - I cannot recommend any specifically because Ive not used them but maybe look at BPP and say Osborne books.
HTH
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi Rafal Good to see that the AAT have finally caught up with the actual way things are now being done! Kaplan are usually very good books to learn from as they give you loads of examples in differing formats to try.
The problem you have is that the old books will indeed work on the old basis, so can confuse. There are two ways to deal with this - either dont use them at all (saves on any kind of confusion and would be better given the old method is not, or should not be used in business any more so in real life you will not see it) or learn the old way (just because you can!)
They still occassionally get things really wrong in the new books as well Joanne.
When the stamp duty bandings changed I had a new study text that still used the old method to calculate it out. I've also seen cases where the correct annual changes are applied to the tax tables at the start of the text but then last years questions and answers are reprinted unamended. Or even cases where questions have been updated but the answers have not.
It can be seriously frustrating although when you work out that you calculated something correctly and the book got it wrong it certainly drives home the learning and gives you a bit of a sense of rightousness which is generally beaten out of you by the next question in the text.
A key thing to get used to doing is when you buy a study text ensure that you sign up to the website as that will give you (eventually) the fixes to your text. On paper P2 I remember having 22 A4 pages of text updates that I went through stapling into the study text which ended up looking more like an overstuffed filofax.
I do sometimes wonder whether some errors are included on purpose as the same errors on occassion occur every year. It certainly works in ensuring that you both know your stuff and learn to question yourself.
__________________
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.
Ive seen some interesting howlers in the books, but didnt want to scare Rafal off.
Rafal - that offer still stands - sling your question on here if you get stuck, plus the answer you think it is (and even the model textbook answer if you want) and someone will wander by and help Im sure.
Agree with Shaun that the key with the books is to sign up to the providers website - if you go on 'My Kaplan' with your login and upload the book (there should be a sticker on the book telling you how to do this, or online - you need the ISDN number from the book) then the site will show you what adjustments you need to make. But, yes bear in mind these are only the ones already picked up by folk so might not be all of them.
Agree it certainly tests you and makes your learn better, although not after having made you wonder what the hell you are doing, doubt yourself and go round in circles a few times!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
sorry Shaun and John, I forgot to thank you guys for your replies. I promise I won't forget next time. Thanks Joanne for reminding me about Shaun and John.
-- Edited by rafapak on Friday 4th of November 2016 06:29:37 PM
