Chapter Three Flashcards
1
Q
Should you round VAT up or down on invoices
A
Down
2
Q
Should you round vat up or down on credit notes?
A
Either
3
Q
Is trade discount included before or after the net
A
Before
4
Q
If bulk and trade discount is offered together, which is worked out first
A
Trade first
5
Q
Is bulk offered before or after net
A
Before
6
Q
Is prompt payment before or after net
A
After, a percent of gross amount is deducted if buyer meets terms
7
Q
How can you apply a PPD?
A
Creating a credit note showing the amount and VaT refunded
8
Q
Where are credit notes recorded
A
The discounts allowed book
9
Q
What’s recorded in the discounts recieved day book?
A
Credit notes, often PPD
