Invoicing Flashcards
What is the book of prime entry
Where the business trans initially get recorded
What will the books or prime entry include?
Sales day book, sales returns day book, purchase day book, purchase returns day book, discounts recieved day book, cash book, petty cash book
How to work out VAT from the gross amount
£120 / 6 = £20 VAT OR £120/120 x 20 = £20
How to work out vat from net amount
£120 plus vat = £10 x 20% = £24
Or
£120 x 20/100 = £24
How to calculate the gross amount from the vat amount
£24 / 20 x 120 = £144
What the percentage of selling price including vat?
120%
What’s the percentage of vat?
20%
What’s the percent of net amount?
100%
What do you do with invoices?
Enter them into the sales day book and total at end of week
What do you do when sales book have been completed ?
Move the totals to the ledger account
What should you check when a customer pays you?
They have paid correctly, not over paid or under paid
What will the customer send alongside payment.
A remittance note
What does a remittance note show?
The invoices and credit notes being settled
Why should prompt payment discount and amounts be checked ?
To avoid disputes later
What happens when a customer pays?
Money received, ledger updated and discounts accounted for
