VAT Flashcards
Double entry for sale including VAT
DR Bank
CR VAT
CR SALES
Double entry for sales returns including VAT
CR Bank
DR VAT
DR SALES
Double entry for purchase including VAT
DR Purchases
DR VAT
CR BANK
Double entry for purchase returns including VAT
DR Bank
CR VAT
CR Purchase returns
Irrecoverable debts
debit
VAT on discount allowed
debit
VAT on discounts received
credit
Double entry for discounts allowed
DR Discounts allowed
Dr VAT
CR Receivables
Double entry for discounts received
Debit Payable
Credit VAT
Credit Discounts received
Meaning of prompt payment discount
A discount given if supplies are paid for earlier than discussed date.
Bulk discount
Discount after amount bought exceeds a certain quantity.
Gross Pay
Wage received for amount of work done
Net Pay
Amount an employee will be paid after appropriate deductions have been made.
PAYE Scheme
The Pay As You Earn system, often shortened to PAYE, is basically the process put in place that allows us to pay our income tax and National Insurance. Your employer automatically calculates how much you need to pay, and takes it out of your pay packet before you get it.
National Insurance
Is a sate scheme run by HM Revenue which pays or certain Economic benefits.
