13.7A Robles & Co is a VAT-registered business. During the quarter just ended, it bought goods and services to the value of £46,020 excluding VAT, and its sales were £61,548 including VAT. All of Robles & Co's sales are subject to VAT at 20 per cent. However, only two-thirds of the goods and services it buys are subject to VAT at 20 per cent. The other third are either zero-rated or exempt. After preparing its VAT return for the quarter just ended, how much must Robles & Co pay to HMRC?

13.7A Robles & Co is a VAT-registered business. During the quarter just ended, it bought goods and services to the value of £46,020 excluding VAT, and its sales were £61,548 including VAT. All of Robles & Co's sales are subject to VAT at 20 per cent. However, only two-thirds of the goods and services it buys are subject to VAT at 20 per cent. The other third are either zero-rated or exempt. After preparing its VAT return for the quarter just ended, how much must Robles & Co pay to HMRC?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6P

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