ernan do is frader urcha ses invent ory at

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
please answer all the parts within 30 minutes. make sure you answer all the parts of the question else i will give negative ratings.
Fernando is a trader he purchases inventory at cost
of 50,500 (inc. VAT) and incurs the expense of
8,000 (Inc. VAT) and sells the inventory for 95,000
(Excl.VAT).
Required:
a. If it standard rate (20%) How much the trader will pay
to HMRC or the HMRC will pay for him ?
b. If it Zero rat (0%). How much the trader will pay for
HMRC or HMRC will pay to Fernando ?
it's accounting taxation based on UK methods
Transcribed Image Text:Fernando is a trader he purchases inventory at cost of 50,500 (inc. VAT) and incurs the expense of 8,000 (Inc. VAT) and sells the inventory for 95,000 (Excl.VAT). Required: a. If it standard rate (20%) How much the trader will pay to HMRC or the HMRC will pay for him ? b. If it Zero rat (0%). How much the trader will pay for HMRC or HMRC will pay to Fernando ? it's accounting taxation based on UK methods
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education