A vendor bought goods for R1 630.20 (VAT incl.). Expenditure of R307.80 (VAT incl.) was incurred

Question:

A vendor bought goods for R1 630.20 (VAT incl.).

• Expenditure of R307.80 (VAT incl.) was incurred in order to bring the goods to the required condition for sale.

• The goods were sold for R2 713.20 (VAT incl.).

You are required to:

1. Calculate the cost price of the goods that is, used as the basis for marking the system up to selling price.

2. Calculate the mark-up percentage.

3. Calculate the net liability for VAT as a result of the sale of these goods.

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Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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Question Posted: Aug 30, 2023 05:15 AM

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A vendor bought goods for R1 630.20 (VAT incl.). Expenditure of R307.80 (VAT incl.) was incurred

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lets break down the calculations step by step Calculate the Cost Price of the Goods Cost Price Init...View the full answer

Fundamental Accounting

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