Hi there, I am currently studying Level 2 and have the Bookkeeping Transactions exam coming up on 27th February. As a general rule I know that VAT is always rounded down when working on invoices. However, using the AAT Course Book from BPP learning media, the answers are rounding up the VAT after discounting the Gross total for Prompt payment discount. (Page 83, question 3 (b) and Page 112, question 2 (b) ).
Could someone please clarify:
* whether the general rule is to round the VAT up or down in this instance,
* how AAT will be marking the papers (ie rounded up or down).
As this could mean losing marks on these questions, it could also be the difference between passing and failing the paper. My tutor has also been searching for the answer.
I would really appreciate any response and look forward to hearing from you. Debbie
Could someone please clarify:
* whether the general rule is to round the VAT up or down in this instance,
* how AAT will be marking the papers (ie rounded up or down).
As this could mean losing marks on these questions, it could also be the difference between passing and failing the paper. My tutor has also been searching for the answer.
I would really appreciate any response and look forward to hearing from you. Debbie