cash discount

[aatabdullahi]

please could you help me with this,<BR>Do i have to subtrack the cash discount before the total or after?

[SUNSHINE4]

Are u using BPP?<BR><BR>Assume your cash settlement discount is 3%<BR><BR>The way i learned from BPP is as follows:<BR>For e.g sales total 400.00<BR>Less trade discount @ 10% 40.00<BR>total 360.00<BR><BR>at this stage you work out your vat<BR>The way we were taught is as follows:<BR><BR>formula<BR><BR>360x(97%)-(this is for your 3%)x17.5%=61.11<BR><BR>so 360.00<BR>minus your vat 61.11<BR>the rule about vat and discounts <BR>is-vat is calculated on the amount<BR>net of the discount,regardless of<BR>whether the discount is taken <BR>Total 298.89<BR>then 298.89x3% = (8.96) cash settlement discount<BR><BR>hope this helps!! Debbie.<BR>

[Soccer]

i, the folowings are the steps u will take y dealing wiv a cash dis invoice. <BR><BR><BR><BR><BR>step 1= after calculating d goods total<BR>step2=find the trade discount e.g 2% of the goods write it down in the box provided in the invoice, den subtract what u get away from the original total. after subtarcting the trade dis away from d original price den multiply by d cash dis e.g 2.5%, den subtract what u got away after calculatind d trade dis,after working out the cash discount, do not write d cash dis down den find d VAT ADD THE GOODS TOTAL AFTER TRADE DIS TO THE VAT den that your final total. hop dis help, if not reply bk den i will show the workings. take care

[shell73]

If none of them helped try this website it gives tips on most things in foundation level it gives you a few examples and ask you to try it<BR><BR>www.accountingtechnician.co.uk/<BR><BR>to view all you need is your student number and D.O.B