Chapter 11 Activities

ACTIVITY 1

Here is a supplier's invoice. You are required to determine if the calculations have been correctly carried out.

MARCHANT PAPER LTD
74 High Road Leeds LS14 ONY
Telephone: 0191 328 4813
Tax Reg. No. 947 4565 411
SALES INVOICE
Invoice No: 47914
Order No: E9471
Customer
J Forrester Wholesale Supplies Ltd
Unit 79b
Oakhampton Industrial Estate
Bristol BS27 4JW
Date/Tax Point: 2 March 20X3
Item No.DescriptionQuantityItem valueDiscountTotal
EE27Envelopes A520,000£8.50 per 1,0007%258.10
EE29Envelopes A420,000£12.75 per 1,0005%242.25
RE20Recycled A4 envelopes30,000£11.50 per 1,0008%217.40
Total before taxes:717.75
Sales tax at 20%:143.55
Total:861.30
Terms: 5% cash discount for payment within 30 days
Carriage paid E&OE
For a suggested answer, see the 'Answers' section at the end of the book.

ACTIVITY 2

Given below are three purchase invoices and related purchase orders and goods received notes. Should these purchase invoices be passed for payment?

LIGHTING INVENTORY LTD
14 High Road Crowbarough East Sussex
Telephone: 01673 892014
Tax Reg. No. 226 1429 292
SALES INVOICE
Invoice No: 497731
Date/Tax Point: 20 May 20X6
Customer: Fielden Lighting Ltd
Crowhurst Road Wareham Kent
Total (£) Supply of:
27 Brandish light fittings510.30
14 Farell light fittings216.44
19 Barnstable wall mounts240.92
Sub total:967.66
Sales tax at 20%:193.53
Invoice total:1,161.19
Terms: Net cash within 30 days E&OE
SUMMERHILL SUPPLIES
27 High Road Knebworth Herts
Telephone: 01985 621058
Tax Reg. No. 221 7438 319
SALES INVOICE
Invoice No: FL 493
Date/Tax Point: 20 May 20X6
Customer: Fielden Lighting Ltd
Crowhurst Road Wareham Kent
4 PC 21 Light fittings194.60
11 TL 15 Wall fittings441.57
12 MT 06 Lamp stands387.76
Less trade discount:56.27
Sub total:967.66
Sales tax at 20%:193.53
Invoice total:1,161.19
Terms: Net cash within 30 days E&OE
Stonewall Stationery
Merrydown Court Wadhurst
Telephone: 01673 492492
Tax Reg. No. 496 3211 560
SALES INVOICE
Invoice No: 13382
Date/Tax Point: 18 May 20X6
Order No: E5561
Customer: Fielden Lighting Ltd.
Crowhurst Road Wareham Kent
Item No.DescriptionQuantityItem valueDiscountTotal
1069242 Hole Files - A425£1.5010%33.75
17240Lever Arch Files40£2.5015%85.00
Total before taxes:118.75
Sales tax at 20%:23.75
Total:142.50
Terms: 5% cash discount for payment within 30 days
Otherwise net 60 days E&OE

ACTIVITY 3

1. A business received a purchase invoice for £400 plus sales tax at 20%. The supplier offers all customers a settlement discount of 2% if payment is received within 7 days of the invoice date.

What is the total of the purchase invoice, including sales tax at 20%?

A:£480.00
B:£489.60
C:£470.40
D:£392.00

2. An invoice was received from a non-sales tax registered supplier for £300. When checking against the original order the buyer noted that the agreed trade discount of 20% had been omitted as had a settlement discount of 5%.

What is the correct total of the purchase invoice?

A:£228.00
B:£240.00
C:£252.00
D:£285.00