Financial documents sales

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Financial documents sales is a key part of the Free Bookkeeping Course 1 and Accounting Trainees and bookkeepers need to thoroughly understand them.

You are part way through the FREE BOOKKEEPING COURSE 1 and you should have read the pages listed below before reading this page:
-Free Bookkeeping Course 1
-Introduction to the Accounting System

Welcome to Financial documents for sales.

Now we are going to look at the selling part of the accounting system and in particular we shall look in detail at the financial documents for sales.
The textbook lists the seven most important financial  documents for sales and they are as follows:

Quotation
Purchase Order
Delivery note
Invoice
Returns Note
Credit note
Statement

As an Accounting Trainee or Bookkeeper you will need to be able to recognise and distinguish all these financial documents for sales, and know how each one  is used and recorded within the accounting system.

financial documents for sales
Documents flow between buyer and seller, and it is important that you know where these documents are kept and how they are filed.

Financial documents for sales including VAT and discounts.

Before attempting the quiz below make sure that you have a good understanding of VAT and discounts. This is a very popular topic with Accounting examiners. Remember that VAT is charged on an invoice with settlement discount offered is calculated on the invoice amount after deduction of settlement discount. Many students struggle with this issue and Accounting examiners know this and often include this topic in examinations.

If you haven’t yet  purchased the books here is the Amazon link:

 

QUIZ: FINANCIAL DOCUMENTS SALES





Before attempting this quiz you should have read chapter 2 entitled Financial Documents for Sales of your recommended textbook “Bookkeeping 1″.

Please attempt all questions and then press the submit button at the end, you will then be taken to your results page.

Good luck!



Name


1
What is the name of the financial document sent by a seller to the buyer with the goods, detailing what has been dispatched?



2
What is the name of the document issued by the buyer of goods and services, sent to the seller, indicating the goods or services required?


3
What is the name of the document issued by the seller of goods and services indicating the amount owing and the required payment date


4
What is the name of the financial document issued by the seller reducing the amount owed by the buyer



5
What is the name of the discount given by the seller to the buyer for very large purchases?


6
What is the name of the discount given by the seller to the buyer for payment within a specified short period of time?


7
The gross values of the goods that Micro Teach & Co have purchased is £300.00. Calculate the net amount after VAT of 20%?

Hint


8
This information also relates to the next six questions.
A VAT registered business sells 200 widgets at £3.00 each. VAT is 20%.
A trade discount of 10% is offered. A settlement discount of 2.5% is offered.
Calculate the total price before any discount or VAT?

Hint


9
see q8.
Calculate the trade discount?

Hint


10
see q 8
Calculate the net price (Total Price- Trade Discount)

Hint


11
see q8
Calculate the settlement discount?

Hint


12
see q8
Calculate the reduced goods total
(after both discounts have been taken off, but before VAT)


13
see q8
Calculate the vat?

Hint


14
see q8
Calculate the TOTAL invoice price?

Hint


15
Which government department is responsible for the administration of VAT?










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