The amount of VAT included in goods costing £200, inclusive of VAT at the rate of 21%, is …
Select ONE answer:
- £31.50
- £34.71
- £42.00
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
Let Cost = 100%
Cost + 21% = 121% = £200
VAT = 21% = £200/ 121 ” 21 = £34.71
Proof: £200 – £34.71 = £165.29 and £165.29 + 21% = £200
- Incorrect
- Correct
- Incorrect
- incorrect
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