Want to know more about Understanding Day Books and Control Accounts? In this recording of a Training Link live class, Ben Campbell takes you through this topic with a worked example.
If i do pass my test tomorrow it's thank to you. I wasnt very confident until today when I foudn your vids. Thank you ever soooooooooooo much. It's a life changer video
@@training-link I passed with merit, thanks to you. Some times I’d get confused and I would say to myself “if it increases the account so it’s b/d”, not exactly the same words you used on your vids, but you say that quite a lot, which made it easier to understand the “WHY” behind it. I just came to understand the correlation between the books of prime entry and the ledgers account due to how precise, concise and clear you are on your videos. And that made such a difference in my life. One single video that changed my life and I’m forever grateful for it. ❤
Hi,great vid to go over everything in the aat course work,nice to have both in writing and explained by a teacher. Just one question please,im trying to understand the reason for it being 120 you divide the gross to work ourt the net and not 100 ?Is net always divided by 100 for the gross calculation and gross is always 120 to work out the net?Thanks very much
Hi Jamie, Thanks for your reply. The Gross figure is made up of the Net amount plus VAT. At this stage, you will mainly be dealing with VAT at 20% so our Gross figure is equal to 120% (100% Net + 20% VAT). You can divide the Gross figure by 120 to calculate 1% and then you can multiply this by either 20 to get the VAT amount or 100 to get the Net amount. Alternatively, if you are working from the Net figure (which is equal to 100%) you can divide by 100 to calculate 1% and then you can multiply this by either 20 to get the VAT amount or 120 to get the Gross amount.” Always look out for the rate of VAT you are dealing with as this will effect how you work out 1%. If VAT is at 5% then the Gross figure is equal to 105% (100% Net + 5% VAT) so you would need to divide by 105 to work out 1% and then multiply by 5 to get the VAT amount. I hope that helps. :)
