VAT Nominal Accounts Quiz

Which code is used for VAT on Sales – Holding Account?

• 2200

• 2201

• 2202

• 2205

How many VAT nominal accounts are there in the chart of accounts?

• Three

• Four

• Five

• Six

What determines which codes the VAT amount appears in?

• The transaction type

• The VAT scheme

• The account balance

• The financial year

What does the code 2205 represent?

• VAT on Sales

• VAT on Purchases

• VAT Liability

• VAT on Sales – Holding Account

What is the role of the VAT scheme in transactions?

• To determine tax rates

• To decide transaction dates

• To determine VAT codes

• To allocate funds

In the example provided, what is the total amount of the purchase invoice including VAT?

• 100

• 120

• 80

• 150

Which ledger account is credited in the example?

• Other expenses

• VAT on Purchases

• Trade Creditors

• Sales Revenue

What is the debit amount for 'Other expenses' in the ledger?

• 120.00

• 20.00

• 100.00

• 50.00

What does the 'Invoice Basis' refer to in the context of VAT?

• The method of calculating income tax

• The method of posting VAT amounts in ledger accounts

• The method of calculating discounts

• The method of recording sales revenue

What happens to the VAT amount when you enter a VAT-applicable sales invoice?

• It is posted against the Trade Debtors account.

• It is posted against the Other Income account.

• It is posted against the VAT on Sales – Holding Account.

• It is posted against the Credit account.