How to reconcile the VAT control account
Before a VAT return is sent, its figure should agree with the VAT control account. Find out why it might not, and put it right.
Task 1The figure the control account should show4 questions
Before a VAT return is sent, its figures are checked against the VAT control account. Both are built from the same books, so they should agree.
| Source | VAT |
|---|---|
| Sales day book | 5,900.00 |
| Cash book, cash sales | 430.00 |
| Sales returns day book | 90.00 |
| Purchases day book | 3,400.00 |
| Cash book, cash purchases | 170.00 |
| Purchases returns day book | 150.00 |
- VAT due on sales: sales day book plus cash sales, less sales returns
- VAT reclaimed on purchases: purchases day book plus cash purchases, less purchases returns
- VAT payable: VAT due on sales less VAT reclaimed on purchases
Task 2When the two figures disagree3 questions
Task 3Putting it right2 questions