Tag: balance sheet

What is Cost of Sales?

Cost of Sales Opening stock  Plus Purchases  Less Closing stock = Cost of Sales Cost of Sales is direct cost of product sold, shown in the Income Statement Opening/Closing stock is shown in Balance Sheet

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What is Input VAT?

Input VAT If your business is registered for VAT, you can claim back VAT charged to you on products and services Input VAT = Expense * 15/115 Input VAT is claimed from SARS Input VAT will NOT be shown under Expenses in the Income Statement

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What is Output VAT?

Output VAT If your business is registered for VAT, you will charge VAT on the sale of products and services Output VAT = Sales * 15% . Output VAT is payable to SARS Output VAT will NOT be shown under Sales in the Income Statement

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What is Income received in advance?

Income received in advance Income is received before the business has delivered the product or service for the benefit of customer Income received in advance is shown under Current Liabilities in the Balance Sheet Income in the Income Statement is reduced by income received in advance  (i.e not yet earned)

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