Working out vat on a total?

Question

i am doing some simple accounts at work, as the bookeeper has let the co down. we are a bit stuck

we calculate cash payments from our non ac holders and work out the total payment then work out the vat on this and show the deducted payment etc.

i know how to get to this sum, the total fee divided by 47 time 7.

all the figures are right singularly, but each month there are about 200 entries and the totals dont show the correct amount. the columns add up correctly but the vat on the whole amount is about 30p short overall. obv thats because of the odd 1/2 a pence here and there overall. how do we show this or allow for this ????????????

Answer 1

Perhaps you could look at the decimal places and round some of the figures up instead of rounding them all down.  That way you might not have a difference.

Answer 2

You don't. Customs will understand this. Simply pay over the actual amount you have deducted/analysed, assuming you aren't making errors. If you are consistently rounding down, then it will produce small differences on the total. However, unless you give out cash receipts for each transaction, or they are seperately recorded within a cash register with the VAT analysed, do you have to do a VAT calculation for each cash transaction? Could you not simply extract the VAT from the monthly total?

Answer 3

When you say "all the figures are right singularly" does that mean you have a net figure and a VAT figure which you then add together and check to see that they agree with the original gross figure?  If they do not agree then do you adjust either the net or the VAT by a penny?  If you do then you should not have any 30p shortfall.