Discos to reflect 7 5 vat on transactions feb 1

A question about accounting!

To reflect the 7.5% VAT on transactions from February 1, you'll need to calculate the VAT amount and add it to the total transaction value. Here's the step-by-step process:

  1. Identify the transaction value: Let's say the transaction value is £100.
  2. Calculate the VAT amount: Multiply the transaction value by the VAT rate (7.5% in this case).

VAT amount = £100 x 7.5% = £7.50 3. Add the VAT amount to the transaction value: £100 (transaction value) + £7.50 (VAT amount) = £107.50

So, the total amount to be recorded in your accounts would be £107.50.

Here's an example of how this would look in a discos (double-entry accounting system):

Debit

Credit

This way, you've accurately recorded the transaction value and the VAT amount separately, which is essential for accounting and tax purposes.