Page 16 Chapter 2

CHAPTER 2
Selling Goods and Services

Chapter Summary

 Businesses produce a number of documents to keep track of their sales.
These documents include:

1. Quotes and estimates

2. Purchase orders

3. Delivery notes

4. Invoices

5. Returns notes

6. Credit Notes

7. Customer statements

 VAT is charged on goods and services supplied at the rate of 20%.

 If trade or bulk discounts are offered the VAT should be calculated on the
reduced amount.

 There are special procedures when a prompt payment discount is offered.

 A credit note should still reflect any trade or bulk discount so that the
credit matches the sale.

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