INAC5111 2026 TEST 2 REVISION LU 3

Added: 2026-05-07

[00:00:16]Okay, good morning everyone and welcome as Salama. If you can please just confirm that you can hear me and that you can all see our first screen then I'll jump in with our session.

[00:00:29]>> Hi, good morning everyone.

[00:00:38]>> Okay, excellent. Thank you for that.

[00:00:40]>> Okay.

[00:00:43]>> Welcome then everyone to the introduction to accounting 1A.

[00:00:50]Uh this is then our revision for your so let me just get my slides right. Right.

[00:00:55]So this is then your revision for semester test number two. And uh we will be covering we'll start with learning unit three in this first session.

[00:01:06]Uh today then here on our side it's myself Ena Frost. I will be doing the presenting and then my co-presenter is Salama Parker and she will be assisting you with any um questions that you might have. And remember you're more than welcome to type those questions up in the chats uh so that we can assist you and we can solve all the problems before your semester test.

[00:01:32]Uh yes, we are recording our session this morning and remember all of these recordings are uploaded to our YouTube channel. Um I'm hope all of you are aware of our YouTube channel. It's the School of Management Studies YouTube channel. So it's right there on YouTube and that's also where you can find the recordings uh for the semester test one revision. Uh so please check out this YouTube channel and you can find all of our recordings there.

[00:02:04]Okay. So today then our aim is to get you ready for semester test number two.

[00:02:09]And semester test number two will be for 50 marks. It will be a 1h hour assessment clos book. So similar to test number one and then it's going to focus on your knowledge on learning units three and four. Uh please uh save the date so long. Uh the 4th of June will be our big exam revision day to prepare you for the exam and that will happen on the 4th of June.

[00:02:41]Okay. So our first session then that we are going to look at learning unit number three and learning unit number three deals with value added tax and source documents. And this learning unit is really really key to your understanding of everything that we are doing for the rest of this semester because you will see when we do the learning unit 4 revision a little bit later this morning. I'm going to keep referring back to learning unit 3 and what we showed you in learning unit 3.

[00:03:13]Uh so this learning unit is really important and really important that you must understand this learning unit because it does fit into learning units four and five and six.

[00:03:26]When we start with our revision I always like to just take us back to the module outline and to the learning unit outcomes for a particular learning unit.

[00:03:37]It's really important that you need to go through all of these outcomes because these are the things we want you to know and understand by the end of a particular learning unit. And so these are the things that we can then test you on in an assessment because these are the points that we feel are really key in a particular learning unit. So the first thing that they tell us here in the learning unit outcomes that you must know is your theory. So in learning unit 3, there's quite a bit of theory that you need to make sure that you know and that you are able to answer a theory question. If you want to practice theory questions in your textbook, then please go to questions 3.1, 3.2, 2 and 3.3 of your textbook. And particularly this uh question 3.3 is a really good revision question to work through. That's the one that looks at the different the four different supply categories and they give you different supplies and you need to allocate them into each of the four categories.

[00:04:50]Then the next thing we want you to know out of this learning unit is we need you to know your source. documents. And again, source documents is covered here in learning units 3, but you will remember in learning unit four when we deal with the cash journals, we also deal a lot with source documents. And in learning unit five, when we do the credit journals, you will once again see we deal a lot with source documents.

[00:05:16]That's why we say this learning unit 3 now fits into all of your future learning units. So again, when it comes to source documents, make sure that you know all the theory around source documents. In particular, if we look at our learning unit outcomes, you'll see this one says, explain what is a valid tax invoice and what it looks like. So there you need to go to your pages 83 and 84 in your 2026 version of the textbook. And this tax invoice is really important because of course uh we can't claim input VAT if we don't have a valid tax invoice.

[00:06:00]Then the next one the next learning outcome is also dealing with source documents and it says we need to be able to differentiate between your various source documents that can be used by the transaction so rather by the business to record transactions. And there in your textbook, you need to make sure you've revised pages 85 to 90. And those are really nice pages because they actually give you a picture of what the source document actually looks like. Uh what is the kind of information that we include on this type of source document and they also say whether this type of document is or is not a valid document for claiming input VAT.

[00:06:45]In your textbook, there are also a few questions that you can revise on source documents. And that's questions 3.4, 35, 39. And then remember at the back of your textbook in learning unit number seven, there's also additional revision questions. And there's revision questions three and five that also deals with source documents.

[00:07:11]Then the next thing and these are now the big ones in learning unit number three is we need to know how to do the VAT calculations as well as the markup and gross margin calculations. And these two are really important and again you'll see they come up again in learning units four and five and six. So these calculations are very important and if you want to practice a calculation questions in your textbook you can look at questions 36 37 38 and 312 and 38 is a particularly nice question because in 38 we combine your understanding of VAT calculations and markups into one question. Uh so definitely uh make sure that you have practiced these questions as you prepare yourself for the upcoming test.

[00:08:09]Your key uh to making sure that you are well prepared for the semester test is to practice as many many questions as you possibly can. And just a reminder that at the back of your introduction to accounting 1A textbook are all the solutions to the textbook questions. Uh so even if your lecturer didn't cover a particular question with you in class, you do have access to all the solutions at the back of your textbook as well as that learning unit 7 with the extra revision questions. You also have solutions to those questions.

[00:08:49]Okay, now we're going to jump in and we're going to look at how to do our VAT calculations.

[00:08:56]So, we're going to start by saying if I give you the amount excluding VAT and you then add to it the 15% VAT, that will then give you the amount including that. So, let's look at this with some amounts. So if the amount excluding VAT is 100 then we add to it the 15 rand VAT and that will then give us the price including VAT of 115 rats. So the first thing that you must see from this slide is that the amount excluding VAT will always be less than the amount including VAT. So if we ask you to do any VAT calculations then always just double check yourself and make sure that the amount excluding VAT is the smaller of the two amounts and that the amount including that is the bigger of the two because here you can see the price excluding that is 100 and the price including that 115.

[00:10:09]Okay. So now get ready your calculators, your pen and your paper so that you can work alongside with us in doing some calculations and making sure we can do our VAT calculations.

[00:10:23]So the first one that I've got for us to try is uh if I say to you the amount excluding VAT is 600 rand how will I calculate the VAT amount and how will I calculate the price including VAT and remember again the amount excluding VAT is equal to 100 the VAT is 15% and the amount including VAT is 115. 15. So on your calculators, see if you can quickly work out these two missing numbers and then you can see if we get the same answers.

[00:11:10]Okay. So the VAT amount then I'm going to take the price excluding that I'm going to multiply it with 15% and that will then give me the VAT amount.

[00:11:23]The price including VAT will be the price excluding VAT plus the 15% VAT and that gives me the price including VAT.

[00:11:35]There is also a quicker way that I can go from the price excluding that to the price including that and I can do uh this calculation where I take the price excluding that the 600 rand and I multiply it by 1.15 and as you see that once again gives me the 690 which is the price including that. So I hope you were all able to get to your VAT and VAT including amounts.

[00:12:11]Now let's look at the next scenario. In the next scenario, I can give you the price including VAT and then I can ask you to calculate the VAT and the price excluding that. So again, I will just pause for a moment to give you a chance to see if you can do those two calculations.

[00:12:39]Okay. So, how do we go about to do the calculation? I always like to start by working out the price excluding that.

[00:12:48]And to work out the price excluding that, I'm now going to divide by 1.15.

[00:12:55]Remember in our previous slide we went from the price excluding VAT to the price including VAT by multiplying by 1.15.

[00:13:08]If we now go in the opposite direction.

[00:13:11]So now I go from the price including that to the price excluding that. Now I divide by 1.15 and the that amount is always the difference between the price including that and the price excluding VAT. So if I subtract those two amounts that will present me with the VAT.

[00:13:36]We can also test our VAT calculation by using the price excluding VAT. So if I use that 900 rand and I multiply it with 15% it will also give me the VAT amount but I have to caution you here what we cannot do is we cannot take the price including that and multiply that with 15%.

[00:14:08]Because you can see it gives me a very different answer. Now it gives me uh the VAT as 155 rand where per our calculation the VAT amount was 135 rand.

[00:14:23]So you can see uh it gives me a much higher answer for the VAT and the reason for that is because remember this 1,035 rand is already the amount including VAT. So if I now just take 15% of this number, I'm in effect calculating VAT on VAT. So uh always if you want to use the formula times 15%, you must make sure that you are working with the price excluding that.

[00:15:03]Okay, did you all see that?

[00:15:11]Next up a diff another scenario is that we can give you the price rather we can give you just the VAT amount. So we give you the 15% VAT and we want to know what is the price excluding and the price including VAT. So if I give you purely the VAT amount, what we're going to do is we're going to take that VAT amount and we're going to divide it by 15%. Or you can also write it as 100 over 15 and that will give me the price excluding that. Then to get to the price including that, I can now just add these two amounts together and that will give me the price including that.

[00:16:00]And again to double check to make sure that my 1,726 is in fact correct, I can take the price excluding that and I can multiply it by 1.15.

[00:16:16]And that then should give me the price including that. And that could be a way that I can quickly check myself to make sure I have done the right calculation.

[00:16:32]In a semester test two from last semester or rather last year the 2025 uh they asked the student to do similar calculations to the ones that we've just practiced. So you can see they gave them the little table the VAT exclusive prices the VAT amounts and the VAT inclusive prices. But when we start a question, we have to make sure that we first just read all of this uh information in the required. So please don't just jump in and start making calculations. Please just first read and see what is required. So let's have a look. So the first thing of course they tell us the VAT rate is 15%. Which is the current South African VAT rate. And then the next thing is they tell us we must round off all of our answers to two decimal places. Okay. So that is an important fact that we have to note. And then the second important thing to see is they ask us to show all the workings.

[00:17:38]Uh I won't give time now for us to do all of these calculations but later when you rewatch the recording you can come and try these calculations and then come and check them against my answers uh to make sure that you were able to calculate all of these amounts.

[00:17:58]Now uh remember when we now get ready for our test this week there is two important sides to it. on the one side we have to prepare and make sure that we know uh everything we need for the test.

[00:18:14]So that's what we do in advance of the test. But when we actually there in the test venue, there are also certain things that you can then do on the day that will improve your chances for doing well in the actual semester test. And these are the ones that I refer to as the exam tips. So what are the things that you can do while you are actually writing the paper that will also give you a better chance of doing well in the paper? The first thing is to show your workings. And remember in this question they actually specifically told us to show workings.

[00:18:54]The second one is to make sure you are managing your time. And I'll speak about this a little bit more in some of my later slides. But this question is for six marks. Uh which means we've only got sort of just over seven minutes to finish the question. And if you spend too much time on a particular question, it's going to impact your ability to complete your later questions. And then the third key tip is to read your required very carefully. And that's why we first started by reading this section to make sure we really understand what it is they want from us in this particular question.

[00:19:39]But I'll talk more around these exam tips as we progress throughout the morning.

[00:19:46]The next thing we want to talk about is just how does the South African VAT system works. And uh for this um speed or this slide now we're just going to assume the amounts that I'm going to provide here all exclude VAT. Okay. So just be aware of that. So remember in our VAT system we have input VAT which is your current asset and you have output VAT which is your current liability.

[00:20:14]Input VAT is what we can claim back from the receiver of revenue and that will be the VAT we as the business paid when we bought um items for the business and output VAT is the amount we have to pay to the receiver of revenue and that's the VAT we as the business charged on our sales. So let's have a look and see how this actually works uh out. So we start off with a VAT vendor A who buys inventory worth 20,000 rand excluding VAT. So VAT vendor A then will immediately be able to claim input VAT on the purchases of 20,000 rand.

[00:21:02]Then VAT vendor A sells the inventory to VAT vendor B. they obviously add a markup to the inventory and they will add VAT to uh the inventory when they sell it to VAT vendor B. So now it is going to look like this. Uh vendor A will now have output VAT on the sales and vendor B will now be allowed to claim input VAT on the inventory that they purchased.

[00:21:39]When it comes time now to make the payment to the receiver of revenue, we subtract the out the input VAT from the output VAT and then the difference between your input and output VAT will then be either paid over to SS. So if the output VAT is the bigger of the two as we have in this calculation then it means that vendor A has to pay 2,250 rand to the receiver of revenue.

[00:22:17]If the input VAT is the bigger of the two amounts then it will mean that we can claim back from the receiver of revenue.

[00:22:28]Let's do one more just to make sure that you understand how the VAT system works.

[00:22:35]So now vendor B also sells the inventory. So they are going to take this inventory that they've bought and they in turn are going to sell it to that vendor C. Right now it's going to look like this.

[00:22:53]So vendor B is now the one with the output VAT because vendor B now made the sale and vendor C is now the one with the input VAT because they now the one who purchased this inventory from vendor B. How much would vendor B have to pay to the receiver of revenue? Let's look at the calculation. So again we're going to subtract the output. We're going to take the output VAT. We're going to subtract the input VAT. Again, for this example, the output VAT was the bigger of the two amounts. And so, vendor B will pay over 3,000 rand to the receiver of revenue. So, this in a nutshell is how the VAT system works. And if you want to check it in your textbook, you'll actually see, let me just quickly get you the page number. If you look on page 75 of the 2026 version of the textbook, point 3.2 and it says, "How does the VAT system work?" So you can also go through that section in your preparation for the semester test. Salama um will you like to just speak here to your two tips uh for our students as are you able to hear Okay.

[00:24:46]Okay. Zama might not be able to hear me at the moment. So I will just quickly go through her tips uh with you.

[00:24:55]Okay. So Salama's top tip for us this morning is just to remind us that output VAT is calculated on sales and other income. Input VAT is calculated on purchases and other expenses. If your output VAT is greater than your input VAT, then it will be VAT payable to the receiver of revenue. So that will be these two scenarios on my slide. And if input VAT is greater than output VAT, then the receiver of revenue will have to pay to the business and it will be VAT refundable.

[00:25:33]Let's do a quick recap now before we move away from our VAT calculations.

[00:25:42]So the amount excluding VAT times 1.15 will give you the amount including VAT.

[00:25:51]The amount including VAT divide by 1.15 will give you the amount excluding VAT.

[00:25:59]The amount excluding VAT is always less than the amount including VAT.

[00:26:08]Okay? So, make sure you've got that. So, the price excluding that times 1.15 gives you the amount including that. The amount including that divide by 1.15 give you the amount excluding that. The amount excluding that is always smaller than the amount including that.

[00:26:33]Then your amount excluding that times 15% will equal your VAT.

[00:26:40]your amount including that minus your amount excluding that also equals that.

[00:26:48]Okay, so remember so your price excluding that times 15% is how you can calculate that or you can take your price including minus your price excluding and that will also give you VAT. Before we move away completely from VAT, Salama has got one more tip that she wants to share with us. And I'm not sure Salama if you're back now. Would you like to speak to this slide?

[00:27:21]Okay. So, Salama just wants us me to remind you guys that uh you have to make sure you know all of your VAT formulas and remember there's no formula sheet with our semester test. So, you need to know all of these different VAT formulas and then please remember the all important VAT theory um that comes with this section.

[00:27:45]Now, we're going to move over to the second set of calculations. And in the second set of calculations that comes out of this semester test is how to do the markup calculations and how to do the gross margin. So a markup what do we mean by markup? Markup is when you express the profit uh as a percentage of the cost price. Okay. So to calculate markup we take profit and we divide it by the cost price. when we want to calculate our gross margin, we take profit and we divide it by the selling price. So, can you see the difference?

[00:28:27]So, for a markup, it's profit over cost price where for the gross margin, it's profit over selling price. And the very big thing that you must note here is that a markup is not equal to a gross margin. And we're going to do some calculations now where we're going to prove to you that a markup and a gross margin is not the same thing.

[00:28:53]And so you have to be very careful in the question. Is the question giving you the markup with other words on the cost price or are we giving you the gross margin which is calculated on the selling price.

[00:29:07]And just remember that when we calculate markups and gross margin percentages, we always use the prices excluding VAT. So that's again where you're going to be using your VAT formulas to get to the price. So either the cost price or the selling price excluding VAT before you try these calculations.

[00:29:31]If you want to follow on, this is a section 3.6.2 of your textbook. It's page 92 of your 2026 textbook and it's that little paragraph at the bottom of the textbook. So this um this slide here is really just a summary of the bottom of page 92 of your textbook.

[00:29:55]Okay. So have your calculators ready.

[00:29:57]Now we are now going to jump in with our calculations.

[00:30:02]So let's take this scenario now. So we have a product with a cost price of 500 rand and we're going to sell it for 625 rand. So with other words we make a profit of 125 rand because the selling price minus the cost price gives us the profit. So what will be the markup percentage? So if we take the profit 125 and we divide it by the cost price that tells us that the markup percentage is 25%.

[00:30:45]Now let's use the same set of information but this time we're going to calculate the gross margin.

[00:30:55]So now we still start our calculation with the profit but this time remember we have to divide by the selling price.

[00:31:04]So we need to divide by the 625 and now the gross margin is 20%.

[00:31:12]>> [snorts] >> So can you see now based on the same set of information uh the gross margin percentage and the markup percentage is not the same. Okay. So please don't ever make the mistake of thinking that these two are just synonyms and will give you the same answer. uh we can now see clearly from my slide that's on the screen now that we get two very different percentages when we work out the markup versus when we work out the gross margin.

[00:31:48]Now in questions particularly in learning unit four type questions we are now going to give you for example the selling price and we're going to ask you to do the cost price calculation and we are going to provide you with either the markup percentage or the gross margin.

[00:32:09]So let's see how we going to go about to do those kinds of calculations. The first thing we have to understand if we say a markup of 25%.

[00:32:20]It's important for us to understand the relationship of the different numbers.

[00:32:27]So if the markup is 25%, there you can see it's 25%. And if it is a markup then it means the cost price will be 100. And that will be our base number because we are dealing with a markup percentage which is a percentage on the cost price.

[00:32:48]The selling price then will be 125 which is the cost price plus the profit. And this little table over here shows you the relationship between the cost price, the profit and the selling price. And if we now use the relationship between these three numbers, we can now solve any question. So let me show you what I mean by that. So if the question tells us the selling price of the product is 12,000 rand and we need to figure out the cost price. How will we do that now?

[00:33:28]So, we know what is the selling price, but we need to figure out the cost price. So, we're going to use the relationship between these three numbers to figure out the cost price. And we're going to do it like this. So, we're going to take the selling price, 12,000 rand. We're going to multiply it with what we have uh uh sorry with what we want over what we have. What do we have? We have the selling price. What do we want? We want the cost price. And now we can calculate it and find the cost price to be 9,600 rand. And if you want to doublech check that calculation, we can once again work out the profit.

[00:34:20]We can divide it by the cost price. And that brings us right back to our 25% markup.

[00:34:30]Now let's see. Now I want you to try on your own if you can now do a calculation.

[00:34:38]So again, uh, we've got a similar scenario where the markup percentage is 25%.

[00:34:44]This time round, I'm giving you a selling price of 8,550 rand. And I want you to calculate the cost price by making use of the relationship between the three numbers.

[00:34:59]Once you've got your answer, post it for us in the chats so I can make sure and Salama can make sure you can do these calculations.

[00:35:16]Okay. Okay. So, once you're ready, once you've done your calculation, quickly post it for you for us in the chat so that the llama and I can double check to make sure you've got uh you can do these calculations.

[00:35:42]Okay. Anyone? I'm not seeing anything yet in the chats. Uh, please put up your answers. You're going to use your same formula. Ah, thank you. I see there's some good answers coming up now. Uh, well done to the first two students.

[00:35:57]Well done students. I like those. I think Salom and I can definitely give out some stars. These are good answers.

[00:36:04]Well done.

[00:36:15]Okay. Well done students. I see quite a few of you were able to get the correct answer. So how did we calculate that answer? We took the selling price and we multiplied it with what we wanted. We want the cost price which is the 100 and we divide by what we have. What did we have? We had the selling price 125.

[00:36:41]And that is now how we calculated the cost price. So good job. Well done to everyone who was able to get the 6,840.

[00:36:56]Okay. So earlier we said that uh on that same set of information that we had the markup percentage is 25% and the cost price sorry and the gross margin is 20%.

[00:37:11]And now in our earlier calculations we spoke about the relationship between the cost price the profit and the selling price when we dealing with a markup.

[00:37:24]Now, we're going to move over to the gross margin. And we're also going to talk now about the relationship between the cost price, the profit, and the selling price. But look carefully. Are you able to spot the difference? Can you see that the relationship now looks different to what I showed you earlier for our markup?

[00:37:49]You can see now now the selling price is your base number because remember a gross margin is profit over selling price.

[00:38:00]So this time around the selling price is now the 100. The profit is the 20% that we calculated. So now the cost price is then the selling price minus the profit which then in my example is the 80%.

[00:38:19]So again let's now use this uh new uh relationship to see if we can use it in a calculation.

[00:38:31]Okay. So let's have a look now at an example first and then I'll give you a chance to do the calculation. So I'm telling you the selling price is 86,000 rand and I want to know what is the cost price. So again I can use my formula. So the selling price is 86,000 rand. What do I want? I want the cost price. What do I have? I have the selling price. So let's look at the calculation then on this side. So what do I want? I want the cost price. What do I have? I have the selling price and that then gives me a cost price of 68,800.

[00:39:17]And also take note that the cost price is smaller than the selling price. So also always just double check your answer because the cost price must always be smaller than the selling price. We can also doublech check our calculations uh by again working out the profit, dividing it by the selling price and making sure that we still getting that original 20%.

[00:39:48]Okay, now it's your turn to do the calculation. So again, you're going to use the relationship between the cost price, the profit, and the selling price to calculate the cost price. If the selling price is 1,750 rats, again, as soon as you've made your calculation, please post it for us in the chats to make sure that you are able to do the calculations.

[00:40:17]And please, can we see uh some calculations now from a couple of other students? Ah, I see there's some of you that's really quick with your calculations. Well done.

[00:40:28]Can I see a couple more of the calculations before I give you my answer?

[00:40:43]Okay, well done. That's looking very good. It looks like you've definitely got the hang of it. I saw many of you were able to get to the 1,400.

[00:40:53]So what we did is we took the selling price, we multiplied it with what we wanted. What did we want? We wanted the cost price and we divided by what we have and that is the selling price. So well done students. It's always important for you in a question that you write down this relationship between the cost price, the profit, and the selling price. It just makes it so much easier for you then to do your calculations.

[00:41:26]Okay. So let's look at the formula now.

[00:41:29]So what is the formula that we use for these calculations? Then we say uh what you want in rans uh must be equal to what you have in rans times what you want the percentage over what you have the percentage. So remember if we just go back to my previous slide. So what did we want in rans? We wanted to know what was the cost price in rans. What did we uh we started by using the selling price in rand and we multiplied it with the percentage of what we wanted over the percentage of what we had.

[00:42:16]So this is a really really handy formula to use when you do these markup and gross margin calculations. And in fact, you can also use this formula for all your VAT calculations. So this formula of what you want over what you have works just as well for your VAT calculations as it does for any markup or gross margin calculations.

[00:42:46]So just as a llama's recap then so remember cost price plus profit is selling price or another way we can say it selling price minus profit is cost price or selling price minus cost price is profit. So it's important to remember the relationship between the cost price the profit and the selling price. And remember, as a general rule, the cost price must always be smaller than the selling price.

[00:43:21]Then when you work with a markup, remember your cost price is your base.

[00:43:26]So that will be your 100%.

[00:43:29]The profit is the percentage we'll typically give you in the question. And the selling price will then be the cost price plus the profit.

[00:43:41]If we're working with a gross margin, then the selling price is the base. So that is the 100%.

[00:43:49]minus the profit and that is how we'll get to the cost price.

[00:43:56]I think I'm just going to pause a minute on this slide just to give you all a chance to read through it and make sure that you understand everything on the slide.

[00:44:20]Okay, Salama. Everyone still good there on the other side in the chats? Is everyone happy there with the calculations?

[00:44:29]>> Ina, yes, it seems. I just have a question from Cookit. So I was going to tell her she just wanted to know if it's necessary to include the rans when calculating answer. She must put the rand sign in.

[00:44:44]It's not really um necessary. Ketu thanks for that salama. Um then I also just wanted to show you that again in that 2025 test two there was actually a table where we would give you the cost prices uh the profit and the selling price. So kind of a similar scenario to the one earlier where we did the prices including that VA that VAT and excluding that. But again, just a few key things uh to draw your attention to because remember now we're always going to start by reading our um information carefully.

[00:45:28]So again, they tell us we can round to two decimal places. And once again, they remind us to show all of our workings.

[00:45:37]And then the next thing that we had to see is here under this column with the heading markup. They jumped around a bit here. Some of it was a markup on cost price and for others it was a markup on selling price and a markup on selling price is actually the same as a gross margin. So with a table like this you have to make sure that you are using the right formula each time because remember now earlier we showed you that a gross margin and a markup is not the same thing. So it gives you different answers. So you need to be very careful when you read your required which one of these two are we talking gross margins or are we talking markups otherwise it will impact all of your calculations.

[00:46:30]And then remember we said this formula is just so so handy where we talk about what you want over what you have and that can be used both for gross margin and for markup calculations.

[00:46:45]So later when you've got time you can go and uh perform all of these calculations and then you can come back uh to this slide to come and double check if you actually did your calculations correct.

[00:47:01]If you need more help with either VAT calculations or markup calculations, please don't forget about our catchup videos that uh we made available to you at the beginning of the semester and those you can find on your my Emiris.

[00:47:18]They have all been loaded to my Emiris and particularly video four of four. Uh video four or four also covers our VAT calculations, our markups and our gross margins. Uh so uh please make sure you uh avail yourself of these resources. So if you feel like oh hang on I actually could do with just another recap then please uh make use of that video.

[00:47:48]Then don't forget for learning unit number three your uh theory is really really important. Um in fact often times people think because we're in an accounting or a numerical module theory is not really important. But remember if you don't know your theory then you also can't do the application questions. Uh so please make sure uh learning unit 3 does have a lot of theory in it that you spend enough time studying your theory.

[00:48:19]As we said earlier, your key to success is to do as many many questions as you can. So please make sure you are revising all the textbook questions uh when you prepare for the test.

[00:48:33]I think at this point we're going to have a short break now. Uh let's see what we where are we for time. Let's have a um sort of a 10m minute break just so all of us can stretch legs. Um Salama I'm not sure just before we go into our 10-minut break is there anything that you still want to add for our students.

[00:48:58]>> Hi Ena. Um just maybe a reminder how important this learning unit three is especially as we will be progressing into learning unit four. So if they do really know the ex that calculations, the exclusive, inclusive and and that amount and being able to use the what you want divided by what you have and also very importantly just to revise and study those um formulas that you just shared on the previous slide. It's so so important and not forgetting also the VAT categories.

[00:49:35]Please also work through question 3.

[00:49:39]I'm just quickly getting >> I think it's 3.3.

[00:49:42]>> 3.3. Yes, that's such a key question.

[00:49:46]>> Yes. And also not forgetting all the theory for example on page 82 and also the source documents that was covered there is also very important. We might not have maybe gone through it now, but they should also be able to know the difference between, you know, pool tax invoice and a bridge tax invoice and just all those um other theory in the the textbook. Very important as you mentioned um the theory and just to revise and especially with the how to calculate whether that will be payable or refundable.

[00:50:23]Please just also to recap the activity in the textbook example 3.3 ina. Thank you.

[00:50:31]>> Ah thanks for that lama. Yes remember students when I started the session I showed you the outcomes the learning unit outcomes for for this learning unit and remember we spoke there about knowing your theory and knowing your source documents. So, even though today's lesson was now focused more on the math side of VAT and markups and gross margins, that doesn't mean that the theory side is not as important, but it's easier for you to study the theory at home um than and so it's more important for us to show you just or to recap on those calculations. So, we're going into our 10-minut break now. So, on my side, I see it is 11:25.

[00:51:14]So, if we can all be back in the venue at 11:35, um then we will resume with learning unit number four. Please make sure you've got your textbook, calculator, and so on with you when you rejoin me in the class. Thanks everyone.