In a VAT-registered trader’s books and assuming the VAT rate of 17.5% unless advised otherwise.

A purchase invoice, inclusive of VAT, for £9,400, should be accounted for as:

(a) Debit Purchases account £9,400, credit Trade payable £9,400

(b) Debit Purchases account £8,000, debit VAT account £1,400, credit Trade payable £9,400

(c) Debit Purchases account £8,000, credit Trade payable £8,000

(d) Debit Purchases account £9,400, credit Trade payable £8,000, credit VAT account £1,400