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

Payment by cheque for expenses, liable to VAT, of £14,100 should be accounted for as:

(a) Debit Expense account £12,000, debit VAT account £2,100 and credit Bank account £14,100

(b) Debit Expense account £14,100, credit Bank account £14,100

(c) Debit Expense account £14,100, credit Bank account £12,000 and credit VAT account £2,100

(d) Debit Expense account £12,000, credit Bank account £12,000