In a VAT-registered traders books and assuming the VAT rate of 17.5% unless advised otherwise. A purchase
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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
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Related Book For
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict
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