In a VAT-registered traders books and assuming the VAT rate of 17.5% unless advised otherwise. Credit sales
Question:
In a VAT-registered trader’s books and assuming the VAT rate of 17.5% unless advised otherwise.
Credit sales invoiced to customer at £282,000 inclusive of VAT should be accounted for as:
(a) Debit Trade receivables £282,000, credit Sales account £282,000
(b) Debit Trade receivables £240,000, credit Sales account £240,000
(c) Debit Trade receivables £282,000, credit Sales account £240,000, credit VAT account £42,000
(d) Debit Trade receivables £240,000, Debit VAT account £42,000, credit Sales account £282,000
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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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