Posting VAT
VAT has its own account in the ledger. Sales and purchases are posted net, and the VAT goes to the VAT account.
Task 1A sale with VAT3 questions
A sale with VAT needs three lines.
- The customer owes the gross amount.
- Sales is credited with the net amount only.
- The VAT is credited to the VAT account, because it is owed to HMRC.
Task 2A purchase with VAT5 questions