The totals of input and output taxes of Mordred Products for their first three months of trading were £11 600 and £12400 respectively. As a result the VAT account will show:

(a) a debit balance of £800 representing tax due to the Customs and Excise;

(b) a credit balance of £800 representing tax recoverable ;

(c) a debit balance of £800 representing tax recoverable;

(d) a credit balance of £800 representing tax due to the Customs and Excise.