Using the information from Exercise 34.6 write up the VAT account and highlight the amount that should be paid to, or received from, HM Revenue and Customs.

Data from Exercise 34.6

Write journals to post the following transactions. (VAT is chargeable at 20 per cent.)

1. The purchase of a motor vehicle for £12,000 (gross) in cash.

2. The purchase of goods for £500 (net price quoted).

3. The sale of goods - net value £2,000 - for cash.

4. The sale of goods - net value £3,500 - on credit to S. Silver.