POBC: THE VAT CONTROL ACCOUNT

OUTPUT TAX IS:

• VAT ON SALES

• TAX ON PROFIT

• VAT ON PURCHASES

• TAX ON SALARIES

A CREDIT BALANCE ON THE VAT ACCOUNT REPRESENTS:

• A LIABILITY - VAT OWED TO HMRC

• INCOME - VAT REFUND DUE

• AN ERROR ON THE VAT ACCOUNT

• ASSET - VAT REFUND DUE

INPUT TAX IS:

• VAT ON CLOTHING

• VAT ON FOOD

• VAT ON PURCHASES

• VAT ON SALES

A DEBIT BALANCE ON THE VAT CONTROL ACCOUNT REPRESENTS:

• A PAYMENT TO HMRC IS DUE

• VAT HAS BEEN UNDERPAID

• AN ERROR HAS BEEN MADE

• A VAT REFUND IS DUE

HOW OFTEN IS VAT USUALLY PAID

• MONTHLY

• QUARTERLY

• ANNUALLY

• WEEKLY

THE DOUBLE ENTRY WHEN A VAT REFUND IS RECEIVED IS:

• CREDIT BANK

  DEBIT VAT CONTROL

• CREDIT VAT CONTROL

  DEBIT SALES

• DEBIT BANK

  CREDIT PURCHASES

• DEBIT BANK

  CREDIT VAT CONTROL

YOU HAVE TO BE VAT REGISTERED TO CHARGE VAT ON SALES AND TO RECLAIM VAT ON PURCHASES

• TRUE

• FALSE

TO RECORD A PAYMENT TO HMRC IN RELATION TO VAT THE DOUBLE ENTRY IS:

• DEBIT BANK

  CREDIT VAT

• DEBIT VAT

  CREDIT PETTY CASH

• CREDIT BANK

  DEBIT VAT

• CREDIT BANK

  DEBIT RLCA

VAT ON IRRECOVERABLE DEBT IS RECORDED IN THE VAT CONTROL ACCOUNT AS A:

• DEBIT

• CREDIT

VAT ON PURCHASE RETURNS IS A CREDIT IN THE VAT CONTROL ACCOUNT?

• TRUE

• FALSE