Calculate the closing balance of the VAT Control Account (Standard Rate 20%) using the figures below. The opening balance was zero. Transaction Type Net Amount Sales £50,000 Purchases £22,000 Bad Debt Relief (VAT portion) £200

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£5,400 Credit. Output VAT on sales = $$$50{,}000 \times 20\% = 10{,}000$$$ (Credit). Input VAT on purchases = $$$22,000 \times 20\% = 4,400$$$ (Debit). Bad debt relief is a reclaim of output VAT previously paid, treated as Input VAT = 200 (Debit). Balance: $$$10{,}000\ (\mathrm{Cr}) - 4{,}400\ (\mathrm{Dr}) - 200\ (\mathrm{Dr}) = 5{,}400$$$ Credit.

Calculate the closing balance of the VAT Control Account (Standard Rate 20%) using the figures below. The opening balance was zero. Transaction Type Net Amount Sales £50,000 Purchases £22,000 Bad Debt Relief (VAT portion) £200

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