In September, Hamza Limited Makes Cash Sales with a Net

Multiple Choice

In September, Hamza Limited makes cash sales with a net sales value of £2,400. The company is registered for VAT and charges VAT at the rate of 20% on the net sales value. What is the correct double entry to record these cash sales in the books of Hamza Limited?

A) Debit cash £2,880, Credit sales £2,400, Credit VAT £480.
B) Debit trade receivables control account £2,880, Credit sales £2,400, Credit VAT £480.
C) Debit cash £2,400, Credit sales £2,000, Credit VAT £400.
D) Debit trade receivables control account £2,400, Credit sales £2,000, Credit VAT £400.