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In March, Imtiaz Limited Made Payments of Cash from the Bank

Question 60

Multiple Choice

In March, Imtiaz Limited made payments of cash from the bank to trade payables for purchases of raw materials of £90,000. The company's suppliers charge VAT of 20% on all raw materials supplied. What is the correct double entry to record this payment of cash to trade payables?


A) Debit cash £90,000, Credit purchases £75,000, Credit VAT £15,000.
B) Debit trade payables control account £90,000, Credit purchases £75,000, Credit VAT £15,000.
C) Debit cash £90,000, Credit trade payables control account £90,000.
D) Debit trade payables control account £90,000, Credit cash £90,000.

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