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Hi I am one of the experts. 12k sales and 6k purchase then yes payable VAT is £1k. This is the standard VAT calculation based on 20%.
VAT is the balance sheet item so you do not take this vat to profit and loss account. You take Net Sales without VAT to P&L for calculation.
Hope this has answered your question?
No i am afraid you are wrong on Asset side of affair.
£2k were credit and £1k was debit. So £1k was the liability that you pay VAT to HMRC. So in the end this account balance is 0.00.
Just imagine, you have got sales of 12k and purchases of 6k. On sales you have received 2k and paid 1k on purchases. Now how much money have you got it hand? Answer: £1k. Now this 1k is sitting in your bank account. You will pay this £1k to HMRC as is your VAT liability. Once you have paid to HMRC then you will have no money left. Hope now you are clear?
It is alright dear. May be try requesting a phone call so that I can explain to you. VAT and corporation tax are two different tax regimes. In VAT account normally balance, in the end, is zero because once liability is paid to HMRC then there is no money left. Please do read my earlier example again and it will clarify the situation.
There will not be any money left in the end, please read it again,