Cima C02 Exam Question No 23

Question No 23:

In July year 1, a company sold goods at VAT rate with a net value of $200,000, goods exempt from VAT with a value of $£50,000 and goods at zero VAT rate with a net value of $25,000.
The purchases in July year 1, which were all subject to VAT, were $161,000, including VAT. Assume that the rate of VAT is 15%.
The difference between VAT input tax and VAT output tax is?

A. Dr £9,000
B. Cr £5,850
C. Cr £9,000
D. None of these

Answer: C