Are debtors and creditors on a balance sheet shown net of vat ?

[A M]

I am getting conflicting answers on this. Can anyone provide a source of information on this. Which scenario is correct;
1. Debtors & creditors shown net of VAT - do not enter VAT due as a creditor.

2. Debtors & creditors shown GROSS - enter VAT due as a creditor

[Janice E]

No 2 is correct

You show the debors and creditors gross - before VAT added and then have the VAT shown as a creditor or a debtor (if you are owed a refund)

Your profit is based on pre vat figures.

If you do No 1, you are not showing a true figure of your accounts as you owe the VAT man, but won't be showing it.

Hope this helps

[Onestep downfrom God]

Assuming you are VAT registered, all items in the P&L and B/S should be NET of VAT.
VAT due to HMRC (or debtor) is shown under creditors (or debtors)