You can see what happens to the power inside the Vic 20 in the schematic.
Pins four and five are connected together and supply the regulated +5V. This supply is
switched by SW1A.
Pins one, two and three are connected together and make the ground return for the +5V.
This connection is not switched.
Pins six and seven supply the 9V AC which is used inside the Vic to generate the cassette
motor supply and also feeds to the user port. The feed to pin six is switched by SW1B and
the return on pin seven is fused by F1. As this supply is isolated in the standard Vic 20
power unit disconnecting either lead, by the switch or by the fuse blowing, will remove
this supply.