We model numerically the interaction of an ultrashort VUV laser pulse (FWHM = 10 fs, photon energy of 100 eV) with liquid water. The incident laser photons interact with water by ionizing water molecules and creating free electrons. These excited electrons are elastically scattered by water molecules and are able to produce secondary electrons via ionization. To track each free electron and its collisions event by event, we use the Monte Carlo method similar to (N. Medvedev and B. Rethfeld, Transient dynamics of the electronic subsystem of semiconductors irradiated with an ultrashort vacuum ultraviolet laser pulse, New Journal of Physics, Vol. 12, p. 073037 (2010)). This approach allows us to describe the transient non-equilibrium behaviour of excited electrons on femtosecond time scales. We present transient electron energy distributions and a time resolved energy transfer, i.e.: the changing kinetic energy of excited electrons, the increase of the energy of holes, and excitation of water molecules via elastic collisions. We compare results obtained with different models for the energy levels in liquid water: either assuming dense water vapour or an amorphous semiconductor with a band gap.