AAT Level 2 Accounting Prep
Practice Test

A business incurred £2,000 for machine repairs but debited the Machinery at Cost account. Depreciation is charged at 20% per annum (straight-line). What is the impact on the Net Profit?

The Receivables Control Account balance is £15,500. Calculate the adjusted control account balance using the discovered errors listed below. Error Description Amount Sales Day Book overcast £100 Sales return omitted from Control Account £50 Customer balance omitted from List of Balances £150

Calculate the closing balance of the VAT Control Account (Standard Rate 20%) using the figures below. The opening balance was zero. Transaction Type Net Amount Sales £50,000 Purchases £22,000 Bad Debt Relief (VAT portion) £200

The initial trial balance total is £250,000. What is the redrafted trial balance total after processing the adjustments below? Adjustment Required Amount Accrue for electricity £500 Prepay for insurance £200

A suspense account shows a debit balance of £150. Which single error could explain this balance?

A contra entry of £400 is agreed to offset a balance in the purchases ledger against the sales ledger. Select the correct journal entry.

A VAT-registered supplier issues a credit note for £300 plus 20% VAT. How is this recorded in the VAT Control Account?

Machinery cost £40,000 with accumulated depreciation of £16,000. Depreciation is charged at 25% (reducing balance). Calculate the Depreciation Expense and Accumulated Depreciation for the current trial balance.

Identify which of the following scenarios is classified as an error of commission. Error Scenarios Posting an invoice to the wrong customer account Posting a vehicle purchase to motor expenses Omitting a purchase invoice entirely Recording a £54 sale as £45

The Cash Book shows a debit balance of £2,500. Calculate the updated Cash Book balance using the Bank Reconciliation data below. Item Amount Unpresented cheques £400 Outstanding lodgements £300 Bank charges (not in Cash Book) £50 Customer BACS receipt (not in Cash Book) £200

A VAT-registered business has been informed that a customer who owes £600 (including VAT at 20%) has been declared bankrupt. No payment will be received. Which debit entries are required to write off this debt?

Calculate the total VAT to be credited to the VAT Control Account based on the sales day book extract below (standard VAT rate is 20%). Invoice Ref Amount Type Value INV001 Net Value £4,000 INV002 Gross Value £2,400 INV003 VAT Only £300

A trial balance shows total credits exceed total debits by £90. An investigation reveals a sales return of £480 was correctly entered in the customer account but posted to the Sales Returns account as £390. Which journal corrects this?

A business paid an annual insurance premium of £9,000 covering the period 1 April 20X1 to 31 March 20X2. The financial year ends on 31 December 20X1. Which journal entry correctly records the prepayment?

Using the transaction totals below, calculate the closing balance of the Purchase Ledger Control Account. Transaction Type Amount Opening Balance (Credit) £10,000 Credit Purchases (Net) £20,000 VAT on Credit Purchases £4,000 Payments to Suppliers £18,000 Discounts Received £500 Contra with Sales Ledger £1,000

A purchase of office equipment for £2,000 on credit was completely omitted from the accounting records. Which journal entry corrects this error?

Calculate the net VAT payable to HMRC given the following figures for the quarter (Standard VAT rate is 20%). Category Amount Note Standard Rated Sales £100,000 Net figure Standard Rated Purchases £36,000 Gross figure Zero Rated Sales £10,000 Net figure

The Sales Ledger Control Account shows a balance of £50,000, while the list of balances from the Sales Ledger totals £49,800. Which error explains this £200 difference?

A machine with an original cost of £15,000 is sold. Which pair of journal entries correctly transfers the cost and accumulated depreciation to the disposal account?

How is the closing inventory balance recorded in the financial statements' year-end trial balance adjustments?

Review the Sales Daybook extract below. Which customer's transaction contains a cross-casting error affecting the Gross total? Date Customer Net (£) VAT (£) Gross (£) 01 May A. Smith 400.00 80.00 480.00 02 May B. Jones 150.00 30.00 180.00 03 May C. Davis 200.00 40.00 250.00 04 May D. Evans 500.00 100.00 600.00

Which of the following are procedural errors when recording discounts in the general ledger? (Select all that apply)

A customer returns goods with a list price of £800. The original invoice included a 20% trade discount and VAT at 20%. Calculate the total gross amount of the credit note.

A petty cash float is set at £200. Given the vouchers listed below, calculate the reimbursement amount required to restore the imprest and select the correct bank entry. Voucher No Description Amount 001 Office Milk £4.50 002 Postage Stamps £12.00 003 Window Cleaning £30.00

A business agrees to set off a balance of £450 owed to a supplier against £450 owed by the same company as a customer. Select the correct general ledger journal entry.

Which of the following items appear on a bank statement but require an adjustment in the Cash Book before the reconciliation statement is prepared? (Select all that apply)

Based on the chart of accounts provided, which Nominal Account Code should be used to record the purchase of a new stapler and hole punch? Code Account Name 7300 Office Stationery 7350 Office Equipment Cost 7400 Travel Expenses 7500 Sundry Expenses

What is the net effect of a contra entry on the balances of the Sales Ledger Control Account (SLCA) and the Purchase Ledger Control Account (PLCA)?

Which of the following errors would NOT be revealed by the trial balance, leaving total debits equal to total credits? (Select all that apply)

The Sales Ledger Control Account balance is £500 lower than the Schedule of Debtors total. Which error explains this discrepancy? Account Balance SLCA Balance £25,400 Schedule of Debtors £25,900 Difference £500