AAT Level 2 Accounting Prep practice questions and answers 2026. Tap an option to test yourself — you'll see the correct answer and a plain-English explanation for every question. Free, no login.
Q21Review 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
✓ Correct answer: D. C. Davis
C. Davis has an error. The Net (£200) plus VAT (£40) should be £240, but the Gross is recorded as £250 — a cross-casting error that would cause the daybook totals to mismatch ledger entries.
Q22Which of the following are procedural errors when recording discounts in the general ledger? (Select all that apply)
✓ Correct answer: C. Posting a discount received to the debit side of the Payables Ledger Control Account
Discounts Received (income) reduce liabilities (Dr PLCA, Cr Disc Rec). Discounts Allowed (expense) reduce assets (Cr SLCA, Dr Disc Allowed). Errors involve reversing these entries or using wrong accounts.
Q23A 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.
✓ Correct answer: B. £768
The credit note follows the original invoice terms. Trade discount (20%) reduces £800 to £640. VAT (20%) on £640 is £128. Gross total is £640 + £128 = £768.
Q24A 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
✓ Correct answer: A. £46.50; Credit Bank
Imprest restoration equals total expenditure: £4.50 + £12.00 + £30.00 = £46.50. This amount is withdrawn to replenish the float, requiring a Credit to the Bank account.
Q25A 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.
✓ Correct answer: D. Dr PLCA £450; Cr SLCA £450
A contra entry offsets the balances. Debit the Payables Ledger Control Account (liability) to reduce it. Credit the Sales Ledger Control Account (asset) to reduce it.
Q26Which 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)
✓ Correct answer: C. Bank charges
Bank charges and direct debits originate from the bank, requiring cash book adjustments. Unpresented cheques and outstanding lodgements are timing differences handled in the reconciliation statement, not the cash book.
Q27Based 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
✓ Correct answer: B. 7300
Small consumable items like staplers and hole punches are classified as Office Stationery (7300). Office Equipment Cost (7350) is typically reserved for capital assets or significant equipment purchases that are depreciated. Travel (7400) and Sundry (7500) are unrelated categories.
Q28What 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)?
✓ Correct answer: A. Decreases both balances
A contra entry offsets receivables against payables. This transaction decreases the Sales Ledger Control Account asset balance and decreases the Purchase Ledger Control Account liability balance, effectively settling the debt.
Q29Which of the following errors would NOT be revealed by the trial balance, leaving total debits equal to total credits? (Select all that apply)
✓ Correct answer: D. Error of omission
Errors of omission, commission, and principle maintain equality. Casting errors and single-sided entries disrupt equality, appearing in the trial balance.
Q30The 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
✓ Correct answer: C. A sales return of £500 was recorded in the control account but not the individual customer account
Recording a £500 sales return in the SLCA but omitting it from the customer account reduces the control account balance. The schedule of debtors remains higher, creating the £500 discrepancy.
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