AAT L2 Bookkeeping Transactions 2

Question 1

A credit note is issued when:

Accepted Answer

Goods are returned by the customer or an error on the invoice needs correcting

Answer

A customer places a new order

Answer

A supplier delivers goods

Answer

The bank charges interest

Question 2

The purchases returns day book is used to record:

Accepted Answer

Credit notes received from suppliers

Answer

Invoices sent to customers

Answer

Cash refunds to customers

Answer

Petty cash vouchers

Question 3

A sole trader receives a prompt payment discount of 2% on an invoice of £1,000 plus 20% VAT. If the discount is taken, how much does the trader pay?

Accepted Answer

£1,176.00

Answer

£1,200.00

Answer

£980.00

Question 4

What does the term 'footing' mean in bookkeeping?

Accepted Answer

Adding up a column of figures

Answer

Entering a transaction in the wrong account

Answer

Transferring totals from day books to ledger accounts

Answer

Checking the bank statement against the cash book

Question 5

Which of the following best describes a remittance advice?

Accepted Answer

A document sent with payment to inform the supplier which invoices are being paid

Answer

A document requesting payment from a customer

Answer

A receipt for cash sales

Answer

A document from HMRC confirming VAT registration

Question 6

A business buys office furniture for £3,600 plus VAT at 20% on credit. The correct entry in the purchases ledger is:

Accepted Answer

Credit supplier account with £4,320

Answer

Credit supplier account with £3,600

Answer

Debit supplier account with £4,320

Answer

Credit supplier account with £720