AAT L2 Bookkeeping Transactions

Question 1

Which document is issued by a seller to a buyer to confirm the details and price of goods or services to be provided?

Accepted Answer

Quotation

Answer

Credit note

Answer

Purchase order

Answer

Remittance advice

Question 2

A business purchases goods on credit for £2,400 plus VAT at 20%. What is the correct double entry to record this transaction?

Accepted Answer

Debit Purchases £2,400, Debit VAT £480, Credit Trade Payables £2,880

Answer

Debit Trade Payables £2,880, Credit Purchases £2,400, Credit VAT £480

Answer

Debit Purchases £2,880, Credit Trade Payables £2,880

Answer

Debit Purchases £2,400, Credit Trade Payables £2,400

Question 3

What is the purpose of a sales day book?

Accepted Answer

To record all credit sales from sales invoices

Answer

To record cash sales only

Answer

To record all purchase returns

Answer

To record bank transactions

Question 4

A trade discount of 10% is offered on goods with a list price of £500. What amount appears on the invoice before VAT?

Accepted Answer

£450

Answer

£500

Answer

£550

Answer

£400

Question 5

Which of the following is classified as capital expenditure?

Accepted Answer

Purchase of a delivery van

Answer

Purchase of stationery for the office

Answer

Payment of staff wages

Answer

Payment of electricity bill

Question 6

In the accounting equation, if assets are £50,000 and liabilities are £18,000, what is the capital?

Accepted Answer

£32,000

Answer

£68,000

Answer

£18,000

Answer

£50,000