AAT Basic Accounting 2 Assignment 2
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Before attempting this assignment you should have read chapters 1 to 8 of your Osborne Book ”BASIC ACCOUNTING 2” and attempted the relevant chapter activities in your WORKBOOK. The pass mark for the assignment is 70% - should you fail then please review the areas where you are weak. If you are still having problems then please do not hesitate to contact AATFree
- 1.When T Ltd makes out a cheque for £200 and sends it to X Ltd , then T Ltd is known as:
- A.
The payee
- B.
The payer
- C.
The drawer
- D.
The debtor
- 2.To make sure cheques are safe when sending them by post, in case they are lost or stolen, you should
- A.
Not use the Royal Mail
- B.
Cross your cheques 'Account payee only, not negotiable'
- C.
Deliver it personally
- D.
Pay by card
- 3.£100 taken from the cash till and banked is shown in the cash books as: Debit cash column £100 Credit bank column £100
- A.
True
- B.
False
- 4.It is possible to have a credit balance of £100 in the cash column of the cash book
- A.
True
- B.
False
- 5.The sales ledger column total from cash book is debited to sales ledger control account in the general ledger
- A.
True
- B.
False
- 6.The discount allowed column total from the cash book is debited to the discount allowed account in the general ledger
- A.
True
- B.
False
- 7.The VAT column on the receipts side of the cash book is credited to the VAT account in the general ledger
- A.
True
- B.
False
- 8.Bank Reconciliation Statement; Balance at bank as per adjusted cash book £274 (i) Cheques not yet presented £730 (ii) Cheques deposited not yet recorded by bank £477 Balance at bank as per bank statement:
- A.
£527
- B.
£525
- C.
£500
- D.
None of the three.
- 9.When drawing up a Bank Reconcilaition Statement, if you start with a debit balance as per the Bank statement, the unpresented cheques should be:
- A.
Not required to be adjusted
- B.
Subtracted
- C.
Added
- D.
None of the above
- 10.A Bank Reconciliation Statement is:
- A.
A part of the cash book
- B.
A statement showing the causes of differences between the balance of cash book and bank statement.
- C.
A part of financial statement
- D.
None of the above.
- 11.Credit balance as per bank statement on 31.3.2013 is £22000. Cheques deposited but not cleared amount to £2000. Cheques issued but not presented of £8000. Balance as per cash book should be:
- A.
£32,000
- B.
£16,000
- C.
£28,000
- D.
£18,000
- 12.When money is withdrawn from the bank, the bank_________ the account of the customer.
- A.
Credits
- B.
Debits
- C.
Either (a) or (b)
- D.
None of the three
- 13.Most petty cash books operate using the imprest system. This means that the petty cash box must be kept in a secure place.
- A.
True
- B.
False
- 14.Which of the following expenses would you allow to be paid out of petty cash?
- A.
Gift to director retiring £500
- B.
Donation to local charity £300
- C.
Window cleaning £10
- D.
Taxi fare £7.80
- E.
Purchase of a printer £176
- 15.A firm's figures are given below. Opening Debtors: £10,200 Cash Received from debtors during the year: £30,400 Returns inwards:£2,700 Bad debts:£1,200 Debtors at end of year:£13,800 Cash Sales:£28,400 Total Sales will be?
- A.
£66,300
- B.
£66,000
- C.
£65,000
- D.
£66,500
- 16.A firm's figures are shown below. Cash Sales £50,000 Cash Collected from debtors £130,000 Bad Debts during the year £5,000 Debtors at the beginning £10,000 Total sales will be:
- A.
£170,000
- B.
£175,000
- C.
£180,000
- D.
£178,000
- 17.Accounts payable has ______________ balance
- A.
Credit
- B.
Unfavourable
- C.
Debit
- D.
Favourable
- 18.Total sales during the first year of business amounted to £70,000. Cash sales during the year amounted £10,000. Outstanding debtors at the end of the year £25,000. Cash received from debtors during the year will be:
- A.
£32,000
- B.
£30,000
- C.
£37,000
- D.
£35,000
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