AAT Basic Accounting 2 Assignment 2

19 Questions | Total Attempts: 321

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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


Questions and Answers
  • 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