Mock Exam Five
5 AAT L2 Bookkeeping Controls
Assessment information:
You have 1 hour and 30 minutes to complete this practice assessment.
This assessment contains 10 tasks and you should attempt to complete every task.
Each task is independent. You will not need to refer to your answers to previous tasks.
Read every task carefully to make sure you understand what is required.
The standard rate of VAT is 20%.
Where the date is relevant, it is given in the task data.
Both minus signs and brackets can be used to indicate negative numbers unless task
instructions say otherwise.
You must use a full stop to indicate a decimal point. For example, write 100.57 not
100,57 or 100 57
You may use a comma to indicate a number in the thousands, but you don
For example, 10000 and 10,000 are both acceptable.
The tasks in this assessment are set in different business situations where the following
apply:
All businesses use a manual bookkeeping system.
Double entry takes place in the general ledger. Individual accounts of trade
receivables and trade payable are kept in the sales and purchases ledgers as
subsidiary accounts.
The cash book and petty cash book should be treated as part of the double entry
system unless the task instructions state otherwise.
The VAT is 20%.
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Task 1 (12 marks)
Organisations use different payment methods.
(a) Match each situation with the most appropriate payment method below.
(3 marks)
(b) For each of the three methods of payment below show whether each payment
method will reduce funds in the payers bank account on the date of payment, or
at a later date.
(3 marks)
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It is important to understand the type of errors in a bookkeeping system.
(c) Show what type of errors exist for the three examples shown below.
You may use each answer more than once.
(3 marks)
(d) Identify three reasons from the list below why a journal should be prepared by
a business.
(3 marks)
End of Task
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Task 2 (12 marks)
Payroll transactions are recorded using a wages control account.
Show the journal entries needed to record:
the total wages expense for the period
the net wages paid to employees
the HM Revenue and Customs liability
(12 marks)
Picklist: Bank, Employees NI, Employers NI, HM Revenue and Customs, Income tax,
Pensions, Wages control, Wages expense.
Journal to record the total wages expense for the period
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Journal to record the net wages paid to employees
Journal to record the HM Revenue and Customs liability
End of Task
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Task 3 (10 marks)
This is a customer in a sales ledger.
The customer has now ceased trading owing the amount outstanding, which includes
VAT.
(a) Record the journal entries needed in the general ledger to write off the
irrecoverable debt.
Do not enter zero in unused debit or credit cells.
(6 marks)
Picklist: Irrecoverable debts, Purchases, Purchases ledger control, Sales ledger
control, Sales, VAT, AS Traders.
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A new business has been started and a new set of accounts is to be opened.
A partially completed journal to record the opening entries are shown below.
(b) Complete the journal by placing each amount in either the debit or credit
column.
Do not enter zero in unused debit or credit cells.
(4 marks)
End of Task
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Task 4 (10 marks)
A VAT control account for the month of March is being prepared. At the end of
February, the VAT control had debit entries of £3,299 and credit entries amounting to
£9,883.
The following transactions have not yet been recorded in the VAT control account.
VAT total in the sales daybook £5,399
VAT total in the purchases daybook £1,612
VAT total in the discounts allowed daybook £144
VAT paid to HM Revenue and customs £6,195
Complete the VAT control account by placing the entries on the debit or credit
side:
show the balance brought down and whether it will be a debit or credit
balance
enter the VAT transactions for the month
show the balance carried down and whether it will be a debit or credit
balance, and
insert the total that will be shown in both the debit and credit columns after
the account has been balanced.
(10 marks)
Picklist: Balance b/d, Balance c/d, Purchases daybook, Sales daybook, Bank,
Purchases returns daybook, Sales returns day book, Discounts received daybook,
Discounts allowed daybook, Cash sales, Cash purchases, Irrecoverable debts written
off.
End of Task
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Task 5 (14 marks)
These are the balances in a purchases ledger at 1 December.
The balance of the purchases ledger control account on 1 December has not yet been
recorded. The account had debit entries amounting to £36,090 and credit entries
amounting to £58,985.
(a) Complete the reconciliation statement below by:
inserting the balance of the purchases ledger control account
inserting the total of the balances in the purchases ledger
calculating any difference.
(3 marks)
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(b) Which ONE of the reasons below could explain the difference you calculated
in (a).
(1 mark)
This a summary of transactions with credit customers for a business during December.
(c) Show whether each entry will be a debit or credit in the sales ledger account
control.
(8 marks)
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(d) What will be the balance brought down in the sales ledger control account at
1 January.
(2 marks)
End of Task
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Task 6 (10 marks)
A bank statement and cash book for October are shown below.
Check the bank statement against the cash book and enter:
Any transactions into the cash book as needed, including the relevant date
of each transaction and cheque number if relevant
The cash book balance carried down at 31 October
The cash book balance brought down at 1 November
Insert dates showing the day of the month and month as 3 letters e.g. 8 October,
insert date as 8 Oct , or 11 October insert date as 11 Oct .
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Picklist: Balance b/d, Balance c/d, Staff wages BACS, SAG Limited, CP Plc, DFX
Traders, NOS Limited, Gas Utilities DD, Bank charges, ASBO Traders, R Ltd, Cheque
007652, Counter credit.
End of Task
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Task 7 (14 marks)
A business bank statement for May showed an opening balance of £3,082 and a closing
balance of £2,369.
The cash book below has been checked against the bank statement and two
highlighted items have been identified as unmatched. A bank reconciliation statement
has been partially completed.
(a) Complete the bank reconciliation as at 31 May.
Do not use a minus sign for deductions or overdrawn balances.
(4 marks)
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(b) Check that the bank reconciliation statement in (a) has been completed
correctly by calculating:
The balance carried forward in the cash book
The total of each of the bank columns in the cash book after the balance
carried forward has been recorded
(2 marks)
A bank statement for a different business is shown below.
You are preparing a bank reconciliation statement at 31 May, starting with the balance
taken from the bank statement.
Cash book
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Bank statement
Picklist: Balance b/d, Balance c/d, Staff wages, W. Wren, DF Ltd, Ghol Limited,
X Traders, YTG Limited, V Ltd, Bank charges, ASO Traders, ABC Ltd, ECO Traders,
Cheque 0090807, Counter credit, CFG Ltd, ACE Plc, SDF Traders.
(c) Identify TWO transactions that should be entered in the bank reconciliation
statement as amounts to be added.
(4 marks)
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(d) Identify TWO transactions that should be entered in the bank reconciliation
statement as amounts to be subtracted.
(4 marks)
End of Task
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Task 8 (14 marks)
A suspense account has been opened with a balance of £90.
The error has been identified as an entry made in the general ledger. Office expenses
of £90 have been correctly posted to the cashbook, but no corresponding debit entry
was made to office expenses.
(a) Record the journal entries needed to record the correct entry and remove the
suspense account balance.
Do not enter a zero in unused debit or credit column cells.
(4 marks)
Picklist: Office expenses, Bank, VAT, SLCA, Suspense.
Journal to record the correct entry and remove the suspense account balance
Another error has been found in the general ledger and a suspense account has been
opened with a balance of £740.
The purchase ledger control account in the general ledger has been extracted and
included in the trial balance incorrectly as £5,999. The correct balance to be included is
£6,739.
(b) Record the journal entries needed to record the correct entry and remove the
suspense account balance.
Do not enter a zero in unused debit or credit column cells.
(4 marks)
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Picklist: Purchases returns, Bank, Purchases, PLCA, Suspense.
Journal to record the correct entry and remove the suspense account balance
A final error has been found in the general ledger.
Staff wages of £1,080 were posted to office expenses in error.
(c) Record the journal entries needed to remove the incorrect entry and record
the correct entry.
Do not enter a zero in unused debit or credit column cells.
(4 marks)
Picklist: Staff wages, Suspense, Office expenses, Bank, VAT.
Journal to remove the incorrect entry and record the correct entry
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(d) Show whether the following errors would create a suspense account balance
or whether no suspense account balance would be opened.
(2 marks)
End of Task
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Task 9 (10 marks)
The journal entries below have been prepared to correct two errors made in the general
ledger.
Record the journal entries in the general ledger accounts below and show the
balance carried down for sales and the sales ledger control account.
(10 marks)
Picklist: Balance b/d, Balance c/d, Sales, Bank, Suspense, Sales ledger control.
Sales
Amount Amount
Details Details
£ £
Balance b/d 136035
Total Total
Suspense
Amount Amount
Details Details
£ £
Balance b/d 560
Total Total
Sales ledger control
Amount Amount
Details Details
£ £
Balance b/d 32540
Total Total
End of Task
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Task 10 (14 marks)
On 31 October, a trial balance was extracted and did not balance. The debit column
totalled £55,511 and the credit column totalled £61,789.
(a) What entry is needed in the suspense account to balance the trial balance.
Do not enter a zero in the unused column cell.
(1 marks)
The journal entries to correct all bookkeeping errors and a list of balances as they
appear in the trial balance are shown below.
(b) Complete the table below to show:
the balance of each account after the journal entries have been recorded
whether each balance will be a debit or credit entry in the trial balance
(8 marks)
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On 31 August, a partially prepared trial balance had debit balances totalling £152,214
and credit balances totalling £135,447.
The accounts below have not yet been entered in the trial balance.
(c) Complete the table below to show whether each balance will be a debit or
credit entry in the trial balance.
(3 marks)
(d) What will be the totals of each column of the trial balance after the balances in
(c) have been entered.
(2 marks)
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