Aat Level 3 Advanced Bookkeeping

Front 1

What is the accounting equation ?

Back 1

Assets - Liabilities = Capital

Front 2

Double entry for a cash purchase of a non current asset

Back 2

Dr : Non-current asset at cost

Cr : Bank

Front 3

Double entry for a purchase of a non-current asset through a bank loan (2)

Back 3

Dr : Bank

Cr : Loan

and

Dr : Non-current asset at cost

Cr : Bank

Front 4

Double entry for a purchase of a non-current asset through hire purchase or finance lease

Back 4

Dr : Non-current asset at cost

Cr : Liability

Front 5

Double entry for a purchase of a non-current asset if VAT registered

Back 5

Dr : Non-current asset at cost

Dr : VAT control account

Cr : Bank or liability

Front 6

5 methods of funding ?

Back 6

Cash purchase

Loan

Hire purchase

Finance lease

Part exchange

Front 7

Double entry for a Depreciation Adjustment

Back 7

Dr : Depreciation Charges

Cr : Non-current asset accumulated depreciation

Front 8

Units of production Depreciation formula

Back 8

Number of units produced/life in number of units X (cost - residual value)

Front 9

Diminishing balance method of depreciation formula

Back 9

Depreciation rate X Carrying amount

Front 10

Straight line depreciation formula

Back 10

Cost - residual figure / useful life

Front 11

Double entry for disposal of a non current asset for cash (4 steps)

1 : remove cost of asset

2 : remove the accumulated depreciation charged to date

3 : account for the sale proceeds

4 : Balance off the disposals account to determine the gain of loss on disposal

Back 11

1. Dr : Disposals

Cr : Non-current asset at cost

2. Dr : non current asset accumulated depreciation

Cr : disposals

3. Dr : bank

Cr : Disposals

Front 12

Double entry for disposal of a non-current asset in part exchange for a new asset ( five steps ) :

1. Remove cost of asset

2. Remove the accumulated depreciation charged to date

3. Account for part exchange allowance

4. Balance off

5. Record any additional payment made for the part exchanged asset.

Back 12

1. Dr : Disposals

Cr : Non-current asset at cost

2. Dr : non-current asset accumulated depreciation

Cr : disposals

3. Dr : non-current asset at cost

Cr : disposals

4. Balance off

5. Dr : Non current asset at cost

Cr : bank

Front 13

Sales proceeds > carrying amount = ?

Back 13

Gain on disposal

Front 14

Gain or loss = ?

Back 14

Proceeds - carrying amount

Front 15

Double entry for accrued expenses adjustment

Back 15

Dr : expense account

Cr : accrued expenses

Front 16

Double entry for reversal of accrued expenses

Back 16

Dr : accrued expenses

Cr : expense account

Front 17

Double entry for prepaid expenses adjustment

Back 17

Dr : prepaid expenses

Cr : expense account

Front 18

Double entry for reversal of prepaid expenses

Back 18

Dr : expense account

Cr : prepaid expenses

Front 19

Double entry for accrued income adjustment

Back 19

Dr : Accrued income

Cr : income account

Front 20

Double entry for reversal of accrued income

Back 20

Dr : income account

Cr : accrued income

Front 21

Double entry for prepaid income adjustment

Back 21

Dr : income account

Cr : prepaid income

Front 22

Double entry for reversal of prepaid income

Back 22

Dr : prepaid income

Cr : income account

Front 23

Accruals and prepayments :

Assets and liabilities ?

Back 23

Assets : Accrued income

Prepaid Expenses

Liabilities : Accrued expenses

Prepaid income

Front 24

Double entry for closing inventory adjustment

Back 24

Dr : Closing inventory ( SOFP )

Cr : Closing inventory ( SPL )

Front 25

Double entry for an irrecoverable debt

Back 25

Dr : Irrecoverable debts ( SPL )

Cr : Sales ledger control account ( SOFP )

Front 26

Double entry for recovery of an irrecoverable debt previously written off

Back 26

Dr : Bank

Cr : Irrecoverable debt

Front 27

Double entry for a specific or general doubtful debt allowance

Back 27

Dr : Allowance for doubtful debts - Adjustments ( SPL )

Cr : Allowance for doubtful debts ( SOFP )

Front 28

Double entry for the opening allowance for doubtful debts to increase the closing allowance

Back 28

Dr : Allowance for doubtful debts- adjustments ( SPL )

Cr : Allowance for doubtful debts ( SOFP )

Front 29

Double entry for the opening allowance for doubtful debts to decrease the closing allowance

Back 29

Dr : Allowance for doubtful debts ( SOFP )

Cr : Allowance for doubtful debts - adjustments ( SPL )

Front 30

Double entry for contra entry

Back 30

Dr : PLCA

Cr : SLCA

Front 31

Double entry for Discounts received

Back 31

Dr : PLCA

Cr : VAT

Cr : Discounts Received

Front 32

Double entry for Discounts Allowed

Back 32

Dr : Discounts allowed

Dr : VAT

Cr : SLCA

Front 33

Double entry for if the business makes a profit for the year

Back 33

Dr : Profit or loss account

Cr : Capital

Front 34

Double entry for if the business makes a loss for the year

Back 34

Dr : capital

Cr : profit or loss account

Front 35

Cost of goods sold = ?

Back 35

Opening inventory + Purchases - Closing inventory

Front 36

Double entry for sale on credit

Back 36

Dr : SLCA

Cr : Sales

Front 37

Double entry for sale on credit

Back 37

Dr : SLCA

Cr : Sales

Front 38

Double entry for purchase on credit

Back 38

Dr : Purchases

Cr : PLCA

Front 39

Double entry for sale on credit

Back 39

Dr : SLCA

Cr : Sales

Front 40

Double entry for purchase on credit

Back 40

Dr : Purchases

Cr : PLCA

Front 41

Double entry for receiving payment from a sale on credit

Back 41

Dr : Bank

Cr : SLCA

Front 42

Double entry for sale on credit

Back 42

Dr : SLCA

Cr : Sales

Front 43

Double entry for purchase on credit

Back 43

Dr : Purchases

Cr : PLCA

Front 44

Double entry for receiving payment from a sale on credit

Back 44

Dr : Bank

Cr : SLCA

Front 45

Double entry for making payment for a purchase on credit

Back 45

Dr : PLCA

Cr : Expense account

Front 46

Suspense or journal ?

Both transactions left out

Back 46

Journal

Front 47

Suspense or journal ?

Both transactions left out

Back 47

Journal

Front 48

Suspense or journal ?

Balance transfer error ( GL incorrectly transferred to TB )

Back 48

Suspense

Front 49

Suspense or journal ?

Both transactions left out

Back 49

Journal

Front 50

Suspense or journal ?

Balance transfer error ( GL incorrectly transferred to TB )

Back 50

Suspense

Front 51

Suspense or journal ?

Single entry error - 1 DR or 1CR not both

Back 51

Suspense

Front 52

Suspense or journal ?

Both transactions left out

Back 52

Journal

Front 53

Suspense or journal ?

Balance transfer error ( GL incorrectly transferred to TB )

Back 53

Suspense

Front 54

Suspense or journal ?

Single entry error - 1 DR or 1CR not both

Back 54

Suspense

Front 55

Suspense or journal ?

Two debit or two credit

Back 55

Suspense

Front 56

Suspense or journal ?

Both transactions left out

Back 56

Journal

Front 57

Suspense or journal ?

Balance transfer error ( GL incorrectly transferred to TB )

Back 57

Suspense

Front 58

Suspense or journal ?

Single entry error - 1 DR or 1CR not both

Back 58

Suspense

Front 59

Suspense or journal ?

Two debit or two credit

Back 59

Suspense

Front 60

Suspense or journal ?

Error of principle - one of entries made to wrong acc

Back 60

Journal

Front 61

Suspense or journal ?

Both transactions left out

Back 61

Journal

Front 62

Suspense or journal ?

Balance transfer error ( GL incorrectly transferred to TB )

Back 62

Suspense

Front 63

Suspense or journal ?

Single entry error - 1 DR or 1CR not both

Back 63

Suspense

Front 64

Suspense or journal ?

Two debit or two credit

Back 64

Suspense

Front 65

Suspense or journal ?

Error of principle - one of entries made to wrong acc

Back 65

Journal

Front 66

Suspense or journal ?

Unequal amounts error

Back 66

Suspense

Front 67

Suspense or journal ?

Reversal of entries

Back 67

Journal

Front 68

Suspense or journal ?

Reversal of entries

Back 68

Journal

Front 69

Suspense or journal ?

Error of original entry

Back 69

Journal

Front 70

Suspense or journal ?

Reversal of entries

Back 70

Journal

Front 71

Suspense or journal ?

Error of original entry

Back 71

Journal

Front 72

Suspense or journal ?

Error of commission - entry to wrong acc

Back 72

Journal