Here is a short quiz, picking out some of the technical areas, dealt with in each of the ten tasks, you will face in the assessment. Once you have had a go at it, you can watch me go through my answers below.

Health warning: This quiz does not cover every aspect of the BTRN assessment and the tasks here are not laid out in the same style for reasons of space. Make sure you have a go at the sample assessments on the AAT website, as these give a very good idea of what to expect.

Task 1

It is 30 June and a business has just received a cheque from a credit customer, A Ltd, for £1,900 in full settlement of their outstanding account balance.

Here is the account for A Ltd in the sales ledger of the business:

Date Details Amount £ Date Details Amount £
01 June Bal b/d 4,500 5 June Credit note 26 300
15 June Sales invoice 245 2,300 13 June Bank 4,200
21 June Sales invoice 273 3,500 20 June Credit note 32 400
   
  .

 

Is the cheque for £1,900 an overpayment or an underpayment?

Which transaction does the discrepancy appear to relate to?

 Task 2

A business has received two credit notes from suppliers for the last period; one from B Ltd for £100 (net) and one from C Ltd for £240 (gross).

What entry needs to be made in the purchase ledger account of B Ltd?

Account name Amount £ Debit/Credit
  .

 

Enter these two purchase credit notes into the purchases returns day book.

Date Details Credit Note number Total £ VAT £ Net £
1 July B Ltd 9983
1 July C Ltd C1726   .

 

Task 3

  • D Ltd purchases goods from another VAT registered supplier with a list price of £275 (excluding VAT). A trade discount of 10% is given with a further 2% discount if the invoice is paid within 14 days. D Ltd has a policy of not taking up any prompt payment discounts if offered. The VAT rate is 20%.
  • How much will D Ltd pay the supplier?

Task 4

A business has made a cash payment to E Ltd of £360 for cash purchases that included VAT, and a cheque payment for £350 to F Ltd.

Enter these transactions onto the credit side of the cash book and total each column.

Cash book – credit side

Details Cash £ Bank £ VAT £ Purchases ledger Cash purchases
Bal b/d 1,000
 .
 .
Total   .

 

Task 5

A business has set the Imprest level at £150 and at the start of July, the petty cash box was replenished to this level. During July, the business paid for two amounts out of petty cash; £45 (net) for repairs to a salesman’s car and £36 (gross) for stationery. When the petty cash box is replenished at the start of August, how much will need to be withdrawn from the bank?

 Task 6

A customer, called G Ltd, has bought 10 units of a product that has a net list price of £50. The customer receives a 10% trade discount. Another customer, called H Ltd, has purchased goods worth a gross value of £720. The VAT rate is 20%.

How would these two sales invoices be entered into the sales day book?

Date Details Invoice number Total £ VAT £ Net £
1 Aug G Ltd 25646
1 Aug H Ltd 25647   .

 

What will be the entries in the subsidiary ledger?

Account name Amount £ Debit/Credit
 .
  .

 

What will be the entries in the main ledger?

Account name Amount £ Debit/Credit
 .
 .
  .

 

 Task 7

The totals on the credit side of the cash book are shown below.

Details Cash £ Bank £ VAT £ Trade payables Cash purchases Office expenses
Total 2,400 9,600 400 9,600 1,500 500

 

If the cash book is not part of the double entry bookkeeping system, what will be the double entry posted to the main ledger?

Task 8

Complete the ledger account shown below and identify what the balance brought down on 1st September would be?

Sales ledger control account

Date Details Amount £ Date Details Amount £
1 August Bal b/d 43,290 18 August Bank 28,546
15 August Sales 32,476
 .
Total Total
   .

 

Task 9

Which side of the trial balance will the following ledger account balances appear on?

  1. Sales
  2. Purchases
  3. Motor vehicles
  4. Motor expenses
  5. Sales returns
  6. Purchases returns
  7. Discounts allowed
  8. Discounts received

Task 10

If the total value of assets of a business is £65,000 and the total value of capital is £20,000, what is the total value of liabilities?

Now you have had a go at it you can watch Nick go through the answers here.

Hopefully that will help you succesfully pass your Bookkeeping Transactions exam.