Advanced Diploma Initial Assessment

Introduction

AAT Advanced Diploma in Accounting Initial Assessment

If you have work experience or qualifications within manual bookkeeping there may an option to claim exemption from the AAT Foundation Certificate and start at AAT Advanced Diploma.

To see if you are exempt take this online AAT course quiz which has questions that are designed to help the tutor’s at Premier Training assess and advise which is the most suitable level for you to start at. If you wish to take the test, please complete then click submit. The quiz is then automatically emailed to a Premier Training tutor for prompt marking and a Premier Training AAT course advisor will contact you with the result.

This assessment contains 5 Sections. You should attempt EVERY task.

Each task is independent and you will not need to refer to the answers from a previous task.

Read every task carefully to make sure you understand what is required.

Both minus signs and brackets can be used to indicate negative numbers UNLESS the task states otherwise.

The standard rate of VAT is 20%.

You must use a full stop to indicate a decimal point. For example write 152.75 NOT 152,75 or 152 75.

You may use a comma to indicate thousands, but you don’t have to. For example 150000 and 150,000 are both acceptable.

Where you need to enter a date it should be in the format DD/MM/YYYY. Do NOT use DD.MM.YY or DD-MM-YY.

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Section 1

Task a

Here are the cashbook totals at the end of January 20XX:

Cash £	Bank £	VAT £	Trade receivables £	Cash sales £		Cash £	Bank £	VAT £	Trade payables £	Cash purchases £
622	4230	80	26104	400		622	4230	40	12325	200

The cashbook forms part of the double entry system. Show the entries needed for the general ledger:

Account name	Amount £	Debit / Credit

Task b

Transfer each of the balances listed to the correct side of the trial balance and calculate the totals for debits and credits.

Account name	Amount £	Debit	Credit
Admin expenses	37350
Bank	6010
Capital	26000
Motor Vehicle	30550
Purchases	183600
Purchase Ledger control	34260
Rent and rates	14625
Sales	253690
Sales ledger control	21480
Travel Expenses	20335
TOTAL

Section 2

Premier Trading pays its employees through the bank every month and maintains a wages control account. A summary of last month’s payroll transactions is shown below.

Item	£
Gross wages	200000
Income Tax	27122
NIC Employee	21789
NIC Employer	16228
Pension Employee	10000
Pension Employer	10000

Record the journal entries needed in the general ledger to:

Task a

Record the wages expense.

Account name	Amount £	Debit / Credit

Task b

Record HMRC liability

Account name	Amount £	Debit / Credit

Task c

Record net wages paid to the employees

Account name	Amount £	Debit / Credit

Task d

Record the pension fund liability

Account name	Amount £	Debit / Credit

Section 3

Task a

A payment by cheque for window cleaning for £105.00 has been entered in the relevant accounts as £150.00. The window cleaner is not registered for VAT.

Record the journal entries needed in the general ledger to remove the incorrect entry.

Account name	Amount £	Debit / Credit

Record the journal entries needed in the general ledger to record the correct entry.

Account name	Amount £	Debit / Credit

Task b

Identify the type of cost behaviour (fixed, variable or semi-variable) from the details given below. Indicate which is which by selecting the relevant column of the table below.

Statement	Fixed	Variable	Semi - variable
At 800 units, costs are £32.50 per unit At 1000 units, costs are £26 per unit
At 800 units, costs are £20,000 At 1000 units, costs are £23,000
At 800 units costs are £19,600 At 1000 units costs are £24,500

Section 4

Total factory activity for the period is forecast as follows:

Overheads	£117000
Labour Hours	7500
Machine Hours	3000
Units	25000

Task a

Complete the following table showing the possible overhead absorption rates that Aldrin Ltd could use. You should calculate your answers to 2 decimal places.

	Unit	Labour Hour	Machine Hour
Overheads (£)
Activity
Absorption Rate (£)

Task b

There is also the following data that relates to making one unit of a new product:

Material	2 litres at £15 per litre
Labour	15 Minutes at £15 per hour
Machine Time	10 Minutes

Complete the following table to calculate the total unit cost for each of the three overhead absorption rates you calculated in section 4(a). Calculate your answers to 2 decimal places:

Cost	Unit	Labour hour	Machine hour
Material (£)
Labour (£)
Direct Cost (£)
Overheads (£)
Total Unit Cost (£)

Section 5

Task a

Select the correct words which are missing in the sentences below

are two directors who want to discuss proposals. coming to see you this afternoon.

Task b

Select the correct words which are missing in the sentences below

Over the past years, many people have been organising the meetings get the funding established.

Task c

Select the correct word to complete the sentence.

It was not clear the business would make a profit this year.

Task d

Select the correct word to complete the sentence.

The directors wished they could done better.

Assignment Complete

You have now completed this assignment.

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