AAT Approved

Introduction

Premier Training

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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