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AAT Level 3 > Advanced Bookkeeping > Flashcards

Advanced Bookkeeping Flashcards

1
Q

Name the steps for disposal of a fixed asset.

A
  1. Transfer the cost
  2. Remove the accumulated depreciation
  3. Post the sales proceeds
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2
Q

What is the double entry for ‘transferring the cost’ in disposal of a fixed asset?

A

Dr Disposal Account

Cr Non-current Asset Account

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3
Q

What is the double entry for ‘remove the accumulated depreciation’ in disposal of a fixed asset?

A

Dr Accumulated Depreciation Account

Cr Disposal Account

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4
Q

What is the double entry for ‘post the sales proceeds’ in disposal of a fixed asset?

A

Dr Cash

Cr Disposals Account

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5
Q

Name the steps for Part Exchange allowance.

A
  1. Transfer the cost
  2. Remove the accumulated depreciation
  3. Sell the old asset
  4. Post any additional cash paid
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6
Q

What is the double entry for ‘transferring the cost’ in a part exchange allowance?

A

Dr Disposal Account

Cr Non-current Asset Account

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7
Q

What is the double entry for ‘remove the accumulated depreciation’ in a part exchange allowance?

A

Dr Accumulated Depreciation

Cr Disposal Account

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8
Q

What is the double entry for ‘selling the old asset’ in a part exchange allowance?

A

Dr Non-current Asset Account

Cr Disposal account

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9
Q

What is the double entry for ‘post any additional cash paid’ in a part exchange allowance?

A

Dr Non-current Asset Account

Cr Cash

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10
Q

What is the equation for cost of sales?

A

Opening Inventory
+ Purchases
- Closing Inventory
== Cost Of Sales

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11
Q

How do you increase the size of the general allowance?

A

Dr Doubtful Debts Expense

Cr Allowance for Doubtful Debts

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12
Q

How do you decrease the size of the general allowance?

A

Dr Allowance for Doubtful Debts

Cr Doubtful Debts Expense

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13
Q

How do you account for specific allowance gone bad?

A

Dr Allowance for Doubtful Debts

Cr Receivables / SLCA

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14
Q

How to you account for a recovery of specific allowance?

A
  1. Dr Cash
    Cr Receivables
  2. Dr Allowance for Doubtful Debts
    Cr Bad and Doubtful Debts Expense
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15
Q

What steps do you take for eliminating/correcting a suspense account?

A
  1. What did they post?
  2. What should they have posted?
  3. What entry is required to fix the error?
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16
Q

What steps are required for a general allowance?

A
  1. Write off any bad debts
  2. Make any specific allowances
  3. Calculate any general allowances
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17
Q

What is an accrual?

A

An expense incurred by the business during the accounting period but no invoice has been received and it has not been paid yet.

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18
Q

What is a prepayment?

A

A payment for an item of expense before we have used it.

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19
Q

What is the double entry for accruals?

A

Dr Expense Account

Cr Accrual Account

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20
Q

What is the double entry for a prepayment?

A

Dr Prepayment Account

Cr Expense Account

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21
Q

How to account for an accrual for subsequent years.

A
  1. Reverse out last years accrual
  2. Post any cash paid this year
  3. Post any closing accruals
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22
Q

How to account for prepayments in subsequent years.

A
  1. Reverse out last years prepayment
  2. Post any cash paid this year
  3. Post any closing prepayments
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23
Q

What is an accrual? (IEAL)

A

LIABILITY

This means the balance b/d will be a credit

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24
Q

What is a prepayment? (IEAL)

A

ASSET

This means the balance b/d will be a debit

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25
Q

What is accrued income?

A

Earned income that hasn’t been paid for yet.

26
Q

What is the double entry for accrued income?

A

Dr Accrued Income

Cr Sales

27
Q

How do you eliminate accrued income?

A

Dr SLCA

Cr Accrued Income

28
Q

What is deferred income?

A

When we have been paid by the customer before providing the goods.

29
Q

What is the double entry for deferred income?

A

Dr Sales

Cr Deferred Income

30
Q

How do you eliminate deferred income?

A

Dr Deferred Income

Cr Sales

31
Q

How do you post a loss on Disposal?

A

Dr Profit or Loss Account

Cr Disposal Account

32
Q

How do you post profit on Disposal?

A

Dr Disposal Account

Cr Profit or Loss account

33
Q

What does capitalise mean?

A

Recording the item as an asset instead of an expense.

34
Q

How do you post depreciation?

A

Dr Depreciation Expense Account

Cr Accumulated Depreciation Account

35
Q

How do you eliminate an accrual?

A

Dr Accrual Account

Cr Expense Account

36
Q

How do you eliminate a prepayment?

A

Dr Expense Account

Cr Prepayment Account

37
Q

How do you account for a bank loan fri a fixed asset?

A
  1. Dr Cash
    Cr Bank Loan
  2. Dr Non-current Asset
    Cr Cash
38
Q

What is an Unpresented cheque?

A

Money going out of bank account that hasn’t showed up yet.

39
Q

What is an outstanding lodgement?

A

Money coming in to the bank account that hasn’t showed up yet.

40
Q

What is the double entry for a sale on credit with VAT?

A

Dr Receivables
Cr VAT
Cr Sales

41
Q

What is a double entry for a purchase on credit with VAT?

A

Dr Purchases
Dr VAT
Cr Payables

42
Q

How do you post a contra entry?

A

Dr Payables

Cr Receivables

43
Q

How do you account for an irrecoverable bad debt?

A

Dr Bad Debt Expense

Cr Receivables

44
Q

How do you account for Doubtful Debts Allowance?

A

Dr Doubtful Debts Expense

Cr Allowance for Doubtful Debts

45
Q

How do you post an opening inventory?

A

Dr Opening Inventory

Cr Inventory

46
Q

How do you post a closing inventory?

A

Dr Inventory

Cr Closing Inventory

47
Q

Another word for Receivables:

A

Sales Ledger Control Account

48
Q

Another word for Payables:

A

Purchase Ledger Control Account

49
Q

What is depreciation charge? (IEAL)

A

EXPENSE

50
Q

What is Accumulated depreciation? (IEAL)

A

LIABILITY

51
Q

What is machinery at cost? (IEAL)

A

ASSET

52
Q

What is opening inventory? (IEAL)

A

INCOME

53
Q

What is a prepayment? (IEAL)

A

ASSET

54
Q

What is an accrual? (IEAL)

A

LIABILITY

55
Q

What is the PLCA? (IEAL)

A

LIABILITY

56
Q

What is the SLCA? (IEAL)

A

ASSET

57
Q

What is deferred income? (IEAL)

A

LIABILITY

58
Q

What is accrued income? (IEAL)

A

ASSET

59
Q

What is the disposal account? (IEAL)

A

EXPENSE

60
Q

What is cash at bank (any account)? (IEAL)

A

ASSET

61
Q

what is carriage inwards/outwards? (IEAL)

A

EXPENSE

AAT Level 3 (1 decks)

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