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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
What is accrued income?
Earned income that hasn’t been paid for yet.
26
What is the double entry for accrued income?
Dr Accrued Income | Cr Sales
27
How do you eliminate accrued income?
Dr SLCA | Cr Accrued Income
28
What is deferred income?
When we have been paid by the customer before providing the goods.
29
What is the double entry for deferred income?
Dr Sales | Cr Deferred Income
30
How do you eliminate deferred income?
Dr Deferred Income | Cr Sales
31
How do you post a loss on Disposal?
Dr Profit or Loss Account | Cr Disposal Account
32
How do you post profit on Disposal?
Dr Disposal Account | Cr Profit or Loss account
33
What does capitalise mean?
Recording the item as an asset instead of an expense.
34
How do you post depreciation?
Dr Depreciation Expense Account | Cr Accumulated Depreciation Account
35
How do you eliminate an accrual?
Dr Accrual Account | Cr Expense Account
36
How do you eliminate a prepayment?
Dr Expense Account | Cr Prepayment Account
37
How do you account for a bank loan fri a fixed asset?
1. Dr Cash Cr Bank Loan 2. Dr Non-current Asset Cr Cash
38
What is an Unpresented cheque?
Money going out of bank account that hasn’t showed up yet.
39
What is an outstanding lodgement?
Money coming in to the bank account that hasn’t showed up yet.
40
What is the double entry for a sale on credit with VAT?
Dr Receivables Cr VAT Cr Sales
41
What is a double entry for a purchase on credit with VAT?
Dr Purchases Dr VAT Cr Payables
42
How do you post a contra entry?
Dr Payables | Cr Receivables
43
How do you account for an irrecoverable bad debt?
Dr Bad Debt Expense | Cr Receivables
44
How do you account for Doubtful Debts Allowance?
Dr Doubtful Debts Expense | Cr Allowance for Doubtful Debts
45
How do you post an opening inventory?
Dr Opening Inventory | Cr Inventory
46
How do you post a closing inventory?
Dr Inventory | Cr Closing Inventory
47
Another word for Receivables:
Sales Ledger Control Account
48
Another word for Payables:
Purchase Ledger Control Account
49
What is depreciation charge? (IEAL)
EXPENSE
50
What is Accumulated depreciation? (IEAL)
LIABILITY
51
What is machinery at cost? (IEAL)
ASSET
52
What is opening inventory? (IEAL)
INCOME
53
What is a prepayment? (IEAL)
ASSET
54
What is an accrual? (IEAL)
LIABILITY
55
What is the PLCA? (IEAL)
LIABILITY
56
What is the SLCA? (IEAL)
ASSET
57
What is deferred income? (IEAL)
LIABILITY
58
What is accrued income? (IEAL)
ASSET
59
What is the disposal account? (IEAL)
EXPENSE
60
What is cash at bank (any account)? (IEAL)
ASSET
61
what is carriage inwards/outwards? (IEAL)
EXPENSE

AAT Level 3 (1 decks)

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