AAT level 3 Complete Assignment Written Questions And Answers/2024.

How do you calculate gross profit? - correct answer Sales - cost of sales What is capital expenditure? - correct answer Spending on non-current assets Where does depreciation go on the SOFP? - correct answer Accumulated dep'n is deducted from the cost in non-current assets Where does los on the sale of NCA go in the financial statements? - correct answer As an expense in SOPOL What is the double entry for a sale on credit? - correct answer DR Trade receivables CR Sales Where is an overdraft shown on the SOFP? - correct answer Current liabilities Where does discount received go in the financial statements? - correct answer Under gross profit - other income Where do returns in go in the financial statements? - correct answer Deducted from sales in the trading account on SOPOL Where do returns out go in the financial statements? - correct answer Deducted from purchases in cost of goods sold Where do accruals go in the financial statements? - correct answer Current liabilities on SOFP Where to prepayment go in the financial statements? - correct answer Current assets on SOFP Which side of the cash account do bank charges go? - correct answer Credit Where does depreciation go in the SOPOL? - correct answer Expenses What is the double entry for drawing cash from the bank? - correct answer DR Bank CR Cash Herbert has paid £8k in advertising. £1K is prepaid. How much goes to expenses? - correct answer £7K What is the double entry when the owner takes goods for their own use? - correct answer DR Drawings CR Purchases Where does discount allowed go in SOPOL? - correct answer Expenses Which side does discount received go in the PLCA? - correct answer Debit Opening TR £10K, Credit sales £5K, Payments received £8k. What is closing TR balance? - correct answer £7K In a bank reconciliation what do you do with uncleared credits? - correct answer Deduct them from the cash balance What is error of reversal of entries? - correct answer Where DR and CR are on the wrong side in right accounts What is double entry for sales return from credit customer? - correct answer DR Sales returns CR SLCA Which side does the b/d go on provision for depreciation? - correct answer Credit (reduces the asset) What is the double entry for contra between sales and purchase ledger? - correct answer DR PLCA CR SLCA What is a non-current asset? - correct answer Asset which is kept in business for 1yr and which will bring economic benefit to business What is a current liability? - correct answer Amount owed which is due to be settled within next financial period What is a current asset? - correct answer Asset which is expected to be used within the next financial period What is a non-current liability? - correct answer Amount owed which is due to be settled in more than the next financial period Where does the provision for doubtful debts go on SOFP? - correct answer Deducted from trade receivables Wh