Mind Map by stephen.ainswort, updated more than 1 year ago
Created by stephen.ainswort over 5 years ago


Mind map with questions for the AAT level 2 Processing Bookkeeping Transactions (PBKT) examination.

Resource summary

1 Task 1
1.1 What
1.1.1 Preparing a book of Prime Entry, using ANALYSIS columns Sales Day Book Sales Returns Day Book Purchase Day Book Purchase Returns Day Book
1.2 Hints and Tips
1.2.1 Calculating VAT Net + 20% = Gross Gross / 6 = VAT Gross / 1.2 = Net Gross - Net = VAT Net + VAT = Gross
1.2.2 REMEMBER - The NET = The total of the Analysed Columns
1.3 Common Errors
1.3.1 1) Mis-calculating VAT and or other figures. 2) Entering Net in the Total Column and Total in the Net columns
1.4 Questions
2 Task 2
2.1 What
2.1.1 Posting from Books of Prime Entry to the Main and Subsidiary Ledgers
2.2 Common Errors
2.2.1 Reversal of Entries
2.2.2 Posting the net Amount to the control account
2.2.3 Selecting the incorrect account names in the main and subsidiary ledgers
2.3 Questions
2.4 Hints and Tips
2.4.1 Main Ledger = DOUBLE Entry - DEAD CLIC / PEARLS
2.4.2 Subsidiary Ledgers = Detail for Customers or Suppliers - NO Double entry here
2.4.3 Start with the General/Main Ledger
2.4.4 Go from Right to left (Net to Total)
2.4.5 Net always gets posted to the NAME of the Daybook eg Sales Returns Day Book is posted to the sales returns account
2.4.6 Subsidiary Ledger is always posted to the same side as the control account
3 Task 3
3.1 What
3.1.1 Entering items in to a 3 column cash book 20 Marks Total and balance the cash book
3.2 Common Errors
3.2.1 Adding or subtracting the discounts from the money paid/received
3.2.2 Inserting amounts into the incorrect columns
3.2.3 Miscalculating the incorrect totals
3.3 Questions
3.4 Hints and Tips
3.4.1 Discount has already been adjusted, so no need to adjust again
3.4.2 Cheques = BANK
3.4.3 Cash = CASH
3.4.4 Bank balance may be overdraw - CR bigger that DR
3.4.5 Deal with Cash sales/purchases first, these will require VAT calculation
3.4.6 Anything for Payables or Receivables will NOT need VAT calculating
4 Task 4
4.1 What
4.1.1 Posting from a 3-Column cash book to the Main and Subsidiary ledgers Cash book may or may not be part of the double entry system 15 Marks
4.2 Common Errors
4.2.1 Reversal of enteries
4.2.2 Posting to the Bank/Cash accounts when the cash book is part of the double entry system
4.2.3 Selecting the wrong discount account
4.3 Questions
4.4 Hints and Tips
4.4.1 Remember if you have Dr the cash book you will need to Cr the analysis column accounts.
4.4.2 Discounts will need to be posted twice, once in the discounts account and then in the control account
4.4.4 Always think DOUBLE ENTRY, if you are Dr the bank you will need to do the opposite in the other main ledger accounts
5 Task 5
5.1 What
5.1.1 Maintaining a Petty Cash Book and posting to the main ledger 20 Marks
5.2 Common Errors
5.2.1 Not reading the question
5.2.2 Selecting the incorrect account names
5.3 Questions
5.4 Hints and Tips
5.4.1 The names of the accounts to post to from the petty cash book will always match the column headers
5.4.2 Always check if there is an entry from the bank on the DR side of the PCB
5.4.3 READ THE QUESTION - Is the PCB part of the double entry system or not?
5.4.4 Imprest level will generally be what has been spent from the PCB
6 Task 6
6.1 What
6.1.1 Prepare a trial balance 20 Marks
6.2 Common Errors
6.2.1 Getting Paid and Received accounts the wrong way round
6.2.2 VAT may be owed to or from, Students over look this
6.3 Questions
6.4 Hints and Tips
6.4.1 If it is Paid, think of the double entry, CR bank therefore DR other account
6.4.2 Owed to = Liability, Owed from Asset
7 Task 7
7.1 What
7.1.1 Check Inv/CrNote against source documents
7.1.2 15 Marks
7.1.3 Reconcile a statement to an account
7.1.4 Calculate payments to be made to a supplier
7.2 Common Errors
7.2.2 Unable to calculate VAT when Sett Disc is involved
7.3 Hints and Tips
7.3.1 VAT is calculate on the LOWEST amount RECEIVABLE
7.3.2 Remember to Read the question FULLY prior to answering the task
7.3.3 Double check for Settlement Discount
7.4 Questions
8 Task 8
8.1 What
8.1.1 Complete an invoice or credit note which will include various types of discounts 15 Marks
8.1.2 Check receipts from customers and identify discrepancies
8.1.3 Identify hat the purpose of a remittance advice is
8.2 Common Errors
8.2.1 Forgetting to calculate discounts at the correct stage of the invoice
8.2.2 Not checking that discounts may have been taken incorrectly
8.3 Hints and Tips
8.3.1 Trade and Bulk discount calculated before net amount
8.3.2 Settlement discount calculated on the lowest amount receivable
8.3.3 Find out what the settlement discount terms are and check that they have been applied correctly
8.3.4 Read the question properly, when should the invoice be raised?
8.4 Questions
9 Task 9
9.1 What
9.1.1 Prepare a "T" account
9.1.2 Prepare a statement of account to be sent to a customer
9.1.3 15 Marks
9.2 Common Erors
9.2.1 Placing Balances on the wrong side of the T account
9.2.2 Placing balances on both sides of the account
9.2.3 Identifying what should appear on the statement of account
9.3 Hints and Tips
9.3.1 Remember BBB, B/d goes Below Bigger side
9.3.2 c/d = end of the time period
9.3.3 b/d = beginning of the next period
9.3.4 Read the question carefully, when are invoices due?
9.4 Questions
10 Task 10
10.1 What
10.1.1 Understand the double entry bookkeeping system
10.1.2 understand the Accounting Equation
10.1.3 Understand Capital and Revenue Transactions
10.1.4 Understand the use of Coding in accounting
10.1.5 15 Marks
10.2 Common Errors
10.2.1 Not understanding the Accounting Equation
10.2.2 Not understanding the difference between Capital and Revenue
10.3 Hints and Tips
10.3.1 Accounting Equation = Assets - Liabilities = Capital A - L = C 200 - 50 = 150
10.3.2 Capital = Non-Current Assets Motor Vehicle Machinery Office Equipment
10.3.3 Revenue = Everyday Transactions Sales Purchases Expenses
10.4 Questions
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