Double-entry Bookkeeping
17 practice questions with explanations — 15 free to try
PassNova has 17 AAT Level 2 Accounting practice questions on Double-entry Bookkeeping, each with a clear explanation. A 15-question taster is free with no sign-up; the full bank is part of PassNova Premium. Updated for 2026.
Double-entry Bookkeeping: example questions & answers
2 worked examples with answers and explanations below. Try 15 AAT Level 2 Accounting questions free in the browser; the full 17-question Double-entry Bookkeeping bank is part of PassNova Premium.
In double-entry bookkeeping, which statement correctly describes the rule for recording an increase in an asset?
- ADebit the asset account✓
- BCredit the asset account
- CDebit a liability account
- DCredit the capital account
Answer: Assets are increased by debit entries. The dual effect means every debit has a corresponding credit elsewhere in the ledger.
A business pays £500 cash to a supplier to settle an amount owed. What are the correct double entries?
- ADebit Purchases £500, Credit Bank £500
- BDebit Payables £500, Credit Bank £500✓
- CDebit Bank £500, Credit Payables £500
- DDebit Bank £500, Credit Purchases £500
Answer: Settling a payable reduces the liability (debit Payables) and reduces the asset cash (credit Bank). No expense is recorded because the purchase was already entered on credit.