Sales, Purchases & VAT
29 practice questions with explanations — 15 free to try
3 of these 29 questions are in the free 15-question taster · the full topic is part of Premium
PassNova has 29 AAT Level 2 Accounting practice questions on Sales, Purchases & VAT, 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.
Sales, Purchases & VAT: example questions & answers
3 worked examples with answers and explanations below. Try 15 AAT Level 2 Accounting questions free in the browser; the full 29-question Sales, Purchases & VAT bank is part of PassNova Premium.
A business makes a credit sale of goods for £1,000 plus standard-rate UK VAT at 20%. What is the total amount the customer owes?
- A£1,000
- B£1,200✓
- C£1,020
- D£800
Answer: VAT at 20% on £1,000 is £200, so the customer owes the £1,000 net plus £200 VAT, totalling £1,200 gross.
On a standard-rate sales invoice, how is the output VAT charged to a customer recorded in the seller's books?
- AAs a debit entry in the VAT control account
- BAs a credit in the VAT control account✓
- CAs a debit to the sales account for the gross amount
- DAs an expense shown in the statement of profit or loss
Answer: Output VAT charged on sales is a liability owed to HMRC, so it is credited to the VAT control account. The customer's receivable is debited with the gross amount.
A purchase invoice shows a gross total of £600 including standard-rate UK VAT at 20%. What is the VAT amount?
- A£120
- B£100✓
- C£60
- D£500
Answer: To extract VAT from a gross figure, divide by 6 (because 20% VAT means gross = 120% of net). £600 ÷ 6 = £100, leaving a net amount of £500.