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132+ Free AAT ITBK Practice Questions

Prepare for the AAT Level 2 Introduction to Bookkeeping (ITBK) exam with instant access — no signup required.

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2026 Statistics

Key Facts: AAT ITBK Exam

70%

Pass Mark

AAT (all CBAs)

5 x 20%

Learning Outcomes

AAT Q2022 ITBK Specification

11 tasks

Assessment Tasks

AAT Q2022 ITBK Specification

1h 30m

Time Allowed

AAT Q2022 ITBK Specification

20%

UK Standard VAT Rate

HMRC / AAT ITBK

100

Free Practice Questions

OpenExamPrep

AAT ITBK is a Q2022 Level 2 bookkeeping unit assessed by a 1.5-hour computer-based assessment of eleven independent tasks with a 70% competency pass mark. It has five learning outcomes, each weighted 20%: understand how to set up bookkeeping systems; process customer transactions; process supplier transactions; process receipts and payments; and process transactions into the ledger accounts. Core content covers the accounting equation, capital vs revenue, coding, books of prime entry, day books, the cash book and petty cash imprest system, UK VAT at 20%, trade, bulk and prompt payment discounts, control accounts and the trial balance.

Sample AAT ITBK Practice Questions

Try these sample questions to test your AAT ITBK exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 132+ question experience with AI tutoring.

1In the accounting equation, which arrangement is correct?
A.Capital = Assets + Liabilities
B.Assets = Capital - Liabilities
C.Assets = Liabilities + Capital
D.Liabilities = Assets + Capital
Explanation: The accounting equation states Assets = Capital + Liabilities (often written Assets = Liabilities + Capital). It reflects that everything a business owns is funded either by the owner (capital) or by outsiders (liabilities), so the two sides always balance.
2A business buys a delivery van to use for several years. How should this expenditure be classified?
A.Revenue expenditure
B.Capital expenditure
C.A current liability
D.Drawings
Explanation: Capital expenditure is spending on non-current (fixed) assets that will be used in the business over the long term, such as a delivery van. It is recorded as an asset rather than expensed in full in the period of purchase.
3Which of the following is an example of revenue expenditure?
A.Purchase of new office building
B.Installation of a new machine
C.Buying a company car
D.Repairs to the office photocopier
Explanation: Revenue expenditure is the day-to-day running cost of the business that is used up within the period, such as repairs and maintenance. Repairing the photocopier maintains an existing asset rather than acquiring or improving a long-term one.
4Following the dual effect (double-entry) principle, every transaction is recorded with:
A.One entry in the general ledger
B.Equal debit and credit entries
C.Two debit entries
D.A single entry in a daybook only
Explanation: Double-entry bookkeeping records every transaction with equal debit and credit entries, reflecting the dual effect each transaction has. This keeps the accounting records in balance and underpins the trial balance.
5Which one of the following is a liability of a business?
A.Cash at bank
B.A bank loan
C.Trade receivables
D.Office equipment
Explanation: A liability is an amount the business owes to others. A bank loan is money owed to the bank and is therefore a liability. The other items are assets the business owns or is owed.
6What is the main purpose of using account codes in a bookkeeping system?
A.To increase the amount of VAT charged
B.To replace the trial balance
C.To uniquely identify and organise accounts for accurate posting
D.To calculate the owner's drawings
Explanation: Account codes give each customer, supplier and general ledger account a unique reference so transactions can be posted accurately and traced. Coding supports organised filing and is essential in computerised systems.
7In a digital (cloud) bookkeeping system, which task is typically automated?
A.Deciding the discount policy with customers
B.Creating a trial balance from the general ledger accounts
C.Negotiating supplier prices
D.Choosing which expenses are tax allowable
Explanation: Digital bookkeeping software automatically completes the transfer of data from books of prime entry to the ledgers and creates a trial balance from the general ledger balances, reducing manual posting errors. Judgement tasks such as setting discount policy remain with people.
8A business has assets of £85,000 and liabilities of £30,000. What is the capital?
A.£115,000
B.£30,000
C.£55,000
D.£85,000
Explanation: Capital = Assets - Liabilities = £85,000 - £30,000 = £55,000. This rearrangement of the accounting equation shows the owner's stake after deducting what is owed to outsiders.
9Which document is sent by a supplier to a customer to formally request payment for goods supplied on credit?
A.Remittance advice
B.Goods received note
C.Purchase order
D.Sales invoice
Explanation: A sales invoice is issued by the supplier to the customer stating the goods, amounts, VAT and total due, and it requests payment for a credit sale. It is the source document for entries in the sales daybook.
10What is the purpose of a credit note issued to a customer?
A.To request immediate payment
B.To order more goods
C.To reduce the amount the customer owes, e.g. for returns or PPD
D.To record cash received
Explanation: A credit note reduces the amount a customer owes, for example when goods are returned or to grant a prompt payment discount (PPD). At AAT Level 2, PPD is adjusted using credit notes recorded in a discounts allowed daybook.

About the AAT ITBK Exam

AAT Level 2 Introduction to Bookkeeping (ITBK) is a Q2022 unit of the AAT Level 2 Certificate in Accounting. It introduces manual and digital double-entry bookkeeping, books of prime entry, sales and purchases day books, the cash book and petty cash, VAT on invoices, ledger accounts and the trial balance, assessed by a 1.5-hour computer-based assessment with a 70% pass mark.

Assessment

Question count not published by the exam provider

Time Limit

1 hour 30 minutes

Passing Score

70% (competency threshold for all AAT CBAs)

Exam Fee

No standalone unit fee published; candidates pay AAT student registration plus an assessment fee set by their AAT-approved venue (AAT (Association of Accounting Technicians))

AAT ITBK Exam Content Outline

20%

Understand how to set up bookkeeping systems

Accounting equation, capital vs revenue expenditure, classifying assets, liabilities, income and expenses, coding systems, books of prime entry, ledgers and the role of digital bookkeeping.

20%

Process customer transactions

Checking and calculating sales invoices and credit notes, trade, bulk and prompt payment discounts, VAT, and recording entries in the sales and sales returns daybooks.

20%

Process supplier transactions

Checking supplier invoices and credit notes, reconciling supplier statements, calculating payments due, discounts received, and recording in purchases and purchases returns daybooks.

20%

Process receipts and payments

Recording receipts and payments in the cash book and petty cash book, the imprest system, VAT extraction, and allocating receipts against invoices and credit notes.

20%

Process transactions into the ledger accounts

Posting daybook totals to the general, receivables and payables ledgers, balancing ledger accounts, control accounts, the VAT account, and extracting a trial balance.

How to Pass the AAT ITBK Exam

What You Need to Know

  • Passing score: 70% (competency threshold for all AAT CBAs)
  • Assessment: Question count not published by the exam provider
  • Time limit: 1 hour 30 minutes
  • Exam fee: No standalone unit fee published; candidates pay AAT student registration plus an assessment fee set by their AAT-approved venue

Keys to Passing

  • Work through all 132 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

AAT ITBK Study Tips from Top Performers

1Learn the accounting equation and the debit/credit rules early, as they underpin every other topic in the unit.
2Always deduct trade and bulk discounts before calculating VAT at 20%, and extract VAT from gross amounts using the 1/6 fraction.
3Remember that at Level 2 prompt payment discounts use credit notes, not discount columns in the cash book.
4Practise posting daybook totals to the correct accounts and balancing ledger accounts until the routine is automatic.
5Use control account reconciliations to check that totals agree with the subsidiary ledgers, and learn which errors a trial balance will not reveal.
6Rehearse working within the 1.5-hour limit so your pace matches the eleven-task assessment.

Frequently Asked Questions

What is the AAT Level 2 Introduction to Bookkeeping (ITBK) exam?

ITBK is a Q2022 unit of the AAT Level 2 Certificate in Accounting. It is assessed by a computer-based assessment comprising eleven independent tasks covering double-entry bookkeeping, day books, the cash book, VAT, ledgers and the trial balance.

How long is the AAT ITBK assessment and what is the pass mark?

The ITBK computer-based assessment lasts 1 hour and 30 minutes. The pass mark is 70%, which is the competency threshold AAT applies to all of its computer-based assessments.

What topics does AAT ITBK cover?

ITBK covers five learning outcomes, each weighted 20%: setting up bookkeeping systems, processing customer transactions, processing supplier transactions, processing receipts and payments, and processing transactions into the ledger accounts, including VAT, discounts and the trial balance.

Is the AAT ITBK exam multiple choice?

The official assessment mixes objective questions with data-entry tasks rather than being purely multiple choice. This free bank provides 100 multiple-choice practice questions mapped to the same five learning outcomes to help you revise the underlying knowledge.

What VAT rate is used in AAT ITBK calculations?

ITBK calculations use the UK standard VAT rate of 20% unless a question states otherwise. Candidates must apply trade and bulk discounts before calculating VAT, and prompt payment discounts are adjusted using credit notes at this level.

Are prompt payment discounts recorded in the cash book in AAT ITBK?

No. At AAT Level 2, prompt payment discounts are adjusted using credit notes recorded in the discounts allowed or discounts received daybooks, which removes the need for discount columns in the cash book.