AAT · unit
Introduction to Bookkeeping | AAT Level 2
This unit provides students with an understanding of manual and digital bookkeeping systems, including the associated documents and processes.
1 hour 30 minutes
Exam length
70%
Pass mark
Computer-based exam
Format
On demand throughout the year
Sittings
Start studying Introduction to Bookkeeping | AAT Level 2 for free
Create a free account and start with the fundamentals — no card required.
Introduction to Bookkeeping — overview
This unit provides students with an understanding of manual and digital bookkeeping systems, including the associated documents and processes. Students will learn the basic principles that underpin the double-entry bookkeeping system and will learn that digital accounting systems are automating some of the stages in the process.
Students will learn how to check the accuracy of invoices, credit notes, remittance advices, statements of account and petty cash vouchers. They will know how to use these documents to make entries in sales and purchases daybooks, sales and purchases returns daybooks, and discounts allowed and received daybooks using account codes, as well as how to transfer those totals to the sales, purchases and general ledgers. They will learn that entering these into a digital bookkeeping system is the same process as entering the transactions manually, although the way they are entered will vary from system to system.
The United Kingdom (UK) government department responsible for collecting taxes, HM Revenue & Customs (HMRC), offers more than one method of accounting treatment when prompt payment discount (PPD) is allowed and received. However, students at this level are only required to use credit notes to adjust for PPD. Using this approach, credit notes are recorded in separate daybooks, a discounts allowed and/or a discounts received daybook, which removes the need for discount columns in the cash book. There is no requirement at this level for students to understand how to account for PPD by any other method. This unit refers to value added tax or VAT. This is an indirect tax operating in the UK, but this type of tax may also operate and be known by another name in other countries.
Completing the Level 2 Certificate opens the door to entry-level finance roles such as Accounts Administrator, Accounts Assistant, Accounts Payable Clerk, Purchase/Sales Ledger Clerk, Trainee Accounting Technician, or Trainee Finance Assistant — and it builds the double-entry foundation you need to progress to Level 3.
Learning outcomes
What you'll be able to do.
01
Understand how to set up bookkeeping systems
02
Process customer transactions
03
Process supplier transactions
04
Process receipts and payments
05
Process transactions into the ledger accounts
Introduction to Bookkeeping syllabus
The topics you'll cover in Introduction to Bookkeeping and their assessment weightings.
Understand how to set up bookkeeping systems
20%
Understand how to set up bookkeeping systems
20%- Business documents (invoice, credit note, remittance advice, statement of account)
- Books of prime entry and the cash book
- Ledgers: receivables, payables, general
- Coding systems and the trial balance
- The dual effect of transactions — debits and credits
Process customer transactions
20%
Process customer transactions
20%- Calculating invoice and credit note amounts (VAT, trade, bulk, PPD)
- Entering customer invoices and credit notes into books of prime entry
- Processing receipts from customers and allocating payments
Process supplier transactions
20%
Process supplier transactions
20%- Checking supplier invoices and credit notes for accuracy
- Entering purchase invoices and credit notes into books of prime entry
- Processing payments to suppliers, including PPD
Process receipts and payments
20%
Process receipts and payments
20%- Entering receipts and payments into the analysed cash book
- Petty cash book — imprest and non-imprest systems
- Totalling, balancing, and carrying down cash book balances
- Processing recurring receipts and payments
Process transactions into the ledger accounts
20%
Process transactions into the ledger accounts
20%- Transferring data from books of prime entry to the ledgers
- Totalling and balancing ledger accounts (carried down, brought down, debit and credit balances)
Subscription includes
What's included with your subscription.
Everything you get when you subscribe — across every AAT paper, not just Introduction to Bookkeeping | AAT Level 2.
Guided study plans
Week-by-week plans aligned to your sitting date — so you always know what to study next.
Video lectures
Full syllabus coverage from expert tutors, broken into focused 10-15 minute lessons.
CBE practice questions & mocks
Realistic computer-based exam questions and full mocks, marked with examiner-style feedback.
1-2-1 sessions
Book one-to-one time with a tutor for tricky topics, results reviews, or exam strategy.
Revision Bootcamp
Pre-sitting intensives to sharpen question technique and pin down high-mark topics.
Weekly student-support webinars
Drop-in calls where tutors walk through tough topics and answer questions live.
Introduction to Bookkeeping exam format
Everything you need to know about how Introduction to Bookkeeping is assessed.
Duration
1 hour 30 minutes
Format
Computer-based exam
Structure
5 learning outcomes, assessed by a single computer-based exam.
Sittings
On demand throughout the year
Pass mark
70%
How to pass Introduction to Bookkeeping
Expert tips from Learnsignal's AAT tutors to help you prepare effectively.
Drill double-entry until it's automatic
Every task in this exam comes back to debits and credits. Practise the same transaction types — sales, purchases, receipts, payments — until you can write the journals without looking up which side goes where.
Learn the daybooks cold
The six books of prime entry (sales, sales returns, purchases, purchases returns, discounts allowed, discounts received) are the spine of this exam. Know what each one is for and which ledger it feeds.
Practise PPD the AAT way
Prompt payment discount is handled by credit note at Level 2 — not by adjusting the cash book. The exam tests this specifically, so practise until you default to the right method.
Get comfortable with the digital question style
The CBA uses journal grids, dropdowns, and gap-fill questions. Use the AAT sample assessments on MyAAT at least twice before your real sit — the interface catches people out more than the content.
Balance your cash book and petty cash book
Totalling, balancing, and carrying down balances on the cash book and petty cash book is almost always tested. Practise imprest and non-imprest systems for petty cash until they're second nature.
Check everything — accuracy is graded
Pass mark is 70%. The exam gives you time to review — use it. Check totals add up, debits equal credits, and your entries are in the right daybook.
Ready to study Introduction to Bookkeeping | AAT Level 2?
Full AAT access — videos, mocks, mentoring, and the study planner — included with every Learnsignal plan.
See AAT pricing →Introduction to Bookkeeping — frequently asked questions
Common questions about Introduction to Bookkeeping — what's covered, how it's assessed, and how to prepare.
What does the Introduction to Bookkeeping exam consist of?+
Introduction to Bookkeeping is assessed by a single computer-based exam lasting 1 hour 30 minutes. You'll be tested across 5 learning outcomes, with questions including multiple choice, numeric gap-fill, and task-based entries that mirror real workplace activities.
How long do I have to complete Introduction to Bookkeeping?+
The exam itself is 1 hour 30 minutes. Most students spend 8–12 weeks studying the unit alongside other work, but Learnsignal's on-demand content lets you go faster or slower depending on your schedule.
What's the pass mark for Introduction to Bookkeeping?+
AAT uses a 70% pass mark across all assessments in this qualification. Your overall qualification grade (Distinction, Merit, or Pass) is calculated from weighted unit marks and the synoptic where applicable.
Do I need prior experience to study Introduction to Bookkeeping?+
Not necessarily. Introduction to Bookkeeping is taught from first principles, but the Level 2 assumes you've completed the level below (or have equivalent experience). Use AAT Skillcheck if you're not sure you're ready.
When can I sit the exam?+
AAT exams are on-demand — you book when you're ready, at an AAT-approved assessment venue. There are no fixed exam windows. Most students sit within two weeks of finishing their last topic.
How much does the exam cost?+
Exam fees are set by AAT and by the assessment venue where you book your sit. You pay a one-off AAT student registration fee when you first enrol (covering access to the qualification for its lifespan) and then a separate fee per unit assessment at booking. For current fee figures, check AAT's fees page and your chosen training provider — figures change year on year and vary by venue, so we intentionally don't quote a fixed number here.
What materials does Learnsignal provide for Introduction to Bookkeeping?+
Your Learnsignal subscription includes recorded lectures, interactive quizzes, topic-by-topic notes, past-style practice questions, and full mock exams — all mapped directly to the Q2022 syllabus and accessible 24/7 from any device.
Can I resit if I fail?+
Yes. Level 2 and Level 3 unit assessments have no resit restrictions. Level 4 follows the same on-demand model. AAT keeps your highest mark, so a resit never lowers your grade — though we'd rather help you pass first time.
Ready to start Introduction to Bookkeeping?
Get instant access to expert tutors, comprehensive study materials, and exam-focused preparation to pass your exam.
Start free →This page was last updated: