Best Of
Re: Director Loan account Overdrawn
Hi @amir
There are several issues to consider:
1. Was the loan in excess of £10,000 at any time during the tax year? Assuming you have a payroll scheme in place,whether or not you declare a salary now the director may have already incurred a benefit in kind. However the director could repay a notional interest to the company to avoid this. Depending whether you already file a P11D the director may accept to suffer the income tax on the notional interest.Class 1 A NIC will also be due.
2. Will the salary be filed within 9 months and 1 day of the company's year end? if not the company will be liable to s455 tax - although a claim for repayment can be made when the director's loan is repaid (subject to Bed & breakfast rules).
Hope this helps
There are several issues to consider:
1. Was the loan in excess of £10,000 at any time during the tax year? Assuming you have a payroll scheme in place,whether or not you declare a salary now the director may have already incurred a benefit in kind. However the director could repay a notional interest to the company to avoid this. Depending whether you already file a P11D the director may accept to suffer the income tax on the notional interest.Class 1 A NIC will also be due.
2. Will the salary be filed within 9 months and 1 day of the company's year end? if not the company will be liable to s455 tax - although a claim for repayment can be made when the director's loan is repaid (subject to Bed & breakfast rules).
Hope this helps
Re: Suspense new balance
Tommy,
Bank loan is a liability and therefore CR 4,600
VAT owed is also a liability therefore CR 3,496
Fixed assets are an asset therefore DR 2000
Rent paid is an expense therefore DR 1896
Take your original DR balances of 172,600 + 2000 + 1896 = 176,496
Take your original CR balances 168,400 + 4600 + 3496 = 176,496
All good!
Bank loan is a liability and therefore CR 4,600
VAT owed is also a liability therefore CR 3,496
Fixed assets are an asset therefore DR 2000
Rent paid is an expense therefore DR 1896
Take your original DR balances of 172,600 + 2000 + 1896 = 176,496
Take your original CR balances 168,400 + 4600 + 3496 = 176,496
All good!
Re: Insurance on Credit Agreement. Double entry.
Hello,The principle - substance over form. The company is obtaining a loan facility from the third party to pay for an insurance expense.
Dear professionals, could you advise, please?
A Company received an Invoice form Insurer and separate Credit Agreement from third party to pay for insurance.
Third party company has settled the Invoice with Insurer and the Company pays to Third party company as per Credit Agreement on monthly basis.
How this should be treated in accounts, please?
Could you help, please?
Thank you in advance.
Dr Insurance expense, Cr Third party, with the insurance value.
Dr Interest expense, Cr Third party, with the cost of the facility monthly or in total at year-end.
Dr Third party, Cr Liabilities (remember to split liabilities into current and long-term at year end), with monthly payments or in total at year-end.
Re: I'm not sure about my Situation regarding my AAT level 2 studies?
Hi MadLib
My direct experience comes from other industries; however I think some general truths still hold.
1) Do continue with your course. It demonstrates self-motivation and commitment. L2 also teaches gives you knowledge and skills which are needed whichever route to accounting you follow.
2) Yes; keep looking for an apprenticeship. Competence is the combination of training, skills, experience, the last of which can only be gained through actually doing the job.
It may be that the apprenticeship recruitment cycle is tied into the academic year. This could mean that opportunities are a bit limited at the moment. As A-level studies are not competing for your time this year, perhaps you would be able to research this and prepare yourself for the "recruitment season"?
It may also be worth trying to get any job in a medium to large business. Once you have your foot in the door you may find other opportunities for career progression within and organisation, continuing AAT at evening classes or by distance learning. One friend of mine started off in the kitchens of a media business and is now directing TV programmes.
3) Yes, you should mention your current studies. As well as demonstrating your self-motivation and discipline, one of AAT's fundamental principles is integrity; you must be straightforward and honest in all professional and business relationships.
I found you post easy to read and understand. This is important as accountants spend a lot of time explaining their work to non-accountants; however I suggest you do a little revision on the use of capitals. (I need to reduce my use of the word "however" - nobodies perfect!)
Good luck.
My direct experience comes from other industries; however I think some general truths still hold.
1) Do continue with your course. It demonstrates self-motivation and commitment. L2 also teaches gives you knowledge and skills which are needed whichever route to accounting you follow.
2) Yes; keep looking for an apprenticeship. Competence is the combination of training, skills, experience, the last of which can only be gained through actually doing the job.
It may be that the apprenticeship recruitment cycle is tied into the academic year. This could mean that opportunities are a bit limited at the moment. As A-level studies are not competing for your time this year, perhaps you would be able to research this and prepare yourself for the "recruitment season"?
It may also be worth trying to get any job in a medium to large business. Once you have your foot in the door you may find other opportunities for career progression within and organisation, continuing AAT at evening classes or by distance learning. One friend of mine started off in the kitchens of a media business and is now directing TV programmes.
3) Yes, you should mention your current studies. As well as demonstrating your self-motivation and discipline, one of AAT's fundamental principles is integrity; you must be straightforward and honest in all professional and business relationships.
I found you post easy to read and understand. This is important as accountants spend a lot of time explaining their work to non-accountants; however I suggest you do a little revision on the use of capitals. (I need to reduce my use of the word "however" - nobodies perfect!)
Good luck.
Re: Posting Items to Sales Ledger Control
Hi. This caught me out also. The amount is refunded in cash so the bank account has to be credited (reduction in an asset). The double entry is that the Sales ledger control account needs to be debited. Unlike a credit note, which would be a credit entry in the SLCA (as it reduces the asset/ the amount owed), the cash refund does not reduce the money owed by the customer and is therefore a debit. I hope that helps.
Re: Capital allowance computation
@SophieChall
No as far as the calculations are correct you won't get marked down on the layout. Personally my layout differed from AAT because each of us has their own way how to break everything down.
As far as the calculations are clearly stated and workings are correct then you'll be fine.
No as far as the calculations are correct you won't get marked down on the layout. Personally my layout differed from AAT because each of us has their own way how to break everything down.
As far as the calculations are clearly stated and workings are correct then you'll be fine.
Re: Going to level 4 from level 3
I'm not going to lie Level 4 is very tough from my perspective, and it felt like a massive jump for me even having just completed Level 3. If I can give any advice, go to First Intuition and consider their Self Study packs, here's a link:
"https://www.firstintuition.co.uk/book-now/?fwp_provider=aat&fwp_level=professional-diploma-in-accounting&fwp_study_centre=aat-distance-learning&fwp_study_method=self-study"
They're mostly £35 and if you get one delivered, it basically has all the syllabus in - work through that before June and see if you think it's right for you. That means there'll be at least not too much commitment. They're honestly brilliant packs and well worth the money, I've used it and the exams I felt I best performed in I used one of their packs.
If you wanted to test whether you thought you could get through the whole thing, buy the one for Management Accounts: Decision & Control, as I've found that to be the toughest module. If you wanted one to ease you in and see if you could carry on, go for Credit Management - I've found that to be a nicer module (though be aware that that is an optional choice, so you'd only be able to pick one other if you decided to try that one).
If you had any other queries on anything just let me know, happy to help!
Ellis
"https://www.firstintuition.co.uk/book-now/?fwp_provider=aat&fwp_level=professional-diploma-in-accounting&fwp_study_centre=aat-distance-learning&fwp_study_method=self-study"
They're mostly £35 and if you get one delivered, it basically has all the syllabus in - work through that before June and see if you think it's right for you. That means there'll be at least not too much commitment. They're honestly brilliant packs and well worth the money, I've used it and the exams I felt I best performed in I used one of their packs.
If you wanted to test whether you thought you could get through the whole thing, buy the one for Management Accounts: Decision & Control, as I've found that to be the toughest module. If you wanted one to ease you in and see if you could carry on, go for Credit Management - I've found that to be a nicer module (though be aware that that is an optional choice, so you'd only be able to pick one other if you decided to try that one).
If you had any other queries on anything just let me know, happy to help!
Ellis
Re: Rawhide PLC Professional Synoptic, any tips on securing a pass?!
Hi, I'm resitting this exam (for the 2nd time) on Wednesday as well and honestly dont know how to feel about it. Going to send you a slide about the whole exam. I hope it helps!
Do let us know how it goes
Best of luck.
Do let us know how it goes
Best of luck.
Re: Green light test standard costing
the question asking you the total standard material cost (which means the budgeted quantity x price of the material) you need to see how much material is needed for each quantity, to find this out is 1020 (metres of raw material) divided by 850 units produced (budget because the business expects it)
the standard cost for each metre is given of £8.20.
Now that you have standard meter per unit you can calculate how many metres you will require to calculate the total standard material = 890 units x 1.2 meter per unit x £8.20 = £8757.60
hope it makes more sense.
Btw I am doing the same module
the standard cost for each metre is given of £8.20.
Now that you have standard meter per unit you can calculate how many metres you will require to calculate the total standard material = 890 units x 1.2 meter per unit x £8.20 = £8757.60
hope it makes more sense.
Btw I am doing the same module
Re: I have transferred from the AQ2013to 2016 his is Greek to me.can someone help clarify ?
@10453923 please get in touch with our dedicated customer support team via [email protected] or by giving us a call +44 (0)20 3735 2468 who will be able to guide you through the syllabus and what you need to do next
