Can someone check my answer please!!?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Hi

I know this is so simple and thats why I'm doubting myself.

At the year end the accounts in the main ledger will be closed off and opening balances brought forward as at the 1st of the following year.
Explain how you would close off:
- direct costs accounts
- VAT Account

Is the answer just simply
- direct costs accounts transfered to P&L
- VAT account transfered to the balance sheet?

Thanks!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can someone check my answer please!!?

    Yep
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can someone check my answer please!!?

    I do take it that the question is asking you to basically produce a Trading profit and loss account and balance sheet? In which case your answer is correct, but if we're going to be picky, direct costs will go to the "Trading account" :lol:

    Regards

    Dean

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