Advice on Exam

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
I was just wondering something.

If you were taking a Simulation paper, and the accounts did not balance on the first stage of the preliminary trial balance, what would be the best thing to do if you did not have much time left.

I was told that opening a suspense account would gain u some credit, but then you would have a value in the suspense account at the end, and where would that go on the P&L or balance sheet :roll:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Advice on Exam

    hi
    We were told that at PLB we could insert a suspense, like you said to gain some crdit.

    However last week we were told that you could not have suspense in year end p/l and B/S.

    The whole thing ties you up in knots . . .we must all be mad!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Advice on Exam

    Hi

    I did this last year and we were told that if you did not balance you should open a suspense account. At least then the examiner can see that you have shown initative at that you realise there is a problem to sort out had you had more time.

    I am sure that the suspense would sit in the P.L as an expense.... but dont quote me on that one.

    Best of luck
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Advice on Exam

    This topic has been discussed before http://www.aat.org.uk/forums/posts/list/10107.page

    My own thoughts are that a suspense account is only there to note that there has been an error or errors somewhere along the line. If you don't clear the suspense account before drawing up the final accounts you're basically just transferring the errors across. In the real world you would always clear the suspense account before preparing the P&L and B/S.

    That is unfortunately of no help when you're running out of time in the exam/skills test and can't get your TB to balance. Re-reading the previous discussion it seems the way to go is to add the suspense a/c as an current assent/current liability on the balance sheet.

    Chris

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Advice on Exam

    Ok thanks for your help, so basically just don't have one :P or try all else to get rid of it

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Advice on Exam

    you could try by looking for the amount you are out by. if you divide the figure by 1/2 you may have the figure on the wrong side (i.e. debit instead of credit) easy done in exam stress. if the figure you are out by is divisable by nine you may have reversed a figure.
    good luck with the exam hope this helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Advice on Exam

    I had to open a suspense account on my ETB for my FRA exam last June and I still passed. You will gain some credit for using it - as opposed to completely losing credit for not using it when maybe you should have - as you're showing applied knowledge in that you know there's an error somewhere but don't have time to fix it...

    If I remember correctly, the balancing entry goes onto the Balance Sheet as either a sundry debtor or sundry creditor depending on what it is.

    Robert

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