UNIT 5 HELP LOSING HOPE!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Cna anyone help please to help me remember what type of thing go where on p&l and bs i am really struggling
Has anyone got any practise questions?

Also how to work out doubtful debt increase and decrease
I already know how to write a debt off im just not 100% sure how to do the provisions

thats as far as i am at the mo

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:UNIT 5 HELP LOSING HOPE!!!

    Hi

    The first thing is not to panic - deep breaths and smile :D

    Is it all P & L or just the trading bit, or just the expenses bit. The balance sheet shows the state of affairs at a certain point in time. You start off with the title (may seem obvious, but you lose marks if you don't) then list your fixed assets at cost, next column depreciation and then the final column is the net book value. Then you list your current assets (items that can generate cash easily) such a bank balance (but not an overdraft), stocks, prepayments and debtors less provision. Then list your current liabilities (items that need to be paid) creditors, accruals. CA - CL is net current assets. Fixed Assets and net current assets will give you a total.

    The final section is the Financed by section, which is capital or shares, balance from P & L account etc. The total from this should equal the one above.

    Clear as mud???? Hope this helps

    Increase/decrease in provision. If say the debtors is £1000 and the current provision is £30 and you are asked to increase it to 4% (which is £40), the difference is charged to P&L (as an expense) and then the new amount is put in the balance sheet, same for the a decrease if it £40 and you need to decrease to 3% (£30) you add the decrease to the GP as income.
    Eva :D

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