Incomplete Records

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

I'm taking my FRA and ECR on the 18th and 20th June, being a fast track student. The ECR exam doesn't worry me too much, but I need help with FRA...

I don't understand how to do incomplete records, and they're pretty much guaranteed to appear in the exam. Can anyone please offer me some help, hints, tips, steps, methods, anything like that, cause I have only 1-2 weeks left. :cry:

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Incomplete Records

    This is how we were taught at college - a 5 stage process

    1) Produce an opening statement of affairs by listing the assets / liabilities at the beginning of the year (ie closing balances for last year) as the result will give you opening capital as assets - liabilities = capital

    2) Reconstruct the cash and bank book. Put in opening balances, and put every receipt/payment in.

    3) Deal with purchases - set up a creditors account.
    Enter in the opening balance (step 1), and enter any figures you already know - for example you alredy know the payments (step 2) and they have probably given you the closing balance. Therefore the only entry missing is purchases - so this is the figure that would make the T account balance

    Do the same process with the sales ledger control.

    4) Look through any expenses accounts where you know that there was a prepayment or accrual last year or this year. In the T account, reverse last years accrual/prepay and put in this years. Also enter in any payments made. The balancing entry can then be calculated as the expenses for the year.

    5) If you have followed these steps you will now be able to construct a P&L and balance sheet

    If you require further help just ask
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Incomplete Records

    Thank you so much!!! :D

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