FRA Exam Today!

Rao

Re Unit 5 FRA exam

Hi there

Just a comment on yesterday's exam. Overall I think I did ok but there were two parts I am unsure of. The first was the TB in Section 1. Mine did not balance so I used a suspense account which had a debit balance of 2575. Did anyone else get this figure. I am sure I posted all the entries to the TB and that these entries were correct as I checked them over five times!

In Section 2 I realised that I had slipped up in calculating advertising expenses even though my journal entry must have been correct. I added 1500 to the figure on the TB of 11250 (i think) but this was already included in the 11250 as was the debit in error (1500 added on again). So for the first entry accruals needed to be credited (the other side being the debit of 1500 to the suspense account) and for the second (debit in error) one simply deducts 1500 from the 11250 and debit the suspense account. This makes sense as the suspense account is debited with 2*1500 =3000, and combined with the 2500 credit for the fixed asset purchase, clears the suspense account. As a result of my error, my profit figure was out by 3000 (97000 instead of 100000) and this fed into the appropriation account. However I showed all my workings, so I should gain some credit.

I felt fairly comfortable with the written questions. How about everyone else?

Good luck!

Nicolaw1702

But it never said that the 2 £1500 were an error?

That confused me a little,

I think my Net profit was £96,500, No idea where this came from although at the time I was confident with it,

And i could do the appropriation account fine, so I think although the net profit was incorrect, it was just a minor error so Yeah it should still gain credit, especially if you showed your workings too

DAW1986

It said that the 1500 was debited to advertising twice, so you should have credited Advertising with 1500 and credited accruals with 1500 and then debited suspense with 3000, i think, well thats what i did anyway. My NP was 100000 which at the time i thought was abit suspect because it was so clean but afterwards the majority seemed to agree so I'm rather happy with the whole paper

Good Luck and lets hope Feb isn't too long away

Nicolaw1702

I think thats where I went wrong then with the net profit, as I never credited The expense acc, And i credited accruals with the whole £3000, which is why my net profit was out, was fine with the rest of the paper so Hope I dnt fail because of that little mistake:crying:

katieh

Hmmmm well reading all the post I would say we all got round about the same net profit depending on how we understood the question for closing stock. I - the obsolete stock but never added the stock we sold, I don't know why but something kept saying it was sold at a later date and should be included in the next yrs figures, but looking back now i should have + that.

Oh well stroll on Feb. Good luck to you all.:001_smile:

DAW1986

The stock was related too SSAP 9, that statement that says something about "stock should be valued at the lower of cost or Net realisable value" so you deduct the 4200 and charge the stock figure at what it was sold at, which i assume is the NRV, i'm sure people wont fail on small things like that, because it is just how you interpret the question.

Nicolaw yor mistake should just be one thats carried forward, i cant see getting a journal slightly wrong as being a fundemental error, dont worry about it, loads of people on my course did that journal in loads of different ways, you'll be fine

Nicolaw1702

I suppose, thanks :-)

and my tb balanced so thats something

DAW1986

Yeah thats does help.

We all arranged to go to the pub after the exam and me and one of the girls where out by 2.40 and then a couple more at 2.50 and we sat waiting in the canteen for the last lad who eventually came out at 4.40, he had tried to figure out the new capital balance for the retirement of the partner so he could eliminate his goodwill from his account, bless.

He thinks he has done ok though, i think he went back to use just the 30000's like you were supposed to

Nicolaw1702

How did u do goodwill?

did u split the £50,000 between the 3 partners using the old profit share ration , then to eliminate it did u use the 2 remaining partners with the new profit share ration?

I was out for 3:10, and was really confident

DAW1986

I think i debited the goodwill account three times, twice with 20000 and once with 10000 i think the ratio was 4:4:2 wasnt it. and then credited twice with 25000 i think

Cant quite remember

Nicolaw1702

Yes Asma had 50% and ben and Chris 25%, then the new ratio was Ben 60% and chris 40%,

I debited 3 times, and credited twice also, I think that was the correct way :001_tt2:

DAW1986

Yeah that was it, nice and easy splits really wasnt it

katieh

That is what I did as well.:001_smile:

DAW1986

Can anyone remember roughly what the figure was for thier TB, noone on my course could remember, and i'm not sure if mine was right or not, all i know is it balanced.

Nicolaw1702

78 something? I think

HoneyBun

I had £100,000 profit in section 2. Thought it was abit of a nice round number. Good to see others had the same!!:thumbup:

DAW1986

I cant fully remember but i just hope if i made errors they were errors carried forward

Nicolaw1702

what do u mean errors carried forward

DAW1986

so if i had calculated something wrong but had the right methodology (if that is a word, and not just a Dan-ism) then i still get the marks for the question (or some of the marks)

katieh

Not sure what tb figure was but I am sure mine wasn't 78 something but I balanced without a suspense account so I can't lose too many marks can I :001_unsure: (probably just em all lol)

DAW1986

I think mine was somewhere around 75185 or something, that figure is ringing bells, but it balanced without a suspense and it balanced first time, so either i'm brilliantly poor and manage to make the errors of the same value on both sides or I have done something right :S and now i'm not too sure which

LOL

Nicolaw1702

Dont go off that figure I said, It was a guess, lol!

But mine also balanced first time, and I am really confident with the section 1

it defo started with a 7 though :cool2:

mobility

I think i do ok till read what people said. my trial balance didnt balance but was out by exactly what prov for bad debts was. Dont remember net profit being even number so slightly worried but hey there is allways next June!

Nicolaw1702

U had to dr a bad debt expense and cr slca did u do that?

steveborner

Nicolaw1702 wrote: »

U had to dr a bad debt expense and cr slca did u do that?

as above....definately the correct thing to do......almost made the mistake of bad debt and removing completely!

DAW1986

Yeah, i nearly omitted it from my trial balance but just as i started adding it up i was like oooh...might need to post that here

katieh

Ooooooppppppsssss I didn't do that either I Dr prov for bad debts and Cr bad debts as I was only providing for them and not actually taking them away as there was still a possibilty they would get the money!!!!!!

Probably totally wrong. Getting the feeling I have failed this exam now!!!!:crying:

Oh well a very expensive mock exam lol

Nicolaw1702

Ure makin me wonder now :confused1:

Im not sure if I Dr bad debt expense & Cr SLCA

OR

I dunno!! ha!

And im not even thinkin about it now! I am goin to plan my xmas and decide what to do NYE!! woo hoo :thumbup::thumbup::thumbup:

Nicolaw1702

Im sure I credited accumulated provision or something like that

steveborner

dr prov bead debt
cr SLCA


i think that is what I put