FRA Skills Test - urgent help needed please!!!!!

Kati

Please help!!!!
I have just finished the FRA skills test and there’s one thing that I cannot get off my mind!
I got confused when posting the Journal entries (acquisition) to the Motor Vehicles – cost a/c, as there was already a Bank debit entry there, however it wasn’t the cost of the new car but the amount that was paid for it (after adding admin expenses, VAT and taking off part exchange allowance)! When doing practice simulations I have never come across this so I was totally confused! Plus as a result I could clear my suspense account. Could anybody please explain me how I should have posted those entries into Motor Vehicles – cost a/c in the Main Ledger!!!

Many Thanks in advance!!

phunkyphantom22

Duplicate post

Kati

I know, sorry! I just posted it into the wrong place and don't know how to remove it now:confused1:

trini

as the motor vehicle has been paid by cash/bank and part exchange the total bank payment including vat and motor expenses has all been posted to the motor vehicles account, you should have credited the vat element and the motor expenses in the motor veh. a/c and debited them to their respective accounts in the main ledger, then post the amount which was paid by part exchange to the debit side of the MV a/c and you should end up with the cost of the new vehicle.

Jentel

I know its probably overdue on this response but i don't log in very often. I have taken this simulation and i have to say it was awful. It seems like no one has managed to clear the suspense account let alone get the ETB to agree. I know the differ on the suspense should have been around £4100 but i differ about £19,000. Have spoken with others it seem as though it is the posting of the bank account of £14800 which according to the simulation was already posted, so if it was already posted then why oh why have we differed. If we could have posted it then we would not be having this dilema. Maybe some one from the AAT can answer. I got so confused in the end that i did not know what to do with the differ on the suspense account therefore messed up the whole ETB.

ambitious

I managed to pass this test without a suspense account. The tricky part is at the beginning where you must remove the cost of the vehicle by posting a credit entry to the motor vehicle costs account as an entry was hidiously made there. see the account and you'll realise the entry has already been made. I complained about it because that entry made in the motor vehicle cost account should have been highlighted better.

Kati

Thanks! That's exactly what i've done using common sense. Still awaiting results from my tutor, so fingers crossed.