FRA June 2008 - ANSWERS

visha
visha Registered Posts: 218 ? ? ?
Check this out

Attachment not found.

Please see my posting below for a possible correction as I May have missed one Journal.

I appologise for this

Visha

Comments

  • *hayley-may08*
    *hayley-may08* Registered Posts: 43 ? ? ?
    Thankyou for that =)
    x
  • CathG
    CathG Registered Posts: 145 ? ? ?
    Thank you

    Thanks for the answers Visha - much appreciated.

    I've made a few errors - there's some numbers I don't recognise, but everything balanced so fingers crossed.

    Also I classed the purchase of the £800 computer as revenue expenditure - my argument being, it isn't alot to spend on a PC and they soon go out of date, so hopefully with my reasoning I'll still get the mark.:thumbup:
  • Monika01
    Monika01 Registered Posts: 17 Dedicated contributor ? ? ?
    Hi Visha, one question about the new equipment purchase. In the original question in the case of disposal was that no entries were made so I understood that not even the bank payment. Also in DR column equipment at cost is only £300 for new equipment but the new equipment cost was £ 1300, which would make the double entry DR equipment and CR Bank. I think in this case I made some extra entry which would make my TB still ballance. Your answers for the theory questions are perfect I could not remember these so I have written what was still in my brain. Yours are very reasonable. Thanks for posting the answers in.
  • Nizza
    Nizza Registered Posts: 9 Regular contributor ⭐ ? ⭐
    I Checked my answers and most of them are ok. I have brought down the balances on the bank account or wages account. Were we supposed to do that. My Balance sheet is out slightly but I got it to balance.
  • maxi1603
    maxi1603 Registered Posts: 1 New contributor ?
    There should be double entry for the bank account and new equipment.
    Dr Equipment 1000
    Cr Bank 1000
  • Monika01
    Monika01 Registered Posts: 17 Dedicated contributor ? ? ?
    Hi,

    thank you for the confirmation because if you think, you are suppose to do P&L and BS from the ETB.
  • MOHMEDSALIM PATEL
    MOHMEDSALIM PATEL Registered Posts: 184 ? ? ?
    i am bit confuse.

    Task 2

    actually bit confused because the question does actually says that new purchase of equipment paid 1000 from bank
    the part exchanged agreed 300
    the above transaction never been recorded.

    My answer as below please let me know if i have got the wrong understanding

    new equipment at cost a/c 1300
    bank````````````````````1000
    disposal a/c```````````````300

    therefore bank a/c````````1000 less than what actually recorded in balancesheet
  • ccreaven
    ccreaven Registered Posts: 119 ? ? ?
    did anyone list the 125 loss on disposal on the etb?
  • visha
    visha Registered Posts: 218 ? ? ?
    Moni,
    Maxi 1603
    Mohmedsalim Patel

    The bullet point on the question paper says
    "The balance of the amount owing for the new equipment of £1000 was paid from the bank"

    I presumed that that entry has already been made and I thought that The balance of £2700 in Equipment at cost a/c confirmed that the bank payment entry has been made. ( £1000 plus original cost of eqpt sold £1700)

    I was a bit perplexed when I saw that the balance in the accumulated depreciation a/c was £1875 and not £ 1275 as I would expect if there was only one asset in the Eqpt at cost a/c. BUT I DID NOT PAY MUCH ATTENTION TO IT. After deducting £1275 from 1875 there is a balance of £600 left. And that I presume is for another Equipment whose original cost is also £1000 and thefore leaving a NBV of £400 (1000 less 600)

    I believe that I have omitted to do an adjustment in the extended TB of

    DEBIT Equipment at cost.....£1000..................New a/c balance £2,300
    Credit Bank..................................£1000.......New a/c Balance £5,555

    One minor mistake will not make me incompetent for this section.

    Remember that the Examiner is not looking for the right answer but your competency. And if you have demonstrated those main 3 journals for the disposal a/c have been adjusted for in the extended TB; you will have proved your competency!

    Thanks for your help to show me of my mistake.

    Visha
  • ccreaven
    ccreaven Registered Posts: 119 ? ? ?
    Hi Visha, Where did you get the questions from?
  • Jadie
    Jadie Registered Posts: 14 Regular contributor ⭐ ? ⭐
    FRA Answers

    Hi can you please email the answers direct as i cant access them on this thread.


    Thanks very much

    Jadie

    [email protected]
  • ambitious
    ambitious Banned User Posts: 93 ? ? ?
    Thanks for the answers Visha. Now I know I've got to prepare for technician year!
  • Pencil
    Pencil Registered Posts: 97 ? ? ?
    Those answers all look good to me ( I had the Bank credited with £1000 for the disposal part tho')

    I'm also curious to know where you got the questions from....:confused1:
  • numberjunky
    numberjunky Registered Posts: 88 ? ? ?
    I too made Credit from the bank of 1000 and a Debit to Asset account and here is my reason.

    If, the money HAD already been entered, this would mean the total of 2700 was made up of the NEW equipment and the OLD asset, which was due for disposal (1700 + 1000). With this in mind, we know that later in the question we are asked to depreciate the NEW asset so........WHAT IS THE 200 DEBIT in Dep'n account? With the 1700 Asset fully disposed of, surely there should be no dep'n left ?

    Also, there is a balance left on the Accumulated Dep'n account when we take out the 1275 for the Disposal, so what asset is left to depreciate.

    Does anyone follow what I'm getting at?

    It's all very subjective but I think whatever we did, as long as the entries are correct, we will get full credit for competence.

    I beleive visha's answers are pretty much spot on apart from that slight error which he has now corrected. Well done. What is more amazing is how he remembered so much detail....maybe having a photographic memory is worthy of a higher salary than an accountant?

    PS - Just seen a similar post but decided to send anyway

    I passed anyway - sure of it.
    Level Four.....Shove it!
  • lucy1988
    lucy1988 Registered Posts: 74 ? ? ?
    I didnt get my trial balance to balance so i put a suspense account in and i managed to get my p&l and bs to balance but not sure if my figures are correct becaus ei thinki got one of my journals wrong. But do you think i would still get some marks, if i show that i know what im doing but not all the correct figures?
  • Kalpana Pankhania
    Kalpana Pankhania Registered Posts: 5 Regular contributor ⭐ ? ⭐
    Thanks Visha

    Hi Visha,

    Thanks for this clarification. I have done this journal in exam and so my adjustments in total came to 5965. I am now relieved.

    Kalpana
  • Leesa
    Leesa Registered Posts: 1 New contributor ?
    FRA - June 2008 - Answers

    I have tried the link for the PDF and it says it is not found
  • Tee
    Tee Registered Posts: 1 New contributor ?
    Thanks for the answers Visha :)
  • lucia
    lucia Registered Posts: 2 New contributor ?
    Pencil wrote: »
    Those answers all look good to me ( I had the Bank credited with £1000 for the disposal part tho')

    I'm also curious to know where you got the questions from....:confused1:

    The question papers are now on the site under past exam papers. x
  • mahdi87
    mahdi87 Registered Posts: 121 ? ? ?
    hi can any1 email me the answers plz on
    [email protected]
    thank you
  • Scotsmist
    Scotsmist Registered Posts: 1 New contributor ?
    £1000 for New Equipment

    This is my first post!!
    I went back at the end to change my answer, because when I re-read the question, it said
    The BALANCE of the amount owing for the new equipment of £1k was paid from the bank.

    In my mind I thought it cost £1k, £300 was given as part exchange, so therefore, £700 remained!!! as the balance - doh!!!!! I still balanced though!! Although, I really cant remember much about the paper and my answers.

    AS USUAL, I THOUGHT THE AAT WERE TRYING TO TRICK ME!!! I HAVE A COMPLEX ABOUT THIS :-)

    Roll on August!!
  • 80sGuitarSolo
    80sGuitarSolo Registered Posts: 21 Dedicated contributor ? ? ?
    Scotmist, it's a fair point - I read and reread the question over and over until deciding it meant £300 part ex and £1000 remaining. The wording was ambiguous (not for the first time in AAT papers!).
  • roy ramphul
    roy ramphul Registered Posts: 38 Regular contributor ⭐ ? ⭐
    I have just done the past paper and got the same answers as Visha, however, I noticed that the depreciation charge in the TB was 200, I think it should be 250 because if I was going to depreciate the asset in total without the depreciation already worked out before the sale of asset,the overall depreciation charge would have been 575.

    Therefore the depreciation charge should be in the TB 250.
  • clarisse
    clarisse Registered Posts: 8 Regular contributor ⭐ ? ⭐
    Fra June 2008 Exam

    Hi Visha,

    Do you know what the pass mark is for both sections of this paper.

    I had problems with the disposal a/c ,I still went on & tried to complete the P&l , then the b/s.

    I did get a figure for the net profit of £18000+, but unfortunately the b/s did not balance. If all the remaining answers are correct , is there anyway i might still scrap through.

    thanks

    Clarisse
  • visha
    visha Registered Posts: 218 ? ? ?
    Clarisse

    Don't worry about your results. From your comments it looks that you will be found competent. one or two mistakes does not make you incompetent.

    Remenber that AAT is an NVQ based qualification which means that you do not have to be 100% correct.

    If your overall understanding is fine the examiner will come on your side. They don't want to fail students!

    so don't worry. I am sure you will not be surpised to have passed your FRA when the results come out.

    have a nice, relaxed break. Thre is much hard work ahead of you. So relax and chill out.

    visha
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