Accrual

I am attempting a mock and am on the journal adjustments to the T.B. Can anyone help?

Accountancy fees of £1500 need to be accrued.

There is no heading in the T.B for Accountancy Fees so I

Debit - ?
Credit - Accruals

There is a heading for Consultancy Fees should it be debited to that?

Thanks
Julie:001_smile:

Comments

  • PAMDILL
    PAMDILL Registered Posts: 721 ? ? ?
    Why not just set up another nominal account labelled Audit and Accountancy fees - that is a common ledger account, if they have number codes for their ledger accounts just number it in the region of the consultancy fees etc.
  • princess
    princess Registered Posts: 80 ? ? ?
    How about a suspense account???
  • jewels.p
    jewels.p Registered Posts: 1,774
    PAMDILL wrote: »
    Why not just set up another nominal account labelled Audit and Accountancy fees - that is a common ledger account, if they have number codes for their ledger accounts just number it in the region of the consultancy fees etc.

    I thought in Exams you had to use the headings that are already there. Can you add more?
  • A-Vic
    A-Vic Registered Posts: 6,970
    jewels.p wrote: »
    I thought in Exams you had to use the headings that are already there. Can you add more?

    Is this on sage?

    If so use the accountancy fee's one otherwise id use the name given
  • jewels.p
    jewels.p Registered Posts: 1,774
    A-Vic wrote: »
    Is this on sage?

    If so use the accountancy fee's one otherwise id use the name given

    No its not on Sage it is the written practice exam. So would you use Consultancy Fees in an exam then as this is the only heading that I thought would be appropriate?
  • A-Vic
    A-Vic Registered Posts: 6,970
    jewels.p wrote: »
    No its not on Sage it is the written practice exam. So would you use Consultancy Fees in an exam then as this is the only heading that I thought would be appropriate?

    No id definitely use accountancy fee's consultancy is something totally different
  • lori
    lori Registered Posts: 25 Dedicated contributor ? ? ?
    In the adjustment column Debit the 1500 to consultancy fees and if there is not a heading alredy there for accruals write it at the bottom and Credit 1500 (in adjustments)
    the opposite if there is a prepayment
    lori
  • jewels.p
    jewels.p Registered Posts: 1,774
    A-Vic wrote: »
    No id definitely use accountancy fee's consultancy is something totally different

    There isnt one for Accountancy Fees that is why I didnt know where to post it.
    Thanks anyway :001_smile:
  • jewels.p
    jewels.p Registered Posts: 1,774
    lori wrote: »
    In the adjustment column Debit the 1500 to consultancy fees and if there is not a heading alredy there for accruals write it at the bottom and Credit 1500 (in adjustments)
    the opposite if there is a prepayment
    lori


    There is one for accruals but not Accountancy Fees. So if there is no heading in the actual exam for what I am doing I will just add one at the bottom.
    Thanks:001_smile:
  • jewels.p
    jewels.p Registered Posts: 1,774
    jewels.p wrote: »
    There isnt one for Accountancy Fees that is why I didnt know where to post it.
    Thanks anyway :001_smile:


    Just read that back and it sounds cheeky. I didnt mean to be just incase you think it is!:blushing:
  • blobbyh
    blobbyh Registered Posts: 2,415
    Posting it to anything other than accountancy fees would be disregarding what the question is specifically asking. If no account exists, then create one (just as you would in real life); you never know, this 'thinking outside the box' could be what the question setter is actually testing for.

    Posting to a suspense account might make your TB balance but that's showing Foundation level aptitude and I think you should be demonstrating greater problem solving abilities at Intermediate level.
  • jewels.p
    jewels.p Registered Posts: 1,774
    blobbyh wrote: »
    Posting it to anything other than accountancy fees would be disregarding what the question is specifically asking. If no account exists, then create one (just as you would in real life); you never know, this 'thinking outside the box' could be what the question setter is actually testing for.

    Posting to a suspense account might make your TB balance but that's showing Foundation level aptitude and I think you should be demonstrating greater problem solving abilities at Intermediate level.

    Thanks Robert I will do what you have said as you sound like you know what you are doing.:001_smile:
  • ema192
    ema192 Registered Posts: 107 ? ? ?
    you can print the answers off this website if it helps aswell just for reference.
  • A-Vic
    A-Vic Registered Posts: 6,970
    jewels.p wrote: »
    Just read that back and it sounds cheeky. I didnt mean to be just incase you think it is!:blushing:

    Thats fine i wasn't very clear i ment to say what robert said write in a new account i shows competence and you would definitely not get marked down for that
  • Brent.U
    Brent.U Registered Posts: 11 Regular contributor ⭐ ? ⭐
    I had much the same question. My tutor said create a new account.

    And if you think about it, like someone else here said earlier, if you put it anywhere else it no longer provides a true picture of the organisation, which is the idea of the final accounts.

    Good look in the exam. I'm in it too.
  • jewels.p
    jewels.p Registered Posts: 1,774
    Brent.U wrote: »
    I had much the same question. My tutor said create a new account.

    And if you think about it, like someone else here said earlier, if you put it anywhere else it no longer provides a true picture of the organisation, which is the idea of the final accounts.

    Good look in the exam. I'm in it too.


    Good Luck too :thumbup1:

    Julie:001_smile:
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