June 2007 - Task 1.6
jackiepowell
Registered Posts: 72 Regular contributor ⭐
Hiya
Need some help please if you can.
Calculate the general expenses.
Can someone explain why i am having to work it out for 2 months and not 3, also why is there an accrual? As they have already paid it for 3 months havent they, so wouldnt that be a prepayment?
Thanks
Jackie :001_unsure:
Need some help please if you can.
Calculate the general expenses.
Can someone explain why i am having to work it out for 2 months and not 3, also why is there an accrual? As they have already paid it for 3 months havent they, so wouldnt that be a prepayment?
Thanks
Jackie :001_unsure:
0
Comments
-
Year ending 31 march
Electricity paid in may (at the start of a new financial year for the period 01 Feb. to 30 April.
So the electricity payment for the period 01 Feb. to 31 March is missing (that’s why an accrual)
So calculation
135£ / 3= 45 £ for 2 month 90.00 Accrual
General expense 1750£ at the end of the financial year
Add the missing payment for 1 Feb. to 31 March 90
1750£+90£=1840£
I hope this helps
katrin0 -
I dont understand why it is missing as they paid it Feb-Apr - isnt march included in there?0
-
because the payment was during may so after the 31 march(end of financial year)
katrin0 -
answer to task 1.6 June 07 FRA
Hi, the year runs from 01 April 2006 to 31 March 2007.In May he paid a bill of £135 for a period ending 30 April which after our year end on the 31 March therefore there was an overdue of two months Feb and Mar. To get this its 135/3 x2 giving you 90.
Gen Exp have a dr bal therefore since this is an accrual you
Gen exp Acc
Bank 1750
Accrual B/d 90 to P&L 1840
1840 1840
HOPE THIS HELPS...:001_smile:0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 319 NEW! Qualifications 2022
- 157 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership