maybe mistake from AAT?

any2002uk
any2002uk Registered Posts: 88 ? ? ?
please see the past exam FRA December 2005.

in task 2.1 part (c) it said £10,000 was paid from bank account.Credit to Bank, Debit to cost.

So i put £10,000 in Bank credit columns then check the answer, AAT maybe mistake because the answer sheet did not show any £10,000 in credit of bank. but AAT put them in COST credit of £10,000??????????

i read very careful and put what AAT wrote and still make me loss mark. if i did not see the answer then i assume the bank figure would be £3532-£10,000= overdraw £6468 which i put it in balance sheet under current liabilities!!!!!!!!!! then my balance is not match!

why AAT write that way then do other way.

have you done the same mistake.

Comments

  • AdamR
    AdamR Registered Posts: 668
    The 10,000 has already been credited to the Bank account:
    "£10,000 was paid from the bank account. The amount was credited to the bank account and debited to the vehicles at cost account."

    If you split the journal of £13,500 debit to vehicles at cost in the answers, you see that the £10k just debits and credits the same account, with the £3,500 part-exchange allowance making up the difference.

    Hope this helps.
  • jkc
    jkc Registered Posts: 166 ? ? ?
    help

    still struggling
    why do you need to credit assets with 10000.
    there was a debit bal of 22000
    then you put the new asset purchase of 13500 on the debit side this was.
    10000 from the bank and 3500 P ex
    on the other side you take out 12000 for disposal so I got a bal c/d of 23500.
    I feel thick help.
  • any2002uk
    any2002uk Registered Posts: 88 ? ? ?
    i still must put £10,000 in cost account and so that is why AAT always ask to do double entry, i put £10,000 in credit of bank account so they are double entry.

    if this question will appear same in next week FRA, i should ignore the word "PAID" so that i don;t need to entry again but the answer sheet said they put £10,000 in cost then double entry on same account, i am sstill confuse.

    thanks
  • AdamR
    AdamR Registered Posts: 668
    You don't actually need to put the 10,000 credit in, but like I explained, the debit is effectively in the same account as well. Had I been doing the question I would've just posted £3,500 as a debit to Vehicle Cost; they've debited 13.5K and credited 10k. Net result = same.

    Hope this helps.:thumbup1:
  • Rachey
    Rachey Registered Posts: 589
    I also worked on this last night and did it the same as Adam just explained. I just omitted the £10,000 from both sides and got the same answer. Not sure if we'd lose any marks for it, hopefully not!
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