AAT chief did not explain how to get that figure

any2002uk

hi

please see june 2006 for FRA. Year ended of March 2006.

Task 1.1

The answer said prepayment is £4800. which i put £1200 because i thought they paid £1200 for April, May, June ("The figure £4900 for rent in bank statement included £1200 for the quarter ended 30 june 2006". so it is prepayment but i fail to find the explaining from chief examiner how and why he put £4800???????????

hope you could help me.

thanks

A-Vic

it says pre payment is 1200

Task 1.1
The prepayment in the list of balances is for rent. The figure for rent in the bank summary on
page 4 includes £1,200 for the quarter ended 30 June 2006.

its asking for rent account for march 06

so 6000 rent for year - 1200 pre payment = 4800 total rent paid for the year

Rachey

I've just checked this too and the pre-payment figure is definitely £1200.

The question asks you to 'show clearly the rent for the year ended....' so that is why the £4800 is in bold letters on the answer paper. But the pre-payment is given and clearly labelled. Also given is the bank payment for rent, and an opening balance pre-payment. From this information you need to prepare the account to find the missing figure, which is 'rent for the year ended etc etc...'

any2002uk

thank for your reply

£6000 from bank
so deduct it £1200 (prepayment)

£4800 for one financial year while £1200 go to the next financial year?

ema192

i have jus done this one
dr
balance b/d 1100
bank 4900

cr
prepayment 1200
rent 4800

any2002uk

ohhhhhhhhhhhhhhhhhhhhhhh
many thanks
now i understood

debit = 1100+4900 - credit 1200= 4800 close balance is that right? i hope

ema192

yep thats it wats left is the balance of rent for the year! 4800

no worries were all in this together!!