AAT chief did not explain how to get that figure

any2002uk
any2002uk Registered Posts: 88 ? ? ?
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

Comments

  • A-Vic
    A-Vic Registered Posts: 6,970
    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
    Rachey Registered Posts: 589
    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
    any2002uk Registered Posts: 88 ? ? ?
    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
    ema192 Registered Posts: 107 ? ? ?
    i have jus done this one
    dr
    balance b/d 1100
    bank 4900

    cr
    prepayment 1200
    rent 4800
  • any2002uk
    any2002uk Registered Posts: 88 ? ? ?
    ohhhhhhhhhhhhhhhhhhhhhhh
    many thanks
    now i understood

    debit = 1100+4900 - credit 1200= 4800 close balance is that right? i hope
  • ema192
    ema192 Registered Posts: 107 ? ? ?
    yep thats it wats left is the balance of rent for the year! 4800

    no worries were all in this together!!
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