FRA last week

keithy1978 Feels At HomeRegistered Posts: 36
Hi all,
Alot of discussion has ensued about this paper. I feel pretty good about it but could someone clear up the following:
I got my trial balance in section one to balance without the use of the suspense account, including capital but not including closing stock.

It said at the top of the trial balance that the closing stock figure is not known therefore I read that as it cant be included in the trial balance. The question immediately after the TB was asking for a calculation of the closing stock. If you are meant to include the closing stock in the Trial Balance it would have to be before the TB question. Does anyone agree?

Also where are the past exams papers located on the new AAT website?



  • AnnieN
    AnnieN New Member Registered Posts: 9
    FRA Sect 1

    Yes I agree with you. I did not include the closing stock in the TB and balanced when including the capital. I hope this is right.
  • David0097
    David0097 Settling In Nicely Registered Posts: 24
    From re-reading the question, I don't think the trial balance should include the closing stock figure. They wouldn't get you to complete and balance the trial balance, then go to the next question, complete the closings stock calculation and cross out your initial trial balances as you need to include the closing stock. Doesn't make sense. If it were to be included, the CS question would have come before the trial balance so it could be included.

    The final question on CS is just there to check you know how to calculate it (from what I can see).
  • AK002
    AK002 Font Of All Knowledge Registered Posts: 2,492
    You are right saying it shouldn't have been included.

    Closing stock would have been Dr balance sheet and Cr P&L the same amount, so the net effect of the two entries is 0 anyway.

    So the TB will balance regardless of if you put closing stock in or not. I didn't put it in, as the question with the TB clearly tells you to balance & close of the TB.
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