FRA Mr Blobby

beavis182

Has anyone completed a skills test for this. My Profit and loss & Balance sheet doesnt balance but the inital Trial Balance and Adjustments do.

I need to check the totals really to see where im going wrong...

fireitup

Hi, I haven't long completed this, I had an adjustments total £25,592

An error I made in this was the treatment of carriage so watch out for that.

blobbyh

Blimey, saw the thread title and thought it was for me!

beavis182

ahh i have an adjustment total of £26314. Im sure my error is on the equipment depreciation. Do you know what you got as a Profit on the Profit and loss sheet?

fireitup

blobbyh wrote: »

Blimey, saw the thread title and thought it was for me!

Stay with it blobby your services might still be needed.

The depreciation figure is £8700 in the P&L.

beavis182

and the accumulated figure on the balance sheet CR is £27700?

Ive made a profit amount of £11624? am i still on the right track here? :-)

fireitup

Ok, the profit is £5,888

beavis182

grrrr, why am i having so much trouble with this. I make the profit £10180?

Richard

beavis182 wrote: »

grrrr, why am i having so much trouble with this. I make the profit £10180?

What are you getting as your gross profit?

beavis182

gross profit on the P and Loss actual sheet is £56630. If net profit is supposed to be 5888 it means i am 4292 down on the credit side?

Richard

beavis182 wrote: »

gross profit on the P and Loss actual sheet is £56630. If net profit is supposed to be 5888 it means i am 4292 down on the credit side?

Gross profit should be £55,141. Have you adjusted your purchases correctly for the carriage adjustment?

beavis182

it i put £5888 DR on the balance sheet the totals equal, i just cant see where im going wrong on the P & L as am coming up with a Net Profit of £10180 short on the CR side.

My P & L looks like

Credits Sales £138078
Carriage £2211
Closing stock £13551

Debits Purchases £823350
Carriage £2933
Rent £5952
Postage £3001
Advertising £1330
Wages £26420
Bad debt £877
Provision £170
Stock £11927
Depreciation £8700

Any obviously mistakes?? lol

Richard

beavis182 wrote: »

it i put £5888 DR on the balance sheet the totals equal, i just cant see where im going wrong on the P & L as am coming up with a Net Profit of £10180 short on the CR side.

My P & L looks like

Credits Sales £138078
Carriage £2211
Closing stock £13551

Debits Purchases £823350
Carriage £2933
Rent £5952
Postage £3001
Advertising £1330
Wages £26420
Bad debt £877
Provision £170
Stock £11927
Depreciation £8700

Any obviously mistakes?? lol

The carriage of 2211 needs to be added onto the purchases figure on the debit side and not on the credit side. You also need a 40 debit for provision for debt adjustment. Everything else looks correct.

EDIT: Just noticed you have put a £170 provision - this should not be there.

beavis182

perfect, thanks for all your help there.

Am a little confused as thought Carriage out would have been added to the sales as a credit as carriage in was already on the credit side.... something to remember for future reference i guess.

Thanks again, much appreciated :thumbup1:

Richard

beavis182 wrote: »

perfect, thanks for all your help there.

Am a little confused as thought Carriage out would have been added to the sales as a credit as carriage in was already on the credit side.... something to remember for future reference i guess.

Thanks again, much appreciated :thumbup1:

You're welcome.

Carriage in and out are both debits as the business would have to pay for both - ie if you buy something online you have to pay postage & packing charges, if you were to re-sell that item, you would have to pay postage again to forward the item. Hope that makes sense!

beavis182

it does now! lol. sorry for being stupid and not seeing if b4! glad this forum is here with helpful people like yourself