FRA exam today

missy

COS = opening stock + purchases - purchase returns - closing stock

you dont add the closing stock you take it away, so the lower the cost of sales, the higher ur gross profit will be. Gross profit = sales less cost of sales (lower the cos the higher ur gross profit will be) i dont know but i got 155 for the re-valuation of stock for the pies question.

x

Graeme

chunk1985 wrote: »

Im sure i got 80990 (or something similar for my section 1 balance. All my class mates got that figure aswell ? got th 27153 for the profit and 10213 for my net assets. Im pretty confident ive passed, i thought that pies thing at the end was abit of a joke it was like primary school maths if you ask me. I wasnt in class for the stock costing lesson and i still managed to do it. Im just not looking forward to my June unit 6 exam or my simulation next week. Anyone done there simulation for unit 5 yet ?

CHUNK

I am pretty sure that i arrived at the same balancing figure as you and your team mates regarding Q1 ie 80,990, this was confirmed by one of my class, however another student arrived at the figure that accounts boy posted ie 81,610, can anybody confirm the correct balance and why there appears to be two popular answers

roy ramphul

Yes with a Bad debts Adjustment of 620, the Sales Ledger Control Balance Decreases by 620. Therefore the Sales Ledger Control Balance will appear in the Extended Trial Balance as DR 5680. The Totals on the Trial Balance on Dr and CR will be 80,990.

However, before the Bad debts adjustment the Balance of the Sales Ledger Control was 6300. Therefore taking the 620 Bad debts Adjustment into consideration, the Sales Ledger Control Balance will appear in the Extended Trial Balance as DR 6300 Cr 620
Leaving the Total Side on the Trial Balance on DR and CR as 81,610

irehs

so which one is right?

roy ramphul

I believe Both Answers are acceptable. In the AAT solutions, their normally show the Sales Ledger Control 6300 Dr and 620 Cr. This would leave the total trial balance as 81,610.

irehs

thank you