Unit 15 - Tricky Question Alec's Attempt'

Alec Baker

Please see attached my attempt to the my previous post named Unit 15 - Tricky Question

SandyHood

Alec
I haven't done a lot on this but I hope these two comment help:

1. I don't see the opening/closing stock information as relevant (remember the unit 15 standards do require you to recognise relevance)
2. there is a cash flow that is dependent on sales revenue (in the question it says 1% sales revenue is spent on it) - your answer is 1% of receipts from sales whereas I consider that the answer should be 1% of the value of sales

Your answer does look good and I'm sorry I've not looked at every aspect yet.

SandyHood

I have made an alternative attempt, but have added 2 questions on your original posting for clarity.

My answer agrees with yours in nearly every aspect.
My differences are:

1. Delivery cost values
2. Overdraft interest ~ I have charged the interest on the closing balance in June and recorded the payment in July etc
3. the opening overdraft balance

I'm happy to let you have a copy of my answer, but exactly what my answer is will depend on the value of the opening overdraft.