Accruals & prepayments
kellylpool
Registered Posts: 8 New contributor 🐸
Is absolutely livid, I was supposed to be sitting CBE FRA today 1 month ahead of schedule. I was 30 mins into the exam and it crashed! Apparently, the server crashed. Exam did come back on with same amount of time left but the answers I had already filled in had disappeared! Exam was aborted, much to my disappointment.
Anyway, a question came up which threw me a little and I would like some guidance as to whether or not the way I answered it was correct.
Q. Y/end 31st March. Accrual for administration expenses £300, figure past through the bank £2200 including £300 for quarter ended 30th April
A.
DR
Bank 2500
Cr
Balance b/d 300
Admin expenses for year 2100
Balance c/d 100
Is this correct? I have only ever practiced with accruals or prepayments separately, I've never actually done a T account which dealt with both.
Kelly
Anyway, a question came up which threw me a little and I would like some guidance as to whether or not the way I answered it was correct.
Q. Y/end 31st March. Accrual for administration expenses £300, figure past through the bank £2200 including £300 for quarter ended 30th April
A.
DR
Bank 2500
Cr
Balance b/d 300
Admin expenses for year 2100
Balance c/d 100
Is this correct? I have only ever practiced with accruals or prepayments separately, I've never actually done a T account which dealt with both.
Kelly
0
Comments
-
Almost right
DR
Bank 2200............................................payment made through the bank
Cr
Balance b/d 300 ...................................Accruals balance b/f
Admin expenses for year 1800 .................to P&L a/c
Balance c/d 100.....................................Pre-paid carried forward
if you want an interactive excercises on this pm me your e-mail0 -
Thanks for the reply
Your answer is what I actually meant to type. Why I typed payment through bank 2200 then done, dr bank 2200, i got muddled.
There were 2 questions on the exam, 1 starting with an accrual and a prepayment and vice versa. Both t accounts I done ended up with balance b/d and balance c/d on the same size so I suspect I'm on the right track.
Its just that having only dealt with a sole accrual or a sole prepayment, and not both together, it threw me.
Kelly0 -
the server crashing is my biggest fear when doing CBE's!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership