FRA June 2010 Answers

sdvsdv Experienced MentorPosts: 585Registered
Here is my suggested answers for FRA June 2010 paper.

It may have errors on it but and I am sure you will contribute to correct the errors.

I appologise in advance for any such errors.

I will be the first one to admit that I am not perfect, but I enjoy learning from my mistakes. I am also grateful to anyone who may point out my errors.

I look forward to reading your posts

Comments

  • snowmaraudersnowmarauder Feels At Home Posts: 99Registered
    I have looked at your paper, and I got all the same answers as you in the actual exam except for 1.7 D RTFQ i put yes, because of reflecting the market value one, must have been on a role then, dont ask me how i remember, but my college buddies, now call me the elephant. I really enjoyed the paper, but I thought they would have put the accounting concepts in, we all revised those and even remembered the what was it, oh the 5 vat one, see its gone again xx
  • taylor30taylor30 New Member Posts: 5Registered
    Suggestion Answers

    Thanks for putting this on, now I can see where I went wrong!!! For closing stock I didn't add on the £1000 sale value thinking that the value would be lowest of NRV and cost. Now I re-read the question I realise that I should have!!! The other error I made was to give the retiring partner interest on capital for the second period (what was I thinking!!)

    Don't think I've done too bad other than that though. Cheers.
  • anniebabeanniebabe Experienced Mentor Posts: 595Registered
    God! i feel well and truely sick looking at that - i am sure i botched up on a few things - can feel a resit coming on - feel like a right dunce. :(
  • jenny3549jenny3549 Trusted Regular Posts: 472Registered
    I agree with most of your answers - those I can remember anyway but just a few I had different ones to:

    1.7 d) I had the third answer as correct. Depreciation method CAN be changed as long as there is a justifiable reason for it, it's not set in stone. The question mentioned that she was concerned that the NBV didn't reflect the market value of the asset so I think the correct answer to this one is the third - that this is not the point of depreciation.

    2.5 - only slightly different. You said that the balances shown on Jack's capital and current account should be transferred to his loan account. You are making the assumption that the business cannot afford to pay him immediately. My answer was that the current account balance would be transferred to his capital account and then the overall balance either paid to him or transferred to loan depending on the financial position at the time.

    These are the only difference that I could see. Mine might not be correct after all - we don't know til the answers come out!

    Well done for redoing the paper! It was nice to go through and recognise the answers as I couldn't remember what I had put for a lot of it before then.

    Thanks.
  • anniebabeanniebabe Experienced Mentor Posts: 595Registered
    Hi Jenny

    RE 2.5
    I put that the amount would be paid as a wage - or agreed as a loan, depending on the finances of the business at the time.
    Hope this was ok, feeling really upset about this exam today - wish id never looked at the forum.
  • jenny3549jenny3549 Trusted Regular Posts: 472Registered
    anniebabe wrote: »
    Hi Jenny

    RE 2.5
    I put that the amount would be paid as a wage - or agreed as a loan, depending on the finances of the business at the time.
    Hope this was ok, feeling really upset about this exam today - wish id never looked at the forum.

    Annie,

    Don't feel upset! Don't forget, what you see on the forums at the moment are just our ideas of what was right - none of us will know til the official answers come out. Also, and most importantly, you don't need to get everything right to pass!

    I read all the assessors reports for the previous exams and judging by those there were plenty of answers that lots of people got wrong but with a pass rate of around 80% (ie the number of people who passed, not the mark needed) it looks as though you can get a good few things wrong and still pass - that's just my reading of it though!

    I know when I did past papers for practice I'd beat myself up if I got something wrong but, at the end of the day, as long as you pass overall it doesn't matter if there are a few mistakes along the way.

    Try to relax - I'm sure you're going to be fine!

    Jenny
  • SandyHoodSandyHood Font Of All Knowledge Posts: 2,034Registered, Moderator
    Jenny's point is good, but I'd add that the big advantage of sdv's answer is precisely that he is not the examiner.
    This answer only uses the questions.
    Occassionally examiners have other things in their heads, which they have not communicated in the question. On those occassions you might look at the answer and think, "how could I have done that?"
    So I think all credit to sdv.
    Sandy
    [email protected]
    www.sandyhood.com
  • jenny3549jenny3549 Trusted Regular Posts: 472Registered
    SandyHood wrote: »
    Jenny's point is good, but I'd add that the big advantage of sdv's answer is precisely that he is not the examiner.
    This answer only uses the questions.
    Occassionally examiners have other things in their heads, which they have not communicated in the question. On those occassions you might look at the answer and think, "how could I have done that?"
    So I think all credit to sdv.

    I completely agree Sandy. SDV has done a great job in doing this for us. I'm sure he will put a lot of minds at rest. And I have noticed in past papers answers that don't necessarily seem to answer the question as I read it so it's good to know that it's not just me being a bit dim!!

    I'm so glad I discovered this forum!
  • rehanarehana Feels At Home Posts: 61Registered
    Many thanks SDV , for taking the time to do the paper.Bit more relaxed now and will wait and see when the model answers are up.

    Jenny 3549 , I put the same as you for 1.7 and 2.5
  • MonsoonMonsoon Font Of All Knowledge Posts: 4,071FMAAT, AAT Licensed Accountant
    Is it me or was 2.1 (e) badly worded?

    One of our bookkeepers has just taken her Intermediate exams and the other day in the office asked me what my answer would have been (!) :lol:

    I gave the same as in sdv's answers, but I don't think the question was clear enough. It didn't state what value the computerised stock system used. The assumption was those items were in at 2750, but it wasn't clear.

    Our bookkeeper said her whole class were muttering about that question!

    It makes me cross when questions aren't worded properly, exams are hard enough for people as it is!
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