sorry ap1 help needed again :-(

Options
jojo1979
jojo1979 Registered Posts: 75 Regular contributor ⭐
in AAT Level 3 (Level 6 in Scotland)
Hi all

I have just been doing a past paper for the old FRA to get more practice of doing ETBs and one of the questions was about putting a disposal into the ETB.

THe figures were. 2400 was paid from the bank and there was a 600 part ex allowance for the new asset.

Why does the 2400 go into the bank account in the adjustments and the 600 go into the disposal column of the adjhustments. WOuldnt the 600 go into the bank account too?

Jo

Comments

  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Options
    The £600 was 'money received' for the disposed of asset, but the money didn't go into the bank, it went to the trader to help pay for the replacement asset. So it gets credited to the disposals account to help caluclate the gain/loss on disposal. The debit will be to the new asset.

    Without knowing the other details of the Q I can't comment more. But in principle, you can only put something in the bank T account if that's what actually happened.
  • jojo1979
    jojo1979 Registered Posts: 75 Regular contributor ⭐
    Options
    THank you Monsoon makes perfect sense now.

    Jo

Categories

Privacy Policy