AP1 Question
Neney
Registered Posts: 8 Regular contributor ⭐
Hi everyone, I have my AP1 exam today but I am stuck on this particular question. I would be grateful if anyone could help with this question and explain how the get the answer. Thanking you in advance.
Section 2 – Extending the trial balance using accounting adjustments
Task 2.1
This task is about accounting for accruals and prepayments and preparing a trial balance.
You are working on the final accounts of a business for the year ended 31 March 20X1. In this task, you can ignore VAT.
You have the following information:
Balances as at: 1 April 20X0
£
Accrual for administration expenses 790
Prepayment for selling expenses 375
The bank summary for the year shows payments for administration expenses of £6190. Included in this figure is £1800 for the quarter ended 31 May 20X1.
(a) Prepare the administration expenses account for the year ended 31 March 20X1 and close it off by showing the transfer to the profit and loss account
Administration expenses
£ £
The bank summary for the year shows payments for selling expenses of £7900. In April 20X1, £825 was paid for selling expenses incurred in March 20X1.
(b) Prepare the selling expenses account for the year ended 31 March 20X1 and close it off by showing the transfer to the profit and loss account. Include dates.
Selling expenses
£ £
Section 2 – Extending the trial balance using accounting adjustments
Task 2.1
This task is about accounting for accruals and prepayments and preparing a trial balance.
You are working on the final accounts of a business for the year ended 31 March 20X1. In this task, you can ignore VAT.
You have the following information:
Balances as at: 1 April 20X0
£
Accrual for administration expenses 790
Prepayment for selling expenses 375
The bank summary for the year shows payments for administration expenses of £6190. Included in this figure is £1800 for the quarter ended 31 May 20X1.
(a) Prepare the administration expenses account for the year ended 31 March 20X1 and close it off by showing the transfer to the profit and loss account
Administration expenses
£ £
The bank summary for the year shows payments for selling expenses of £7900. In April 20X1, £825 was paid for selling expenses incurred in March 20X1.
(b) Prepare the selling expenses account for the year ended 31 March 20X1 and close it off by showing the transfer to the profit and loss account. Include dates.
Selling expenses
£ £
0
Comments
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Accruals and prepaymentsHi everyone, I have my AP1 exam today but I am stuck on this particular question. I would be grateful if anyone could help with this question and explain how the get the answer. Thanking you in advance.
Section 2 – Extending the trial balance using accounting adjustments
Task 2.1
This task is about accounting for accruals and prepayments and preparing a trial balance.
You are working on the final accounts of a business for the year ended 31 March 20X1. In this task, you can ignore VAT.
You have the following information:
Balances as at: 1 April 20X0
£
Accrual for administration expenses 790
Prepayment for selling expenses 375
The bank summary for the year shows payments for administration expenses of £6190. Included in this figure is £1800 for the quarter ended 31 May 20X1.
(a) Prepare the administration expenses account for the year ended 31 March 20X1 and close it off by showing the transfer to the profit and loss account
£1800 for a quarter = £ 600 for each month for March,April, May = Prepayments for Month of April / may
Administration expenses
...............................................................£.............£
Bal b/f (Accruals from last year)......................................790
Bank payments.............................................6190
bal c/d (Prepayment this year).......................................1200
Profit & Loss..................................................................4200
total............................................................6190.........6190
bal b/d........................................................1200
The bank summary for the year shows payments for selling expenses of £7900. In April 20X1, £825 was paid for selling expenses incurred in March 20X1.
(b) Prepare the selling expenses account for the year ended 31 March 20X1 and close it off by showing the transfer to the profit and loss account. Include dates.
Selling expenses
...............................................................................£........................£
Balance b/d prepayment..................................................... 375
bank payment ..................................................................7900
Bal c/d (Accruals)................................................................825
Profit & loss..................................................................................................9100
Total................................................................................9100.....................9100
bal b/d...........................................................................................................825
......0 -
As a quick answer, you'll have your balances in the trial balance, then the accruals and prepayments will be in the adjustments colum. If it's an accrual, you still owe it, so it will increase the balance on the account in the P&L, if it's a prepayment, you will be reducing the balance in the P&L (for expenses anyway).
Hope this helps, as I say, it's just a quick answer!0 -
Did you pass?...
Did you think it was easy/hard anything like any of the mocks you did?
lol sorry for all the questions I have mine very soon!0 -
Did you pass?...
Did you think it was easy/hard anything like any of the mocks you did?
lol sorry for all the questions I have mine very soon!
I just sat my AP1 this morning and to a certain degree, found that the mock CBA on this site mirrored the exam.
The trick is to take your time and read the questions. They threw a few items in adjustments that were misleading and had no effect on the cash book
0 -
Mark,
Could you do me a huge favour and point me in the direction of the ap1 mock exam on here :-/0 -
Hi Clarekaye
this soudl take you there
https://www.aat.org.uk/myaat/pa_lsb/
under My AAT, computer based assesments, practice assesments0 -
The thing keeps crashing, not going onto next or going back argh why did I not know these existed till 2 days before my exam :-(
Is an accrued expense a credit on the P&L?0
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