Ap1

sscors
sscors Feels At HomeRegistered Posts: 72
Hi

is it me or is depreciation/prepayments/accruals the hardest part of AP1 it's really doing my head in and the exam is next week!!!!!!
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Comments

  • Jo Clark
    Jo Clark Font Of All Knowledge Registered Posts: 2,525
    Hello

    What part of depreciation/prepayments/accruals do you find the hardest? Is it the posting in T A/cs, how to calculate them or something else? Do you need any help on a particular question you are trying to complete for study/revision purposes?


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • sscors
    sscors Feels At Home Registered Posts: 72
    Hi

    thanks so much for reply, its the posting in t accounts I just can't get my head around it have been trying to fathom it all day!
  • Mollypod88
    Mollypod88 Well-Known Registered Posts: 155
    Hi,

    I am finding that chapter really hard as well. I'm struggling with T accounts as well! :(
  • Kirsty83
    Kirsty83 Feels At Home Registered Posts: 57
    Happy to know that I'm not the only one who was struggling with this. I failed my AP1 and am due to re-sit on Wednesday. After recieving my feedback, it was these areas in particular that I failed on.

    It does take a little while longer to get your head around these. Just remember that there is ALWAYS 3 entries in every disposal account:

    DEBIT original cost of asset
    CREDIT accumulated depreciation
    CREDIT sale price of asset (price you sold it or part exchanged it for)

    As for Prepaymets/Accruals - remember:

    AID - Accrual In DEBIT
    PIC - Prepayment In CREDIT

    The above is for income. To work out expense, it's just the opposite.

    Hope that helps a little.
  • janwal
    janwal Experienced Mentor Registered Posts: 1,189
    Hi Kirsty

    Certainly not on your own, I failed on Tuesday.

    How did you get feed back, I asked at college and was told this was not possible. Mind you I think the only thing I got right was the fixed asset register.

    Jan
  • Kirsty83
    Kirsty83 Feels At Home Registered Posts: 57
    Sorry to hear that Jan. :(

    We got our feedback from our tutor about a week afterwards. There was no problem for us recieving it. At the end of the day, you're entitled to feedback so you know what area's you were weakest on.

    When do you plan on re-sitting your AP1?

    Kirsty
  • janwal
    janwal Experienced Mentor Registered Posts: 1,189
    Hi Kirsty

    Have not got a re-sit date yet, going to wait a few weeks as have direct tax in next couple of weeks as well, decided to concentrate on one at a time.

    Jan
  • Clarekaye
    Clarekaye Trusted Regular Registered Posts: 307
    I failed mine in Dec & got my re take this thursday, I got my feedback direct from AAT, the 3 sections I 'did not meet' where:
    Accruals & prepayments and I know I got them the wrong way round
    one of the knowledge questions and i cant actually remember the other bit but I must have been soooo close to passing it.

    Maybe try different ways of remembering it, one way should suddenly click and you will have no probs
    Good luck!
  • sscors
    sscors Feels At Home Registered Posts: 72
    Doh!!!!!!!!!!!!!!

    Hello

    many thanks for your help which I'm sure is very useful unfortunately I still cannot fathom this so I decided to go back to ETB and got stuck on double entry book keeping and financial statements particularly opening and closing inventory, profit and loss for the year and capital account keep reading textbook over and over again to not much avail. If any one has any ligtbulbs of inspiration please bring some my way
  • MarkT
    MarkT Trusted Regular Registered Posts: 302
    Don't quote me on this as I am only relaying what my course tutor mentioned to our class but, the knowledge part tends to hammer a few people and as yet, we're not sure how they come to the conclusion. If the pass mark is 70% then how can they work out the answer over 2 questions? I Exceeded on all parts of my AP1 with the exception of Control account where I got an M for met and then got a D for did not meet in knowledge, kind of silly considering the rest of my result.
  • janwal
    janwal Experienced Mentor Registered Posts: 1,189
    Hi Mark

    We were talking about this at college yesterday as we got our feedback, it seems like one of the questions is worth quite a large %, (like in Indirect Tax, filing in VAT return worth 50%) but AAT won't say which, so I guess if you pass the rest but fail that one, you fail.

    Jan
  • Clarekaye
    Clarekaye Trusted Regular Registered Posts: 307
    No way this is horrible news! One of these was the ones I got wrong last time!

    Does anyone know how many 'do not meets' your allowed to have?

    My re take is tomorrow and I am not looking forward to it.
  • Kirsty83
    Kirsty83 Feels At Home Registered Posts: 57
    I re-sat my AP1 yesterday and I failed AGAIN!!!! *sniffs* I was so upset I was considering giving up, but after talking everything through with friends and family, I know I would be stupid to give up now when I'm already half way through.

    I do plan to re-sit, just waiting back from my tutor to see when the next "slot" available is. As for AP2 (scheduled for the 1st), I'm deferring that, as I have no intention of taking it until I have passed AP1 (for obvious reasons).

    We are due to sit Cost & Revenues on the 8th, so at this moment in time, I'm going to focus my attentions on that exam and start revision. If I feel confident enough to sit it on the 8th, then I will.

    Awaiting feedback from yesterday, so until I get that, I'm just putting it to one side.

    I do feel it was the damn prepayment/accrual question that let me down AND the accounting concept questions at the end of the exam. I felt reasonably confident with the rest.

    My only annoyance is the fact that the we're not graded at all. At least if we were, we would have an idea of just how far away we are from passing. Also not having a thorough enough feedback is also an additional pain in the butt!!

    It makes me feel slightly better knowing that I'm not alone with failing this damn AP1. It's not JUST me who isn't getting it!!
  • sscors
    sscors Feels At Home Registered Posts: 72
    Hey

    I'm sure you'll nail it next time, if at first you don't succeed try try again
  • janwal
    janwal Experienced Mentor Registered Posts: 1,189
    Sorry to hear that Kirsty, don't give up, it would be a waste, and your not on your own.

    I have my resit on the 13th Feb, going to revise after Indirect Tax next week.

    Have you used the Osbourne sites there are 2 tests slightly different to AAT and i find they help me understand things.

    Keep trying

    Jan
  • MarkT
    MarkT Trusted Regular Registered Posts: 302
    Hi Kirsty,

    Sorry to hear that you failed on the AP1 again. I don't know how you're prepping for the exam, but I did manage to help coach one of my class colleagues up and he re-sat before Christmas and passed. The way I did it was to get the practice CBA answers printed out and then to write down why they were placed where they were were. I found with my colleague that they were panicking and either mis-reading the question or starting off in the wrong places.

    Also, it helped me when doing mine to use the scrap paper that they give you to writing the T accounts down.

    Sorry if this sounds patronizing, again, I don't know fully your stumbling blocks, but I do hope that you confront them and beat them into submission :D
  • Clarekaye
    Clarekaye Trusted Regular Registered Posts: 307
    I failed mine again yesterday too!
    I had 3 'did not meets' so I must have been stupidly close again :-(
  • MarkT
    MarkT Trusted Regular Registered Posts: 302
    Hi Clare,

    As I said to Kirsty, it may help if you print the answers to one (or both) of the mock CBA's on the MyAAT and then go through each section to see why it is you're dropping marks.

    If you want a hand with layouts etc, give me a shout - I'll do what I can to help :)
  • Kirsty83
    Kirsty83 Feels At Home Registered Posts: 57
    Clarekaye wrote: »
    No way this is horrible news! One of these was the ones I got wrong last time!

    Does anyone know how many 'do not meets' your allowed to have?

    My re take is tomorrow and I am not looking forward to it.


    My friend got 2 "did not meets" on her feedback an still passed - so who knows!!

    I despise the AAT marking scheme!!!
  • MWAUGH1983
    MWAUGH1983 Trusted Regular Registered Posts: 420
    Kirsty83 wrote: »
    My friend got 2 "did not meets" on her feedback an still passed - so who knows!!

    I despise the AAT marking scheme!!!

    Yeah kirsty the way they mark is rediclous! having a short section 1 and 4 questions on section 2 is rediculous if you have to pass each section to pass!
  • Clarekaye
    Clarekaye Trusted Regular Registered Posts: 307
    Kirsty83 wrote: »
    My friend got 2 "did not meets" on her feedback an still passed - so who knows!!

    I despise the AAT marking scheme!!!

    Oh man that really does mean I was super super close having 3 did not meets GAAAAAAAAAAAAAAAHHHHHH
  • Kirsty83
    Kirsty83 Feels At Home Registered Posts: 57
    Thanks for all the advice guys! :)

    MarkT - your tips are really good. Currently I'm working through the chapters I failed on, doing the exercises at the end of each chapter, practice papers (including the CBA's) and the green light section of the AAT site.
    I have also gone through the practice tests on the Osbourne site (which have been helpful).

    I received my feedback and I got 3 "did not meets" - so I had improved from last time and it is still the accruals/prepayments and reconcilation that is letting me down.
    I also screwed up the 2 accounting concepts questions, so that was a fail. :(

    I won't be re-sitting my AP1 until the 22nd March and I have deferred AP2 until the 29th March (the week after). Our AP2 sitting is next week and I don't feel confident enough to take it then - also want to pass AP1 before attempting AP2.

    Right now my main focus is Cost & Revenues which I have in 2 weeks time. DREADING this exam, but doing as much as I can to pass it!!!

    I'll be sitting PEAF, AP1 & AP2 in March!!!! Eeeek! Wish me luck on all of that!!!!!
  • Mollypod88
    Mollypod88 Well-Known Registered Posts: 155
    Honestly I cannot wait until I've sat my AP1 exam - pass or fail! All I can think about is disposals and accurals and prepayments! GRRRRRR!!!!
  • Kirsty83
    Kirsty83 Feels At Home Registered Posts: 57
    Disposals I'm fine with now - just those blasted prepayments and accruals that seem to be fighting me every step of the way!!!! UGHHH!!!

    I refuse to be defeated a 3rd time!!!!!
  • MarkT
    MarkT Trusted Regular Registered Posts: 302
    Kirsty - Glad that the tips were of use to you, I've had trouble with accrual and prepayments as well and I did a bookkeeping class last year and had it hammered into me then, and I still only just got it this year....

    Someone please correct the following if I am wrong or it is misleading

    There are 4 concepts you need to follow but they are placed on the debit and credit sides similarly.

    On the adjustments column, an accrued rent expense is shown as:

    DR Rent
    CR Accrual

    Here, the accrual gets transferred over to the SFP as it is a liability and, the TB rent is increased for the IS

    For the same account, a prepayment of rent expense the exact opposite applies

    DR Prepayment
    CR Rent.... OF course!!!!

    You then transfer the prepayment to DR on the SFP as this is an asset and reduce the TB rent account accordingly.

    Here though, is where the bulk of a lot of peoples problems lie. And that is the type of account.

    I'll use the rent again, but this time it is a form of income to the business (a rented out garage for example)

    For an accrual of rental income we do the exact opposite of accrued rental expense

    DR Accrual
    CR Rental income

    And for the prepayment of rental income We do the exact opposite of prepaid rental income

    DR Rental income
    CR Pre-payment

    It is rare that you will get this kind of scenario, but this is how it is laid out. A prepayment and accrual on the SFP can be either a debit or a credit depending on the account in question

    Hope this helps :)

    Again, if anyone see's I have made a mess here, please do speak up!
  • Kirsty83
    Kirsty83 Feels At Home Registered Posts: 57
    Thanks Mark - big help!!! :)
  • Kashcow
    Kashcow Settling In Nicely Registered Posts: 19
    Hi,
    I have got my AP1 next week. I have done the mock papers and revision kit Kaplan gave, but I done the CBA on the AAT website and it is totally different. Just wanted to ask people who have recently done the exam, was it more similar to the mock or the practice CBA.
    Costs and revenues was horrible, the questions took me by surprise but I managed to pass.
    Thanks
  • KaySarah
    KaySarah Well-Known Registered Posts: 215
    MarkT wrote: »
    Kirsty - Glad that the tips were of use to you, I've had trouble with accrual and prepayments as well and I did a bookkeeping class last year and had it hammered into me then, and I still only just got it this year....

    Someone please correct the following if I am wrong or it is misleading

    There are 4 concepts you need to follow but they are placed on the debit and credit sides similarly.

    On the adjustments column, an accrued rent expense is shown as:

    DR Rent
    CR Accrual

    Here, the accrual gets transferred over to the SFP as it is a liability and, the TB rent is increased for the IS

    For the same account, a prepayment of rent expense the exact opposite applies

    DR Prepayment
    CR Accrual ......... Maybe mistyped in a hurry here Mark - maybe I am wrong? Kay.
    You then transfer the prepayment to DR on the SFP as this is an asset and reduce the TB rent account accordingly.

    Here though, is where the bulk of a lot of peoples problems lie. And that is the type of account.

    I'll use the rent again, but this time it is a form of income to the business (a rented out garage for example)

    For an accrual of rental income we do the exact opposite of accrued rental expense

    DR Accrual
    CR Rental income

    And for the prepayment of rental income We do the exact opposite of prepaid rental income

    DR Rental income
    CR Pre-payment

    It is rare that you will get this kind of scenario, but this is how it is laid out. A prepayment and accrual on the SFP can be either a debit or a credit depending on the account in question

    Hope this helps :)

    Again, if anyone see's I have made a mess here, please do speak up!

    I have inserted one line above .. where I think there might be a small error as you say Dr Prepayment & Credit Accrual .. I think it should be Dr Prepayment, Credit Rent ..Yes??
  • MarkT
    MarkT Trusted Regular Registered Posts: 302
    KaySarah wrote: »
    I have inserted one line above .. where I think there might be a small error as you say Dr Prepayment & Credit Accrual .. I think it should be Dr Prepayment, Credit Rent ..Yes??

    I knew I'd make a mistake!! Thanks for the correction :D
  • MarkT
    MarkT Trusted Regular Registered Posts: 302
    Kashcow wrote: »
    Hi,
    I have got my AP1 next week. I have done the mock papers and revision kit Kaplan gave, but I done the CBA on the AAT website and it is totally different. Just wanted to ask people who have recently done the exam, was it more similar to the mock or the practice CBA.
    Costs and revenues was horrible, the questions took me by surprise but I managed to pass.
    Thanks

    I found the AP1 exam was the very same format as the mock CBA and did as I said above and that was to print out the answers and then check at the end before I hit the finish exam to see where I went wrong. I also firmly believe that if you do this and write down why the figures are the way they are, helps you understand the subject.
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