AP1 & 2 - practice papers - HELP!

kazcraw

I have my AP1 & AP2 exams in a couple of weeks and am really not confident and panicking. Wondered if someone could help me with a couple of questions.....

I have to list and total the balances on the P/L accounts and compare it to the PLCA and establish any difference between the two, if there are any errors that need adjusting make the appropriate entries in the main ledger accounts. The P/L a/c is £23607.55 and the PLCA is £23711.07 giving a difference of £103.52. On the Purchases Day book there is an amount of VAT which has not been included in the gross amount. The VAT amount is £1071.04 The Cash book shows payments of £33661.15

I don't know where to start on this......

I have a similar question on the Sales Ledger - list and total balances and compare to the balance on the SLCA. There is a difference of £3600 which seems to be Bank Payments. Bank Payments on the SLCA show £32254.37 and on the Sales Ledger Accounts £28654.37

I have no idea how to correct it, and I can't go on to do the trial balance until I have solved these two questions.

If anyone can help I would be very grateful. :crying:

Thanks Karen

katie2008

Hi Karen,

Can you specify what paper you are using to get the figures from. Is it one on the aat practice site? I can have a look at where the figures come from, and see if I can offer advice then.

Thanks, katie.

kazcraw

Hi Katie
It's a Simulation paper we have been given.

The question is:

List and total the balances on the P/L accounts at 30 June 06. I have done that and the balances are:

ABC Office Supplies £4197.39
Hobson Ltd £9282.04
Impact Fashions £8817.22
Windrush Knitwear £1310.90

Total £23607.55

Compare this total with the balances on the P/L control a/c at 30 June 06. Establish reasons for any difference between the two. If any errors need adjusting, make appropriate entries in the main ledger accounts.

The balance for the P/L Control a/c is £23711.07

The P/L Control Account reads as follows:

Bank 22,058.34 Balance b/d 23453.85
Purchase day book 21,728.28
Discount received 587.28

The Purchases account reads as follows:

Balance b/d 195988.23 Balance to P&L 213202.49
Purchase day book 17,214.26

The purchases day book reads as follows:

Admin Purchases VAT Gross
Impact Fashions 4276.06 748.31 5024.37
Hobson Ltd 6120.26 1071.04 6120.26
Windrush Knitwear 1115.66 195.24 1310.90
Impact Fashions 3174.78 555.59 3730.37
ABC Office Supplies 2189.42 383.15 2572.57
Hobson Ltd 2527.50 442.31 2969.81

TOTALS 2189.42 17214.26 3395.64 21728.28

The VAT for Hobson has been omitted

I make the difference £1071.04 which is the VAT but I'm not sure this is all there is too it.

Many thanks.

I have a similar one with the sales ledger account & s/l control too which is a bit more complicated..

Sorry for my rant yesterday, I'm getting a tad stressed out by this.

katie2008

Sorry just got the reply,

I will print the info off, have a look and see where the difference is.. (chances are its a simple thing staring us straight in the face

Will let you know when I know, might be about 8pm tonight though depends on how busy work is this afternoon.

Keep calm and carry on!!!

katie2008

kazcraw wrote: »

Hi Katie

The VAT for Hobson has been omitted

I make the difference £1071.04 which is the VAT but I'm not sure this is all there is too it.

There is more to it. There is the 103.52 which I am yet to find,

once found that should then balance.

Will give you a shout when I can see it! (just know its something simple lol)

MarkT

Hi Kaz,

Just a minor observation here and I'll have a wee look over the figures later... Have you been introduced to the suspense account function yet? This may be where you need to put the initial amount so as to even things up.

I had a similar situation early on in my AP1 and the suspense account was the key to solving the scenario.

kazcraw

Hi Katie

Thank you very much for this. I made the difference £103.52 but am unable to find it at the moment - have been looking at this question and the similar one I have with the Sales Ledger and can't seem to move on.

The VAT omitted too I have noted but not done anything with as yet.

Look forward to hearing from you later

villapb

hi kaz sent you an eamil, i think i have sussed out te sl question.

kazcraw

Hi Peter

I've just emailed you back too with an apology

Richard

Hi Karen, I read your post last night and admit that I was one of the 39 people you referred to. I, like many of the regulars on here, am AAT qualified but still like to help and support students whenever possible. I did respond to a number of posts over the weekend, and would've done to yours if the post had been clearer. I'm not here to criticise you but perhaps in future you could post more detail (like your later post on here), or just provide a reference, ie the page number and name of a text book you are using. If a student recognises it as a question they've done in the past, you may get a better response.

It looks as if other people have sorted you out this time, but if I can be of any help in the future I will respond.

Good luck with your studies and stick with this forum.

katie2008

I think its something to do with the bank payments, but cant explain where..

Running a bit behind schedule tonight sorry Karen, (spent longer with midwife than anticipated).

Will keep you posted. Apologies for the delay

Katie

kazcraw

Thanks Richard, yes I understand, but was reluctant to put it all on here as it was quite long - I have a simulation paper and there is a lot of detail in the question I am stuck on.

I have had a few responses and for that I am grateful, but to be honest those responses haven't really managed to get me any further forward than when I posted the first time.

I'm still trying but obviously don't want to go to my next class and not been able to complete the paper.

Diddy Mau

kazcraw wrote: »

I'm still trying but obviously don't want to go to my next class and not been able to complete the paper.

Hello,
I would go in and explain to them that you just dont get it. I do it when I get stuck. And you wont be the only one. Or someone will be able to expalin in your class, then another subject you will get straight away, and others will stuggle. It happens all the time

Keep going

kazcraw

Thanks Katie (and for your patience!!). I have been on it all day today and my head is mush!!!

I have even written everything out, i.e. purchase day book, then manually written out the subsidiary accounts, purchase ledger a/c and plca but still am unable to find anything.

Still onwards and upwards - I'll keep trying

janwal

Hi Karen

I have looked at this several times and still can't make a lot of sense. This maybe a silly question but have you drawn up the accounts as the would be, like the day book etc.

Jan

villapb

cirkey Karen you worry too much, the cba is the important bit, homework is learning, get the college to do thier job and go through it with you............you really are worrying over nothing. God help you when a sole trader is having a go at you ...............lol

Richard

I'm just having a look at this for you - where is the Purchase Ledger Control account figure of £23,711.07 coming from?

Is this a figure you have calculated yourself? Because I'm calculating that the balance should be £22,536.51, which brings you back to the VAT difference of £1,071.04

It looks to me as if the discounts received have been treated as a credit instead of a debit.

katie2008

Ref purchases:

There isnt a purchase payment on account anywhere is there? I have drawn up the t accounts, and the bank is the only one I cant get to fully reconcile..

I am thinking along the lines of a proforma basis payment...

Its ok, I try to help. Most of us try to help.

ps: has anyone seen glynis lately?

crispy

Hello,

The difference is due to the discount received figure being transposed, and the vat figure being omitted. Eg.

PLCA Per Accounts 23,711.07
Disc. Rec'd Transposed (1,174.56)
VAT Omitted 1,071.04
Balance Per P/L 23,607.55

Journals To Correct:
Dr PLCA £ 1,174.56
Cr Discount Received £ 1,174.56
Being Correction of Transposition Error

Dr VAT £ 1,074.04
Cr PLCA £ 1,074.04
Being Omission of VAT

Hope this is ok

katie2008

Richard wrote: »

It looks to me as if the discounts received have been treated as a credit instead of a debit.

That would account for the difference surely along with the vat....

Could be onto something here..

Richard

Yeah, but it looks as if Crispy has beaten us to it!!

PS Not seen Glynis recently either.

katie2008

Ah my slow internet connection. (3-connect is being stupidly slow tonight)

Well Done Crispy

villapb

well done cripsy......................kaz will be top of class for homework.............and have eaten humble pie to for the aat guys.

katie2008

villapb wrote: »

well done cripsy......................kaz will be top of class for homework.............and have eaten humble pie to for the aat guys.

And girls!!

villapb

sorry katie i call everyone guys ...............

katie2008

villapb wrote: »

sorry katie i call everyone guys ...............

Its ok. I've been around too long, I know what you meant.

kazcraw

Hi Jan

I'm glad it's not just me lol. I attempted to write up the accounts today, but didn't get to the end, so will start afresh again tomorrow.

Thanks

kazcraw

Thanks to you all for all the help - I will start again with a clear head and hopefully be able to move on.

Villapb - yes I do worry too much and tend to read far too much into each question!!!

Humble pie - well and truly eaten and won't go off on one again - wasn't personal to anyone

kazcraw

Thanks crispy

I have sent you a PM.