Extended trial balance adjustements

tawny75tawny75 Settling In NicelyPosts: 22Registered
I am having a blank day

Our tutor gives us old AAT exams to practise on and I am confused. On my ETB i have to adjust for an increase in Bank interest and a change in the Work in progress amount. I can't for the life of me work out what the double entry will be.

Eg

To adjust the bank interest payable I need to debit Bank Interest but what do I credit?

The Work in progress amount on the ledger is £84668.45 but the memo states it should be £72300 I know that I credit the WIP account 12368.45 but what is the double entry

it is late and I am tired and I can't see for looking!!!

Comments

  • crispycrispy Trusted Regular SouthamptonPosts: 454Registered
    Hello,

    This is what I would of done (hopefully is ok :) )

    First One Debit Bank Interest (P&L), Credit Accruals (BS)

    For the WIP I would Dr Stock (Finished Goods) (BS)£ 12,368.45, Cr WIP (BS) £ 12,368.45

    You probably had already worked this out, but if not hope I have I helped.
  • tawny75tawny75 Settling In Nicely Posts: 22Registered
    I hadn't so thank you :) It all balanced ....eventually
Sign In or Register to comment.