Cash Management Exam Result and help
stclacton
Registered Posts: 3
Hi All
So just had result for level 4 cash management and failed, first fail of the course so far and thought i did ok so really gutted! anyone else in the same boat? there was a section (written) i knew i blew but must have made a few mistakes a long the way which cost me. Anyway i remember the first question which really threw me and I wondered if anyone else saw a similar question or can advise?
so the first question is adjusting cash against profit for trade receivables, payables, depreciation etc, now i am fine with 90% of this, however question i had was not at all set out like the mocks or the book we used (which had this section covered on 1 page by the way....)
Anyway usually you have your year end figures then some text to advise various movements which need adjusting, however the exam only had two sets of data, year end figures and i think the other was "actual" figures, this threw me a little not necessarily with all the movements but just the Tax paid. i was stuck between three answers for the exam and think i must have chosen the wrong one, did any one else have this question or can help with the below? this might not be exact as the exam was so if anyone else remembers it clearer please adjust.....
So for example date said Year End £55k Actual £55km So my three ideas where
1) £55k was actually paid so this figure needs to be entered in the table accounting for adjustments,
2) we have been drawing up T accounts all year to track the payments and on the day (even now) i am doubting myself with the answer, either the £55k year end balance is the balance brought down so credit side of T account, £55k also paid liability so also a credit £55k so total £110k, this didnt feel right though
3) £55k is balance brought down so on credit side £55k actual was paid out of bank, credit bank, debit tax £55k so adjustment is zero?
i am missing something obvious i am sure, i dont seem to struggle with anything esle on thise question even the depreciation and loss/profit on asset sale which can sometimes be a mission!
any comments would be massively appreciated,
Also good luck to anyone taking the exam or waiting results or anyone else in the same boat as me and it didnt work out this time!
So just had result for level 4 cash management and failed, first fail of the course so far and thought i did ok so really gutted! anyone else in the same boat? there was a section (written) i knew i blew but must have made a few mistakes a long the way which cost me. Anyway i remember the first question which really threw me and I wondered if anyone else saw a similar question or can advise?
so the first question is adjusting cash against profit for trade receivables, payables, depreciation etc, now i am fine with 90% of this, however question i had was not at all set out like the mocks or the book we used (which had this section covered on 1 page by the way....)
Anyway usually you have your year end figures then some text to advise various movements which need adjusting, however the exam only had two sets of data, year end figures and i think the other was "actual" figures, this threw me a little not necessarily with all the movements but just the Tax paid. i was stuck between three answers for the exam and think i must have chosen the wrong one, did any one else have this question or can help with the below? this might not be exact as the exam was so if anyone else remembers it clearer please adjust.....
So for example date said Year End £55k Actual £55km So my three ideas where
1) £55k was actually paid so this figure needs to be entered in the table accounting for adjustments,
2) we have been drawing up T accounts all year to track the payments and on the day (even now) i am doubting myself with the answer, either the £55k year end balance is the balance brought down so credit side of T account, £55k also paid liability so also a credit £55k so total £110k, this didnt feel right though
3) £55k is balance brought down so on credit side £55k actual was paid out of bank, credit bank, debit tax £55k so adjustment is zero?
i am missing something obvious i am sure, i dont seem to struggle with anything esle on thise question even the depreciation and loss/profit on asset sale which can sometimes be a mission!
any comments would be massively appreciated,
Also good luck to anyone taking the exam or waiting results or anyone else in the same boat as me and it didnt work out this time!
0
Comments
-
stclacton,
Sorry, I'm no quite sure what you're asking. Was there a tax liability brought forward of £55k, a payment in the year of £55k, and you're asking what the year-end balance on the liability account should be?0 -
Hi Cee-Jay Six thanks for replying, i am trying to recall the question as i saw it, it was completely different to layouts for mock exams, i seem to remember having just two Tac figures provided, balance at the end of the year (similar to what you would normally see on the mock exams and also an "actual" Figure, they where both the same values I think you have it from reading your comment. so yeah what would the correct liability be?0
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In this case it would be zero, as the payment in the year cancels the liability brought forward. This is the norm for small companies, who will then also have a new liability for the current year charge that has not yet been paid.
I think you might be missing a piece of the question, but the key to these questions is to remember that the payment in the current year will relate to the previous year's liability, whilst the tax charge for the current year in the P&L will relate to the current year (and usually agree to the liability carried forward, unless they has been an over/underpayment).0 -
ok i see, thanks for the help here its appreciated0
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