FSTP Sample Assessment 2 Question 1b
han_solo
Registered Posts: 1
It's most likely i'm being particularly dense but the information given at the top of the question clearly states that there is a debit balance of £7052 for Bank under the date of 31 March 20X7 which would suggest it's a carried down figure.
Looking at the model answer, this figure is placed in the credit side... anybody know why or is it an error?? Thanks!!
Looking at the model answer, this figure is placed in the credit side... anybody know why or is it an error?? Thanks!!
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Comments
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I know this is an old post but i'd like to know the answer to this question. As said above the question says the b/d is a credit and the c/d is a debit but on the model answer its put the b/c & c/d as a credit. Is this a mistake on the answers or am i missing something please?0
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The balance to carry down will always appear on the opposite side to what it actually is, as it's a balancing figure. In the next period you should put the opening balance b/d back on the correct side.
Eg.
New co - balance £0.
Income (dr) £5,000
Expenses (cr) £4,000
Using a T-account, the balancing figure (balance c/d) would be £1,000 on the cr side. However, as you can see it is clearly a dr balance (you have the cash).
When opening the next period, you switch the balance c/d back to the other side, so the balance b/d is the (correct) debit.
Is that what you're referring to?0 -
I know this is an old question but I think I might have the answer. It baffled me at first too but I think it's simply on the opposite side as the balance they gave you for each was essentially the balance b/d. If you look, they are both balances for 31st March one is for 20x6 and the other for 20x7. So the first balance is the balance b/d for the current year so goes on the credit side as stated but the second balance is the balance b/d for the next year so the balance c/d would have been on the opposite side (credit side also).
I'm not 100% sure but this is the only thing that makes sense to me.0
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