Accrued income

JoshJ1992

Hi everyone,

This question has probably been asked before but I am currently working on sample assessment 1 for the ACPR unit on the AAT website.

On task 1.3, there is a question where you are required to work out the balance on the commission received account at a particular period of time. Is anyone able to tell me how this is worked out. I have tried to work backwards from looking at the answer but still do not seem to get to the correct figure.

cd159632478

Commission receivable at beginning of year £2,400. This is a debit balance as it is a accrual for commission as at the end of the year on 31 March 20X6.

Cashbook shows receipts of £29,150 a credit balance

The adjustment of £1,800 is a credit balance as it is work done in current year but paid in the next year. So we put an accrual for £1,800 as we need to include it in the current account.

So 29,150+1,800-2,400= £28,550 Which is the correct answer as per model answers

rakeshsuwal

If you could post the question here as well it might help more. I personally like to see them here so I can work them out in my mobile without having to find the question in different website.

JoshJ1992

Hi cd159632478,

thanks for this, that is really useful. I have had a look at the question again after reading your post and it does seem to make a lot more sense.

Hi rakeshsuwal,

Thank you. Yes, I tried to do this but the sample assessments do not seem to let me copy and paste and I can't see an option on the tool bar above to attach a screen print (although I am probably missing something!). Do you know if there is an easy way I can do this without typing the whole question?

rakeshsuwal

Not an easy way but may have to type all in as the question ;p

JoshJ1992

Ok - I'll try and do that in future