Accrued income

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.

Comments

  • cd159632478cd159632478 Posts: 3Registered
    edited January 2016
    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
  • rakeshsuwalrakeshsuwal LondonPosts: 79Registered
    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.
  • JoshJ1992JoshJ1992 Posts: 75Registered
    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?
  • rakeshsuwalrakeshsuwal LondonPosts: 79Registered
    edited February 2016
    Not an easy way but may have to type all in as the question ;p
  • JoshJ1992JoshJ1992 Posts: 75Registered
    Ok - I'll try and do that in future
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