Home For AAT student members AQ 2013 AAT Level 2 (Level 5 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Bookkeeping transaction

Hi. I have a problem with my homework. Can anyone help me, please?

Comments

  • JoshJ1992JoshJ1992 Registered Posts: 75
    Hi agnieszkag,

    Please can you let me have the details of the question which you are stuck on and I will see if I can help.
  • agnieszkag5agnieszkag5 Registered Posts: 3
    I need to place the following ledger accounts under the correct heading?
    sales, motor vehicle, wages, capital, customer (receivable), purchases, drawings, cash, sales return, purchases returns, bank(overdrawn) , supplier (payable) , fixtures and fittings, stationery

    And I have ALICE table.
    I placed:
    Assets: sales,customer receivable), motor van, cash and stationery.
    Liabilities: supplier (payable), bank(overdrawn), purchases return
    Income: sale returns
    Capital: capital
    Expenses: purchases, wages , drawings, fixtures & fittings.
    Could anyone help me?
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Stationery is an expense, same as wages and purchases. Although I can see why you might think it is an asset (especially if you have a store-room full of the stuff), in 99% of cases it's useful life is less than a year and it should therefore be recognised as an expense.

    Purchases returns should go under expenses - they go against purchases (if you have bought 10 items then returned 2, you only want to show the cost of 8 as an expense).

    Drawings go under capital - they are the owner taking money out of the business rather than a business expense.

    Fixtures and fittings are an asset - like a motor vehicle, they have a useful economic life greater than a year.

    agnieszkag5
  • agnieszkag5agnieszkag5 Registered Posts: 3
    Thank you :)
Sign In or Register to comment.