Exam question- how to work it out

Hello

I keep getting this question in practice tests and I have no idea what the quickest way to work it out is! Can anyone help me?


A bacs payment for £1197 has been received from X who incorrectly state that the amount is the full settlement of their account balance at -date.

The customers account in the sales ledger is shown below.

Dr

Balance bf £980
Invoice 3431 £1752
Invoice 3478 £450
Invoice 3493 £135
Invoice 3510 £1650


Cr

Credit note 755 £159
Bank £ £821
Credit note 761 £220
Credit note 769 £120


You are to calculate the correct up to date balance of X account as shown in the sales ledger and then indicate with a tick in the table below which of the three transactions are still outstanding

Table

Balance bf
Credit note 755
Bank
Invoice 3431
Invoice 3478
Credit note 761
Invoice 3493
Credit note 769
Invoice 3510

Comments

  • N4TN4T Posts: 191AAT Student
    I cant work out the answer. I wonder if there is an error in the question. Do you have the answers?
  • jbouscjbousc Posts: 27Registered
    The answer is

    Invoice 3493
    Credit note 769
    Invoice 3510
  • N4TN4T Posts: 191AAT Student
    Something definitely wrong there. If you get total the debits and credits £4,967DR, £2,517CR leave debit balance £2450. The answer they gave of the three invoices/credit notes comes to £1,665. There is a difference of £785.

    It could be me not seeing it but i never had problems with these questions when I sat level 2.

    Can anyone else work it out?
  • jbouscjbousc Posts: 27Registered
    I agree, it doesn't even add up with the answer they give!

    Assuming this question is incorrect, whats your usual method for working this question out N4T?

    Add up dr, minus cr, find difference between paid amount and amount of dr/cr and see which invoices/credit notes fit?

    Thanks for your help!!
  • N4TN4T Posts: 191AAT Student
    The earliest inv/cn usually get paid first (but dont always make this assumption). The first payment of £821 can be easily worked out to be for bal b/f £980 and cn £159. So you can ignore those.

    I would also try to match the payment of £1197. It had a nice odd number so my thought was it should have atleast incl inv £1752 and £135 as the total helped with the "7" and since the cn are "noughts" logically it should have been straight forward.

    If you know what your payment is (given in the question) plus the o/s balance you should be looking for. Both these totals will help you figure it out.

    I dont think AAT would make this question too difficult or try to trick you. Do more exercises. I think this "impossible" question threw your confident.
  • N4TN4T Posts: 191AAT Student
    If you have another question i can go through my thinking process and logic.
  • jbouscjbousc Posts: 27Registered
    Hi N4T

    This is another question from my workbook:

    £2758.10 recieved

    Dr

    Balance bf £2245.60
    Invoice 2436 £250
    Invoice 2476 £1280
    Invoice 2501 £595
    Invoice 2534 £55

    Cr

    Credit note 241 £120
    Bank £750
    Credit note 251 £156.50
    Credit note 26 £98
  • N4TN4T Posts: 191AAT Student
    May I ask which publisher is your workbook from?

    I am stumped by this question too. I am guessing it's inv £595, £55 and cn£98 still outstanding. But there is a diff of £9. I only did my L2 a year ago so under AQ2013. I don't remember the answers to be this unclear.

    If the invoices are part paid then this makes everything very difficult and open to interpretation.
  • N4TN4T Posts: 191AAT Student
    Haha I am blaming your workbook because I can't do the question. I will dig out my old books and have a look at a similar question (Osborne). I honestly don't recall it being difficult. I am doing L4 now and its easier than your two questions :)
  • jbouscjbousc Posts: 27Registered
    Its Osborne too!

    The answers are

    Invoice 2501
    Invoice 2534
    Credit note 26

    So you are right

    Ive found a few mistakes in this book actually. Thanks so mch for your help!
  • N4TN4T Posts: 191AAT Student
    Oh no that's not good. I went through my books and couldn't see any similar questions in the tutorial nor workbook. Is this Bookkeeping Transactions? It was called Bookkeeping 1 when I did mine, I also looked at the unit that followed but not there either.

    Just to let you know how I tried to solve question with the little info given, I had to make some assumptions.
    1) receipt of £750, not obvious what it is paying so assumed that it deducted cn £120, paid off inv £250 and part paid inv £1280 leaving bal of £660. (Simply for me just because it's tidier than paying part of £2245.60....)

    2) I made assumption that bal b/f £2245.60 was in dispute as subsequent cn £156.50 was for that....leaving bal of £2089.10. Hence receipt £2758.10 was for cn £156.50, b/f £2245.60 and remaining £660 from third inv. There is a difference of £9?!

    3) Therefore cn £98, inv £595, £55 if we are looking for whole invoices. This was the closest match. £543 o/s but these three comes to £552!

    I don't think the actual AAT exam would expect you to make so many assumptions, otherwise any combinations are possible.

    Good luck with this as the workbook seems to be not helping very much.
    jbousc
  • jbouscjbousc Posts: 27Registered
    Yes, this is bookkeeping transactions. I hope they've made mistakes in the book and that its easier in the exam. I did a practice exam on the aat website which I used your way of working it out and it worked perfectly.
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