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# Exam question- how to work it out

Registered Posts: 27
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

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

Invoice 3493
Credit note 769
Invoice 3510
• AAT Student Posts: 191
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?
• Registered Posts: 27
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!!
• AAT Student Posts: 191
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.
• AAT Student Posts: 191
If you have another question i can go through my thinking process and logic.
• Registered Posts: 27
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
• AAT Student Posts: 191
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.
• AAT Student Posts: 191
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
• Registered Posts: 27
Its Osborne too!

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!
• AAT Student Posts: 191
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.
• Registered Posts: 27
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.