Anyone want to try these practice problems with me?

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Comments

  • Bertie
    Bertie Registered Posts: 376
    Your question; the lower half doesn't quite ring true, unless I'm seeing things. Nisha sends a cheque for more than what is due - the questions states she sends a part payment?? Maybe it's me.

    I do have some workings for you. I'll add, they have not been run through QB, merely Excel.


  • Casu
    Casu Registered, Users Awaiting Email Confirmation Posts: 102
    Construction said:

    Casu said:

    Supply a variety reports showing everything that has gone through each income, cost, asset, liability account code etc, including the ones asked for in the question!!!!

    If I post my entries, and these reports will you check it?

    That's what I asked for on the other post weeks ago! Although I can see Bertie has posted his and beaten you to it
  • Bertie
    Bertie Registered Posts: 376
    Yes quite.

    Although the qustion says; Nisha sends a 'part' payment, Nisha's orders are circa £175k, yet sends cheque for £177k.

    So unless there is supposed to be a POA / Deferred income, my fag packet workings are wrong.
  • Casu
    Casu Registered, Users Awaiting Email Confirmation Posts: 102
    Bertie said:

    Yes quite.



    Although the qustion says; Nisha sends a 'part' payment, Nisha's orders are circa £175k, yet sends cheque for £177k.



    So unless there is supposed to be a POA / Deferred income, my fag packet workings are wrong.

    I havent looked at it, waiting for OP's workings.
  • Construction
    Construction Registered Posts: 26
    Bertie said:

    Yes quite.



    Although the qustion says; Nisha sends a 'part' payment, Nisha's orders are circa £175k, yet sends cheque for £177k.



    So unless there is supposed to be a POA / Deferred income, my fag packet workings are wrong.


    Hi Bertie,

    I have to thank you for attempting this problem, Ill help you wax your Maserati as a token of appreciation!

    Please revise the attached Trial Balance, General Ledger entries, and Income Statement

    ● I do have to admit that this a very bad question ( I do have better ones ), but I was desperate to try out questions, so I attempted it (sucks not having solutions!)

    It seems like most of our figures on the Trial Balance are correct, however I am looking at why you decided to have a deferred income of 1350? Are you sure the excess payment can be viewed as revenue? I would think its merely a credit to NIsha’s account. Thats why I have an AR on my Trial Balance of 9150.


    I attached the Trial Balance→ which QB automatically calculates for you based on your G/L entries→ If you add the Inventory account 63080 + 1350 (Overpayment Nisha) we get the same amount you have 553 080.



    Dunno who is right or wrong here.
  • Bertie
    Bertie Registered Posts: 376
    If the question is as you posted then my logic is correct.

    The extra payment she has made of - £1350 (Which I think is strange as it states she sent a part payment)

    Will be;

    Dr Bank
    Cr Deferred Income.

    Some software will Cr the SLCA, thus reducing current assets in the balance sheet.

    In future when she orders again, the £1350 will be offset against what she already has on account.

    Until she orders anything, the money (£1350) should be held as a liability because the company effectively owes her.

  • Bertie
    Bertie Registered Posts: 376
    edited May 2017
    As you can see the results are the same.

    P&L is also the same.
  • Construction
    Construction Registered Posts: 26
    Casu said:

    Bertie said:

    Yes quite.



    Although the qustion says; Nisha sends a 'part' payment, Nisha's orders are circa £175k, yet sends cheque for £177k.



    So unless there is supposed to be a POA / Deferred income, my fag packet workings are wrong.

    I havent looked at it, waiting for OP's workings.
    Well CASU I posted my workings you going to try it?
  • Casu
    Casu Registered, Users Awaiting Email Confirmation Posts: 102
    What the hell for? Told you right from the start I wasn't gonna waste my time. Too busy with real clients. Plus I already help a pile of students out on a daily basis for nada. You have your answer from Bertie, so don't push it!

    Agree on the deferred income under ias. It's where such software dumbs it down for lay people and often causes issues on refundable deposit processing.
  • Construction
    Construction Registered Posts: 26
    Bertie said:

    As you can see the results are the same.

    P&L is also the same.

    Ready for another question Bertie?
  • Bertie
    Bertie Registered Posts: 376
    No thanks. You've had your free hour.

    Any other requests will be serviced, but it will cost you £80 per hour.

    Thank you.
  • Casu
    Casu Registered, Users Awaiting Email Confirmation Posts: 102
    Bloody hell, you didn't even get a thank you did you Bertie.

    Construction-stop being a cheapskate and sign up and pay for a course.

    AAT-stop allowing freeloaders on to this site! This should be restricted to AAT paying members only.
  • Bertie
    Bertie Registered Posts: 376
    It's rare to get a thanks in this forum.
  • Construction
    Construction Registered Posts: 26
    Bertie said:

    It's rare to get a thanks in this forum.

    Bertie said:

    It's rare to get a thanks in this forum.

    Thanks a lot I appreciate it Bertie....... and wow bookkeepers in the UK make 80 an hour? wow I better move to london..
  • Casu
    Casu Registered, Users Awaiting Email Confirmation Posts: 102
    Construction said:

    Bertie said:

    It's rare to get a thanks in this forum.

    Bertie said:

    It's rare to get a thanks in this forum.

    Thanks a lot I appreciate it Bertie....... and wow bookkeepers in the UK make 80 an hour? wow I better move to london..
    You clearly do NOT appreciate it a lot, you only said it after I reminded you to do so! Next time - say it straight awaty when someone has helped you.

    Bertie - I am appalled at the lack of manners on this and several other forums. Folk get one chance - then if they dont say thank you I dont bother to help them again.

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