Credit control, sample assesment 2, task 1.2 g)

genesta
genesta Registered Posts: 26 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Current turnover is 600$ and currently customers pay 60 days after month end.company introducing 2% discount for month 3 if customers pay withing current month. it is expected that 80% will take advantage.
what is cash receipt for month 3?

1month turnover 600,000
2ns - 600,000
3rd - 600,000

What do i miss here?
the answer is 1070400$

Comments

  • Adele69
    Adele69 Registered Posts: 320
    When I was going through this at the beginning of Nov I had difficulty on the same question. If payment within 30 days from 60 days it would be 600,000 + ((80% of 600,000 = 480,000) x 98% = 470,400) = 1,070,400

    Curious why are you going through AQ2013 practice assessments if there will be no assessment centres now offering the exam between now and 31 Dec 2017 which is the final deadline for AQ2013 exams?
  • genesta
    genesta Registered Posts: 26 Regular contributor ⭐
    Thank you. I tried something very similar, but it did not work...

    Re 2013: I have booked the last on 28th...
    :)
  • Adele69
    Adele69 Registered Posts: 320
    Oh good luck, I didn't know there were any exam centres open, is it in London? I would have needed to go to one in case I didn't pass my last exam, the same exam on Nov 13 though fortunately I passed. No big surprises, I don't think there was anything as confusing as that one. If you are up to date on prompt payment discount, know your ratios and can understand contract terms. To revise I had to go back over questions I got wrong in question banks and practice assessments just to reinforce understanding, repeat those questions, pretty much the format I've used for all level 4.
  • genesta
    genesta Registered Posts: 26 Regular contributor ⭐
    Yes, in London.

    Thank you very much. I am a bit confused about huge size tasks to read, to solve etc. It even upsets me (the kindest word just because its xmas :) )

    Have you finished everything?
  • Adele69
    Adele69 Registered Posts: 320
    I think on written questions, topics like Overtrading just make some flash cards with notes on how it can occur and the steps to reduce it. Same with Credit checks and the effects of changes in profit levels, debt levels etc then in the exam you would have some structure to the answer which is relevant. When checking answers write out any bits you missed from your answer, help reinforce what you need to remember. This usually helps with getting enough marks. If you do get stuck write something then try to come back to it at the end. The memory can play tricks but still work away at what is hidden away. check out the Feynman technique https://www.youtube.com/watch?v=_f-qkGJBPts

    On both optional modules (Business Tax and Credit Control) I had enough time to go back over answers and pick over any I felt were poorly answered or needed more work. Its a long exam 2.5 hours but not difficult if you are well prepared.

    I got confirmation email on Saturday that I'd completed the Accounting Qualification, all first time passes L2-L4 and I'm not particularly talented in accounts, just put in a lot of effort in a methodical way
  • genesta
    genesta Registered Posts: 26 Regular contributor ⭐
    Congratulations!!! Amazing! Well done.
    Be my mentor. I need your help.. :)

    May I disturb you in case of my struggle?

    I like math and i am quite ok with it, but I dont like too much talking... so all stories i cut short. :)
    I am sensitive about quality of "our" aat. I find stupid mistakes in their calculations like rounding up or down... etc.
    These things reduce my respect... Customer service is unexisting... :))
    Lets be positive - its holiday season.

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