Home For AAT student members AQ 2016 Advanced Diploma in Accounting Final Accounts Preparation

Mock exam query

Sara01Sara01 Registered, AAT Student Posts: 7
Hi, I have a question in relation to the mock exam for Final Accounts Preparation (Mock exam 1, Q2)

The trader has a policy of allowing customers to settle their accounts one month after the sale is
made.
(c) Which of the following is most likely to be the total on the sales ledger at the end of the
financial year?

Sales for the year were £64900 and the choices for the answer to the Q are: £6940 (correct answer), £16225 and £64900.

This question also cropped up in the text book and I didn't understand why the answer was what it was. It's probably really simple to work out but unless I understand then this could be the question that costs me in my exam tomorrow!

Thank you.

Comments

  • davealucasdavealucas LondonMAAT Posts: 86
    @Sara01 was the answer £6940 or was it £6490. If the latter, it would be the inclusion of VAT on the sales ledger (you don't include it on the sales figure in the general ledger).

    Assuming that my suggestion that you have transposed the figure is correct, the calculation would be:

    Annual Sales £64,900 divided by 12 equals £5,408.33
    VAT on those sales at 20% equals £1,081.67
    Sales Ledger would be £5,408.33 plus £1,081.67 equals £6,490.00
  • Sara01Sara01 Registered, AAT Student Posts: 7
    Thank you so much for your reply. I've double checked and the answer is £6940 so it must be a typo. What you say makes absolute sense. However this doesn't work when I apply it to the Q in the Kaplan text book. I'll assume they've made a mistake too and should this come up in today's exam then I shall go by your workings.

    Thanks so much, this has been bothering me for days.
  • Pian32Pian32 MAAT Posts: 388
    The only other thing it could be is if you had some more information regarding the end of the year as part of the main body of text.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Planned June 2021
    F8
    F9 - Planned June 2021
  • Sara01Sara01 Registered, AAT Student Posts: 7
    Thanks @Pian32 I need to head off shortly for the exam so will dig deeper into that later as I'm curious. Need to know how they got the answer.
  • Pian32Pian32 MAAT Posts: 388
    Good luck
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Planned June 2021
    F8
    F9 - Planned June 2021
    Sara01
  • ChanaatChanaat Registered Posts: 39
    Hi Sara01,

    Did you figure out how the answer was arrived?
  • casio91casio91 Registered Posts: 3
    Hi all, I'm also really confused by this question. The additional information says that the business is not registered for VAT. So there would be no inclusion of VAT in the sales ledger?
    BrendaGram
Sign In or Register to comment.