HMRC & My Boss ARE SATISFIED BY MY WORK BUT NOT AAT EXAM :(
KrisNick
Registered Posts: 1 New contributor 🐸
Four years working & preparing vat returns, bank analysis, payroll and more was the reason to decide taking AAT Level 3 Accounting just to back up my experience with qualifications.
However, T accounts in preparation for trial balance are so confusing and I do not know what to do. All that seems too alien to me and I fail to relate real life examples
In my daily practice VAT returns and Bank Analysis consist of rolls DATE|DETAILS|TOTAL|VAT (only for vat returns) and NET which goes to the next roll specifying type of expense e.g. purchases, light & heat, water rent rates and so on. As far as for the takings (earnings) they are in similar format date, details e.g. invoice number and total.
Looking at Profit & Loss and Balance Sheets, all figures are listed one under the other in one roll or in two rolls e.g. 2021 | 2020 but these are not DR/CR. It is common sense that all expenses and liabilities will be subtracted from the sales to find net...
Using the tests from my study book, I can build a trial balance but I CANNOT build T accounts NOR use them to build trial balance. I am ashamed to ask for help as it might sound pretty silly so I do not know what to do. Perhaps I will never get it :,(
And yet I do not think that I am doing it wrong as if I did HMRC will come after me or my boss will shout...
I doubt out there someone will actually understand me but if you do please advice me on what to do. I rather be practicing than writing this here but it is the result of desperate attempts in understanding.
However, T accounts in preparation for trial balance are so confusing and I do not know what to do. All that seems too alien to me and I fail to relate real life examples
In my daily practice VAT returns and Bank Analysis consist of rolls DATE|DETAILS|TOTAL|VAT (only for vat returns) and NET which goes to the next roll specifying type of expense e.g. purchases, light & heat, water rent rates and so on. As far as for the takings (earnings) they are in similar format date, details e.g. invoice number and total.
Looking at Profit & Loss and Balance Sheets, all figures are listed one under the other in one roll or in two rolls e.g. 2021 | 2020 but these are not DR/CR. It is common sense that all expenses and liabilities will be subtracted from the sales to find net...
Using the tests from my study book, I can build a trial balance but I CANNOT build T accounts NOR use them to build trial balance. I am ashamed to ask for help as it might sound pretty silly so I do not know what to do. Perhaps I will never get it :,(
And yet I do not think that I am doing it wrong as if I did HMRC will come after me or my boss will shout...
I doubt out there someone will actually understand me but if you do please advice me on what to do. I rather be practicing than writing this here but it is the result of desperate attempts in understanding.
0
Comments
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T Accounts only form the basis for double entry book-keeping (i.e., for every debit is a corresponding credit) and this is taught at level 2 of AAT. All that happens is the T accounts will have a series of balances at year end, and these balances would transfer to the trial balance before creating the profit & loss and balance sheets.
Profit & Loss Statements and balance sheets are for reporting only and do not form part of the double entry system and should be ignored for the purposes of double entry.
It seems to me that you need to go back to the basics of the double entry system and see how that builds up over time.0 -
The AAT Examinations aren't simple, are they..?! The 70% pass benchmark means you really need to know the material.
I suggest that you purchase the Kaplan Study/Exam Kits for the relevant modules. I think you need to go back to basics, with Level 2 Book-Keeping, so you can see how the t-accounts are built-up etc.0
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