URGENT u6 please help

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
hi there, i have my u6 sim tomorrow and im having dificulty with the accounts for over absorption of overheads.<BR>lets say ive over absorbed £100. <BR>the a/c i have are<BR>WIP a/c<BR>p&L a/c<BR>Bank a/c<BR>O/H expense a/c<BR>Under/Over aborbtion a/c

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    URGENT u6 please help

    credit overhead control a/c with the absorbed amount (which includes your over-absorption of 100) and debit WIP A/c. Since now you will have 100 pound extra on the credit side of O/H control, debit it (over-absorption to P& L) and Credit P& L by 100. This way the overhead over absorbed of 100 pound goes to the income side of the P & L a/c. Hope I have not confused you too much and it helps.<BR><BR>Stella
  • System
    System Posts: 100,534 🤖 Admin 🤖
    URGENT u6 please help

    As Above,<BR><BR>Just think of it as increacing the income and therefore reducing the expense

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