Suspense

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi all,<BR><BR>Exam went really well, apart from messing up the suspense. Couldn't get it to clear due to part e of the adjustments.<BR><BR>i dr the sales with 350 and cr the slc with 350, what a silly mistake as that would make the slc balance £1650 rather than £2350 as it should be. Therefore i couldn't see that i needed to cr the suspense. <BR><BR>This would mean my gross and net figure would have been wrong, also the appropriation account, i am hoping i will only loose the mark once as the mistake is consistant throughout.<BR><BR>The only other thing i struggled on was the goodwill account, as we have never done a goodwill 't' account only as part of a capital account, however i am hoping i have put it on the right side.<BR><BR>Hope everyone else did ok.<BR><BR>Regards,<BR><BR>Shelley.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    Hi <BR><BR>I think I made a slight calculation error on the depreciation or my rounding was out on the net profit. Everyong else seems to have £101,250 as a profit and I make it £101,288.4, only out by a few pounds to hopefully still gets marks for workings and consistency too.<BR><BR><BR>Are you going on to Tech level next?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    I buggered up the Suspense too, only mistake I can see though.<BR><BR>With the Goodwill you should have had<BR><BR>Dr<BR>40,000<BR>30,000<BR>30,000<BR><BR>Cr<BR>50,000<BR>50,000
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    But if the goodwill was introduced on 30 nov 04, thats when the old partner retired, therefore you only include the remaining 2 partners, wouldn't you???<BR><BR>wouldn't you have to have an opening balance of 100,000 in the goodwill account?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    <BR><BR>Yes doing tech, signing up for it tomorrow, so there's no going back.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    No becauase it will be left as Nil, as stated in the question.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    You have to share out the goodwill to all three members first then debit the 2 remaining parters. Don't forget that goodwill is a non physical form entry, so at the end of it goodwill must equal zero. The existing 2 members are in effect buying Dan's share of the business.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    Oh ok,<BR><BR>Still a bit confused but i am sure it will click.<BR><BR>Shelley.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    you needed to debit sales by 350 and sales ledger control by 350 and credit suspense by 700. <BR>hope thats right anyway!<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    you needed to debit sales by 350 and sales ledger by 350 then credit suspense by 700. this cleared suspense together with the other adjustment which i cant remember.<BR>hope its right anyway!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    Hi Petrol<BR><BR>My profit was 101288 as well, so we obviously made the same mistake - as you say probably in depreciation - any idea what we did wrong? I knew the figure was wrong as it was not "round" but did not worry, will just get the marks for the correct processing!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    looks like i messed up on the goodwill account then, The question threw me because it said something about transferring the goodwill to the capital account so I debited 100,000 and credited each partner 40,000, 30,000 and 30,000 respectively to give a nil balance, oh well it looks like Ive made so many mistakes I must have failed.<BR><BR>I cleared the suspense though!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    <BR>First suspense was with the vehicle purchased, and will credit Suspense 8500<BR><BR>the second one, as most of us say, 700 against sales and SLCA<BR><BR>cheers<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    I don't know what on earth I did wrong, my profit was approximately £111k. I obviously forgot to deduct something. Can't recall what though.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Suspense

    annoying though, when its only £38.40 out. Like you say we should hopefully get deducted one point and the rest marked as normal.<BR><BR>Kept kicking myself when i got back, silly reading mistake!!<BR><BR>Apparantly the initial cost was £2000 and the net book value was £1,024. I read it as cost £2000 and acc dep of £1,024, so the loss on disposal i worked out to be £976 but should have been £1,024 ( 2000-1024= acc dep of 976)<BR><BR>So this would have over stated profit by £48.0 but then you have the depreciation calculation that should have been £4280 and i dot £4289 diff of £9.60 over. total diff of £38.4<BR><BR>I thought at the time it was strange the figure wasn't rounded when everything else was. Never mind roll on August for results

Categories

Privacy Policy