FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
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This is what I got? Did anyone else get this? <BR><BR>1.1 Sales - I got the sales to amount £55,000<BR><BR>1.2 Purchases - I got £350<BR><BR>1.3 Capital - I had a credit of £10,000 (for the capital introduced) and £4,000 (for the car), so in total £14,000 as a credit on the capital account. <BR><BR>- I cleared the suspense account by the journals, the suspense account was £9,200 and then the journals added up to £9,200 on the debit side, thus clearing the suspense account. <BR><BR>- The depreciation amount came to £850. <BR><BR>- The rent for the year was £5,580 <BR><BR>- The general expenses for the year was £2,240 <BR><BR>- The provision for bad debts adjustment - Profit and Loss account was DR £1,490<BR>- The provision for bad debts - Balance Sheet was CR £1,490 <BR><BR>- The trial balance figure was £71,880 and it balanced. <BR><BR>- The profit share available for distribution was £19,000 and it was divided by 8 months (01/04/04 - 30/11/04) and 4 months (01/12/04 - 31/03/05). <BR><BR>Dan got £5,067 + £2,533<BR>Kim got £3,800 + 1,899<BR>Ted got £3,801 + £1,901 <BR><BR>- The goodwill account: DR side of the goodwill account had "Goodwill Introduced" £100,000 and the CR side of the goodwill account had - "Goodwill Eliminated - Transfer to Dan's Capital Account" £40,000 <BR> - "Goodwill Eliminated - Transfer to Kim's Capital Account" £30,000 <BR> - "Goodwill Eliminated - Transfer to Ted's Capital Account" £30,000 <BR><BR>- For the three reasons for why the physical stock may not agree with the stock ledger cards is becase: <BR> 1) someone mya have forgotten to record on the stock ledger card when they have issued or received stock <BR> 2) theft <BR> 3) damage <BR><BR>It is important to reconcile your stock regularly because if there are any concerns (such as theft of stock) it can be dealt with immediately. Also, if your stock card said you had more stock that you physically have, then you are overstating the value of your stock in the accounts, and vice versa. <BR><BR>- FRS18 - is the one that I messed up - I wrote 1) the size of the business and 2) the nature of the business. But I looked it up in the text book and it said 1) Going conern and 2) Accruals concept. <BR><BR>- For the question about the difference between a hire purchase lease and a opearting lease: <BR><BR>I wrote that a hire purchase lease is one where any costs incurred by the equipment would be accountable by the business (i.e. they would have to pay for it). You could show the equipment as an asset in the balance sheet and the payments as an expense in the profit and loss account. <BR><BR>I wrote the a operating lease is one where you pay out regular payments, but any maintenance costs is accountable by the leasor (i.e. they would have to pay for it). You would show the payments as an expense in the profit and loss account and a liability in the balance sheet. <BR><BR><BR><BR>Have I missed anything. Please let me know what you got, and if there are any tutors reading this, please let me know whether you got the same or think what I have done is right. <BR><BR><BR><BR>Many Thanks <BR><BR><BR><BR><BR>
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FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
How do you remember that stuff???<BR>With a photgraphic memory like that I think you're gonna be alright in the exams0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
I got purchases at 3300 i think with the b/f figure at 3500 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
I cant even remember my member number let alone the questions,<BR><BR>But the £3300 does ring a bell, I put that because the closing balance was £350 on the PLCA with payments of £2950, totalling the £3300 mentioned0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
Agree with most of section one apart from the accurals and prepayments, i can't remember the figures but my trail balance was £70340 (roughly), which balanced. The four accounting principles are Relevance, Reliability, Comparability and Understandability.<BR><BR>My profit was £103K, can't remember was the profit share was after that something like £20750 but i had a feeling my pofit was wrong as i did a mini B/S on the scrap paper. Anyhow i couldnt find it so carried on. My goodwill a/c looked something like this:<BR>DR B 50,000 CR A 40,000<BR>DR C 50,000 CR B 30,000<BR> CR C 30,000<BR>Pretty much the same for everything else!<BR><BR>Do you remember what you got for the costing paper? i found that one a real bugger!0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
Sorry, I took that last December and passed (woohooo). Good Luck.0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
<BR>......interesting... The bad debt provision you put in..... the question said that she knew she wouldn't get the funds therefore why a provision? surley the debt is bad and needs to be written off straight away? i.e Dr bad debt expense Cr debtors<BR><BR>not so?<BR><BR>Anyway.... you have an amazing memory to remember all that.....well done!!<BR>0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
well i would say you have passed <BR><BR>not many of us balanced the tb luck you<BR><BR>but all sounds about right with mine<BR><BR>capital account you should have took the drawings out of 18,000 which left 4000 in capital (i think)<BR><BR>good luck anyway<BR><BR>wow i can't believe you remembered it wall0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
That all looks very familiar up to yout trial balance total-cant remember what I got for that. My total net profit was about 19, 052 (?) and was split 6,000 for the first eight months (40%, 30% and 30%) and the other 13,052 was split equally between the 2 remaining partners as one had retired.<BR>Our stock card answers are virtually identical, two things when choosing a/c policies are relevance and reliability (i.e. your stock valuation method should be suitable to the type of stock you own). The lease question threw me cos I hadn't revised that (oops!) but i know that one type of lease will show the assets in your final accounts and depreciate them where the other will not.<BR><BR>Looks like we'r in the same boat! Good luck!!0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
I agree-nothing was mentioned about a provsion-u just had to write off the debt<BR><BR>Bad Debts written off Dr.<BR> To SLCA0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
Pretty much the same bar:-<BR><BR>Purchases - £3,300<BR>Bad Debts - As Thunderbird2 - should have debited BD expense, credited Debtors as £1,940 was written off<BR>TB - can't remember exact figure but was £70,000 something<BR>Profit Share - can't remember figures but was 50/50 for last 4 months<BR>Goodwill - £100k introduced as £40,000 & 2x£30,000, eliminated as 2x£50,000<BR>FRS 18 - 4 principles as per zimara<BR>Finance Lease & Operating Lease - Finance lease is usually where asset is retained by business at end of lease and so treated as fixed asset with depreciation in b/s - Operating lease - like a rental agreement, payments to P&L, all maintenance etc. carried out by Leasor<BR><BR>Fingers crossed!<BR>0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
my totals for the trial balance were 70390 in both sides, without having a suspense account<BR><BR>good luck<BR><BR>0 -
FRA - MY ANSWERS - ANY TUTORS OUT THERE TO CHECK MY ANSWERS
I think you will pass. but trial balance figure is not coreect. i do not remember the amout very well . I think 72986.<BR>And accounting policy wrong. the correct answer is realibility, understandibiliti,relevence ......<BR>goodwill account first you transfer to capital account by debiting, old sharing ratio. then eliminated by credit side new ratio.<BR>think about you , partners salary and int on capital.<BR>if you no more error in you are paper ,then you will passed.<BR>thank you are information. I hope god will bless you.<BR>thank you <BR>from : fahud( faudy)<BR>0