AAT Simulation

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:23AM in AAT student discussion
Hi has anyone done the AAT simulation - D1154 - preparing ledger balances and an initial trial balance. I am really stuck on number 2, it asks you to prepare journals but i can't see how you can do it?! It says the debtors control account contains an error of double entry.
On the Debit side = balance b/f , Sales/VAT and Bad debt written off.
On the Credit side = Bank.
Can anyone see an error of double entry here?
Help would be appreciated.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AAT Simulation

    i could be wrong but if a bad debt is written off it will reduce the amount owed to you from credit sales so it should be on the credit side with the bank which also reduces the amount owed,.

    hope that helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AAT Simulation

    No you are not wrong......
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AAT Simulation

    Thanks very much for your help

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