Unit 3 Questions??Just a little help please x

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hiya Guys.

I have just a few questions i hope someone can help me with.

First i need to know the DR/CR entries for Rent Received.

Rent Rec CR
Rent Rec Control A/C ??
Bank DR

Will the control a/c entrie be a DR the same as the sales ledger control a/c because it is money coming into the business?? Is there an easy way i can remember this?

My second question probably seems rather thick of me but what are 4 characteristics of a good filing system? will this be.. documents easily located, readily avaiailable..

i cant think of 2 more.

I hope some one can help me i have my sim next monday and need to know these questions.

Thanks in advance for your assistance.

Te

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 3 Questions??Just a little help please x

    Hi Te,

    is this the main revenue received in this simulation/exercise, or is the rent additional revenue, which is received over and above the business's normal trading operations?

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 3 Questions??Just a little help please x

    im not sure ive just been advised by my tutor that this is one of the supplimentry questions in the unit 3 sim. they didnt specify, all i know is that rent received is a credit and then you would debit the bank, ut i dont know what to do with the control a/c??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 3 Questions??Just a little help please x

    I assume the original entries (based on the info in your post) were these when the original invoice was raised:

    Debit: Sales ledger control account (debtors control)
    Credit: Rents receivable

    You then say that your money is received (i.e. debit bank) so the entries would then be:

    Debit: Bank
    Credit: Sales ledger control

    A further "one sided" entry would take place which would be to credit the customers "memorandum" account in the sales ledger, i.e. Mr Smith's sales ledger account. In other words, when you produce an aged debtors listing the total value of all the customer's balances on that list make up the total balance on the sales ledger control account. So, going back to your example, in order to agree the total of the aged debtors list to the sales ledger control you would have to credit the customers individual account to enable the list to agree. This "one sided" entry does not form part of the double entry.

    Sorry for the long-winded explanation!!

    Hope that helps.

    Steve

    p.s. maybe it might be an idea to ask your tutor if the original invoice was raised via the sales ledger. If it isn't and it is simply a cheque for rent then the entries are merely:

    Debit bank
    Credit rents received

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