Journals

System
System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
edited June 18 in AAT student discussion
What A joke these journals were...the only one I didn't have to change was the tax one at the bottom, did every put the Transport costs in even though it said they received the invoice after year end? I did, because they received the invoice... I did it as:

Didtribution Cost DR
Accruals CR

Is this correct?
ยซ1

Comments

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    yes thats what i did.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    Thanks mate, some people came out the exam saying they ignored it because it was after year end, but it does say that the invoice was received, so that puts my mind at rest for that question. Cheers
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    thats what I did too! What did everyone do for the interest one I CR interest and Dr Accruals is that correct?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    Wasn't it wrote down as

    Interest
    Interest Payable

    I left the titles for this one but I think i had to swap the Dr and the Cr over
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    Even though they received the invoice after the year end, the cost related to this year, and therefore we had to debit distribution costs and cr accruals.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    dr and cr was the wrong way for interest and so was the value , sbe ร‚ยฃ200k as ร‚ยฃ200k was already accounted for in the TB
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    yeah i did that too actually...oh thats good
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    The journals:

    1. We ignored the first journal as the credit sales were already included in the revenue figure.

    2. The interest journal was wrong. He wanted to debit another ร‚ยฃ400 expense, when ร‚ยฃ200 was already debited. So we only had to debit interest expense by ร‚ยฃ200 and credit accruals ร‚ยฃ200.

    3. The stock figure had to be written down to the net realisable value. So we took out the cost figure and added the revalued figure.

    My consolidated balance sheet balanced, my Profit and Loss also came out with the right profit figure, as my single company balance sheet balanced.

    I also managed to do the cash flow reconciliation correctly since my cash flow statement balanced.

    I think we couldn't of asked for a nicer paper. I was so relieved when I saw it.

    And of all the ratios they could of asked, they asked us gross profit, net profit, stock turnover and trade receivables. Phewwwww........
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I changed the first journal entry as i thought it was the wrong way round.............?

    Anyone else agree?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I changed the first journal entry as i thought it was the wrong way round.............?

    Anyone else agree?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I changed the first journal entry as i thought it was the wrong way round.............?

    Anyone else agree?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I changed the first journal entry as i thought it was the wrong way round.............?

    Anyone else agree?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I changed the first journal entry as i thought it was the wrong way round.............?

    Anyone else agree?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I changed the first journal entry as i thought it was the wrong way round.............?

    Anyone else agree?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    no as it was already included in tb.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    No. It stated the, say ร‚ยฃ3200, of credit sales were included in the trial balance. It was already accounted for, so you wouldn't need to journal it again.

    Did your financial statements balance?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    Your statements will still balance just means that you have double counted sales and debtors
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    yeah they all balanced fine....?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    oppps nevermind...will i loose marks for that

    What did the paper tell us about the sales again....?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    thats strange.

    Anyone good luck!!!!!!!!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I know it said sales were already in the tb, but they were for April, after the year end. So didn't they need to be journaled out of the year, which would mean that you needed a journal to dr sales and cr receivables?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    it said that a ร‚ยฃx worth of credit sales was already included in tb. The assistant then prepared a journal to account for these sales. However, if you had put this journal through then you would be double accounting. This would have distorted you gross profit figure and then also you final figure. If you then took this figure to your balance sheet working for retained earnings, it wouldn't of have balanced.

    But hey, if you say you balanced them, then you mut have done it right.

    Stop worrying and good luck for August, when the results come out. :)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    I got 100,408 for my balancing figure, and someone else said they got that too....how strange
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    thats what i got toooo.

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    i got that figure too
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    journal 1 was the wrong way round. You had to increase the finance interest to ร‚ยฃ400 (additional 200) and do a journal for the tax...I think
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    i didnt do DFS this time round as i did it in December, but am i right in saying that you had to "cross out wrong answers" and write the correct ones in??

    basic stuff that..... foundation...... :wink:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    well yeah, since its single company accounts.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    Yes I did the same put it to accruals
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:Journals

    Hi

    The first journal needed to be adjusted. The question stated that the items were included in the trial balance, but they should not have been as they were for sales in April and the trial balance was up to March and therefore were not for the year in question. The trial balance was therefore overstating the sales and recievables.

    Hope this helps.

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