can we discuss FRA yet???

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    i put discounts allowed in my TB, i had to put a suspense in of about £1100 - or something like that!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Discounts allowed? :shock: OMG I had a discounts received oh well never mind
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    can we discuss in more detail yet?
    I must admit i got the TB to balance, i found section 1 really easy, i hate ETB's but i think i did what i was supposed to, and as for the last question, which should be a doddle i got all confused, so i doubt that was right, but i was quite pleased on the whole

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    i was told dat de total which we need overal wid both paprs is 70% to get competence.

    I was also told dat If we fail one of de papers nd we did gug in de simulations and other paper den we can go onto level 4 nd we have to re-sit only dat paper in December

    Anywayz i think dat de FRA pper was real easy nd i hope 2 get bout 100% in dat i thoght it might b harder den de ECR but i found de ECR harder den de FRA oh wel i still did excellent in de ECR WELL I HOPE DAT EVERY1 PASSES
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Sorry - I ment discounts Receieved!!!!!!

    what was your discount received figure??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    right we're past the 24 hrs now so I think we're safe to discuss specifics. If only I could remember the specifics!!

    But seriously I think I did OK because I balanced the TB, ETB and BS without any issues.

    I was expecting much more partnership stuff to come up than just calculating the current accounts and then eliminating goodwill in the following year.
    Could have done without the margins and mark ups at the end though ;-)
    Can anyone remember their answers for the last 2 questions?
    I think I got 1,260 as the selling price with a 40% mark up, and 1,500 with a 40% margin.
    Probably got it totally wrong but hopefully it won't matter :-)

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Worried about passing as had to balance the trial balance with a suspense of about 3k.

    The ETB didn't balance either but i got the balance sheet layout about right and ended up about 4k out so not too bad.

    Adjustments went through ok but think i'll have to re-sit in December :cry:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I got the same mark up and margins answers, and i'd revised it that morning so feeling confident that it's right.

    Can anyone remember their net profit figure from section 2? Think i got approx 49050, or 45950, thereabouts anyway!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I also got £1,260 for Mark up and £1,500 as Margin so seeing that someone else has this has reassured me as i wasn't confident.
    On the whole i found it realatively easy. My TB balanced so did My Balance sheet.....but made a BIG mess of my current accounts. I put the Profit onto the Debit side of the current accounts!!!!! My balance sheet balanced because in the Financed by section i put
    Capital
    Current Accounts (opening balance)
    Profit from P&L

    I realised as soon as i walked out that the Profit should've been split to the current accounts and entered as a Credit!!! Sooooo Cross with myself. However i'm fairly confident with everything else. Does anyone know if this is a fundemental accounting error?

    Goodwill Account
    Call me a geek but i had to write this down as soon as i walked out.
    Person A had 40k capital
    Person B had 40k capital
    Person C introduced 80k

    therefore to eliminate goodwill (£150,000) at the split given
    A - 45% = £67,500
    B - 35% = £52,500
    C - 20% = £30,000

    Giving c/f figures of
    A - £47,500 - 40k(capital)+75 (share of goodwill) - 67,500(as above)
    B - £62,500
    C - £50,000

    So......nearly there.......if A gets 45% and B 35% how come A's carried down capital figure is less than B's ??????????????? I MUST have got this so wrong but can't see where?? :shock:

    Also - Just to confirm what did people put for Depreciation method over 5 years? I put 20% Straight Line?

    Sorry this is long winded but i feel so much better already!!!!
    :P
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I got the same answer for margin and mark up and something like £49450 for the net profit.

    Yay! :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I got the same mark up and margin figure! :D
    therefore to eliminate goodwill (£150,000) at the split given
    A - 45% = £67,500
    B - 35% = £52,500
    C - 20% = £30,000

    Giving c/f figures of
    A - £47,500 - 40k(capital)+75 (share of goodwill) - 67,500(as above)
    B - £62,500
    C - £50,000

    So......nearly there.......if A gets 45% and B 35% how come A's carried down capital figure is less than B's ??????????????? I MUST have got this so wrong but can't see where??

    I got and thought exactly the same in the exam but cant see how it could be a different answer?! :shock:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Yes the depreciation over 5 yrs would be straight line 20%.

    I can't remember my net profit figure exactly but it started with a 4!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I got the same for the current accounts but my profit was something like £54k..

    i got £1260 for mark up but didnt know the answer for margin and put £540. i knew it was wrong but had to put an answer in
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Hi just to let you know i got the same with the capital accounts and couldn't understand why (B) had more. But I just had a think about it and with (A )we debit the capital account £67500 this is reducing his capital by this amount. With (B) we reduce his by £52500 so he would be better off.Does that sound right
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I was really pleased with how I did section 2, as I didn't properly understand the balance sheet until the past week or two. especically the last Financed part, and what to include and what to take off. somehow it all came together. The current accounts worked out after capital was added, that one partner was credit, one was debit, and can I ask... there was a question about standards, section 1 i think it was. what should we have gone for there? I remembered something from what I'd read, but i'm not sure if it was correct.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    For the last question:

    Markup I got £1260 (900 x 140%)

    Margin I got £1500 (900/60 x 100)

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I was unsure with margin and markup. i got the 1260, but i thought that the margin would be less? i was probably wrong, i think i got 360, nevermind
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???
    syoung78 wrote:
    ...
    Can anyone remember their answers for the last 2 questions?
    I think I got 1,260 as the selling price with a 40% mark up, and 1,500 with a 40% margin....

    This is what I got too!

    Alison :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???
    klr wrote:
    I got the same mark up and margin figure! :D
    therefore to eliminate goodwill (£150,000) at the split given
    A - 45% = £67,500
    B - 35% = £52,500
    C - 20% = £30,000

    Giving c/f figures of
    A - £47,500 - 40k(capital)+75 (share of goodwill) - 67,500(as above)
    B - £62,500
    C - £50,000

    So......nearly there.......if A gets 45% and B 35% how come A's carried down capital figure is less than B's ??????????????? I MUST have got this so wrong but can't see where??

    I got and thought exactly the same in the exam but cant see how it could be a different answer?! :shock:

    I was going over that too, but decided once goodwill was put back in at a later date (when introducing or retiring a partner) it would factor back in - did think about it for a while though!

    Alison :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    yes there was a question about FRS18 accounting standards - it asked you to name 2 of them. Luckily I had done the June 2005 exam in the morning and it had the same question ;-)

    I said Relevance and Comparibility. The other 2 are understandibility and reliability (but I had to look them up when I got home!)

    One of the partner's current accounts was a debit and the other was a credit, I think.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Well its over, I got the initial TB to balance first time, well happy about that, the depreciation i gave was 20% straight line. The second section was a little harder, and at the end I was trying to find something hard in the last few quesions.

    Tell the man to 'Get Lost' as to the markup and margin OMG how easy.

    Mark Up
    Cost of 900 is 100% and you want to add 40%, simply mutliply 900 * 1.4 = 1,260

    Margin
    900 reesents 60% of the selling price you are looking for, simply divide 900 by 0.6 to give 1,500
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Hi,

    I think FRA went well, but we all have to wait ages to find out. In the meantime I've got 2 questions.

    1) Can anyone remember the total net assets or financed by totals (should be the same) for their balance sheet?

    FWIW I think i had 73000 ish.

    2) What did you put as your answers for the question asking for 2 concepts from FRS18?

    I thought I was smart and pu understandable and reliable, but then after the exam i realised they might have wanted actual concepts like accruals or business entity.

    Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I got the figure to 78,660, both partners had 40,000 capital.

    One had a debit balance on the current accout and the other a credit balance, the two numbers were 4,030 and 5,370. This gives a total if (1,340) for the capital accounts.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    At the beginning of the paper, doing the adjustments for the first TB - for the bad debt I did this:

    DR Bad Debt
    CR Bad Debt Adj

    But some people did

    DR Bad Debt
    CR SLCA (Debtors)

    Does anyone know which was the right one?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    i also did:
    DR Bad Debt
    CR SLCA

    i think you might have got confused with doubtful debts adjustment - (When you already got a provision)
    altho i am not 100% but everything did balance in the end!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I put: Dr Bad debt, Cr SLCA
    I'm pretty sure i got silly margin question wrong and forgot to split goodwill with percentages given and only split it equally.
    Everything else balanced and think ebery other question was ok so reckon i've passed. only time will tell!!!! :?
    What we all need to remember is that even if figures we get are wrong its not so bad as long as we have shown that we know the processes to go through to get the figures and if stuff doesn't balance that we know how to rectify it.
    Whats the worst that could happen?-December resit-No1's gonna die :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    If we fail one do we resit both papers, I'm still confused over this issue as no one seems to really know!!!!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    If you fail FRA and pass ECR then you only re-sit the FRA paper not the ECR paper too, and vice versa, I know people from work who passed only one and just had to resit the other one.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    Hi Can

    Someone confirm something for me, with the Goodwill when the new partner came in to spilt the goodwill it did not mention the old share old only the new share once partner was introduced so therefore spilt goodwill introduced equally between the two partners, when goodwill eliminated spilt between the 3 partners as mentioned with the profit share, does that sound okay.

    I got section 1 to balance and it was fine but my extended trial balance was out by 3500.0o. You know when the profit has to go from P & L To Balance Sheet, so i just did a manually adjustment do you think this is okay i made a note that i9 would investigate next period, but because i spent so long on this i did not have enough time to fully somplete my B Sheet, i put everything in but did not have total to total it all off worried now Zoe
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:can we discuss FRA yet???

    I assumed Goodwill was split equally between the existing partneers. Think i read somewhere that unless stated this was the case.

    I now understand the Goodwill and Why It's the way it is!

    RE my previous post - Does anyone know if my Current account error was a fundemental accounting error?

    :D

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