FRA Exam Today!

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  • Nicolaw1702
    Nicolaw1702 Registered Posts: 64 Regular contributor ⭐
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    Im sure pretty sure, thats what I did also!

    did ure tb balance
  • Greggman
    Greggman Registered Posts: 8 New contributor 🐸
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    Got TB to 175,195 (I think, stuck in my mind for some reason) I deducted prov for b/d from debtors.
  • DAW1986
    DAW1986 Registered Posts: 24 New contributor 🐸
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    I think my TB was somewhere aroudn 175185 i think, so greggman were either both wrong or both right, because we are close to the same mark

    Haha, what did people get for the discount and for the VAT
  • Nicolaw1702
    Nicolaw1702 Registered Posts: 64 Regular contributor ⭐
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    That 175 rings a bell,
  • katieh
    katieh Registered Posts: 25 Regular contributor ⭐
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    I think my tb was around that figure as well. I messed the stock up I know that but I balanced!!!! God I can't remember what I got fot VAT or discounts.

    Oh I want to see the answer now lol
  • DAW1986
    DAW1986 Registered Posts: 24 New contributor 🐸
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    i think for VAT i got 1800 discounts im not sure on though
  • aer87
    aer87 Registered Posts: 26 Regular contributor ⭐
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    Fra

    Hey i did my FRA resit yesterday
    Again section one caused problems!
    I managed 2 post accounts better, but trial balance never balances with me
    And again it didn't! I posted 2 a suspense account!
    Section 2 was a breeze though, and i got £100,000 profit as well :001_smile:

    I also had 2 technician exams this week!
    Finished now, i have my life back until results in Feb!
    How has evry1 else felt they did?

    Amz
  • aina2
    aina2 Registered Posts: 15 New contributor 🐸
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    steveborner wrote: »
    dr prov bead debt
    cr SLCA


    i think that is what I put

    I think it should be Dr Bad debts
    Cr Provison for bad debts
  • Kyle
    Kyle Registered Posts: 45 Regular contributor ⭐
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    I debited Doubtful Debts Adjustment, credited Provision for Doubtful Debts.

    645 if memory serves?
  • Greggman
    Greggman Registered Posts: 8 New contributor 🐸
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    It was described as a provision for bad debt tho' rather than bad debt written off?
  • Kyle
    Kyle Registered Posts: 45 Regular contributor ⭐
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    DAW1986 wrote: »
    I think my TB was somewhere aroudn 175185 i think, so greggman were either both wrong or both right, because we are close to the same mark

    Haha, what did people get for the discount and for the VAT

    I had that exact number, too. So fingers crossed we're not both stupid!!!
  • katieh
    katieh Registered Posts: 25 Regular contributor ⭐
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    i could have done it that way round but i know i used them 2 accounts
  • DAW1986
    DAW1986 Registered Posts: 24 New contributor 🐸
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    Provision for bad debt is reducing your debtors, making assumptions that not all of your debtors will pay, therefore you credit SLCA and debit provision for bad debt.
  • aina2
    aina2 Registered Posts: 15 New contributor 🐸
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    DAW1986 wrote: »
    Provision for bad debt is reducing your debtors, making assumptions that not all of your debtors will pay, therefore you credit SLCA and debit provision for bad debt.
    You are not true. Provision is alwas credit.

    Bad debts are reducing your debtors so when you have a Bad debtd Dr then you Cr SLCA
  • aina2
    aina2 Registered Posts: 15 New contributor 🐸
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    Kyle wrote: »
    I debited Doubtful Debts Adjustment, credited Provision for Doubtful Debts.

    645 if memory serves?
    Correct!!
  • DAW1986
    DAW1986 Registered Posts: 24 New contributor 🐸
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    aina2 wrote: »
    You are not true. Provision is alwas credit.

    Bad debts are reducing your debtors so when you have a Bad debtd Dr then you Cr SLCA


    Wont that mean that you are actually writing off the bad debt though if you Dr bad debts and Cr provison?

    Or if you DR debtors and Cr provision then your increasing your debtors which isnt right?
  • aina2
    aina2 Registered Posts: 15 New contributor 🐸
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    If you DR debtors and Cr provision you are increasing debtors but at the same time you assume they won't pay. That does not make sense. I've come across the following:
    either DR Bad debts CR SLCA - meaning they won't pay, writing bad debts off
    or DR Bad debts CR Provision for bad debts - meaning you're not sure whether they'll pay.
  • DAW1986
    DAW1986 Registered Posts: 24 New contributor 🐸
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    aina2 wrote: »
    If you DR debtors and Cr provision you are increasing debtors but at the same time you assume they won't pay. That does not make sense. I've come across the following:
    either DR Bad debts CR SLCA - meaning they won't pay, writing bad debts off
    or DR Bad debts CR Provision for bad debts - meaning you're not sure whether they'll pay.

    The last one makes more sense than the first but we have always been told to DR provision and CR SLCA therefore reducing your debtors to what you think will pay and putting the provision for bad debt into its own account :S
  • Greggman
    Greggman Registered Posts: 8 New contributor 🐸
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    Also I don't think adjustment was involved as prior no provision for b/d existed?
  • steveborner
    steveborner Registered Posts: 21 New contributor 🐸
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    DAW1986 wrote: »
    The last one makes more sense than the first but we have always been told to DR provision and CR SLCA therefore reducing your debtors to what you think will pay and putting the provision for bad debt into its own account :S


    DAW1986 is correct as far as I have been taught. As you are creating a general provision for you debt, we were asked to take 5% of debt not bad debt co you credit the SLCA as this is where the figure has come from, then obv dr provision
  • aina2
    aina2 Registered Posts: 15 New contributor 🐸
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    DAW1986 wrote: »
    The last one makes more sense than the first but we have always been told to DR provision and CR SLCA therefore reducing your debtors to what you think will pay and putting the provision for bad debt into its own account :S
    I think when you say provision u think bad debts then we both are right, but this is writing the bad debt off but in a question we were to make a provision so I don't think you should get SLCA involved. Anyway I didn't. Let's just hope we get precious points
  • DAW1986
    DAW1986 Registered Posts: 24 New contributor 🐸
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    Yeah if you credit your provision for bad debt isnt that saying that your going to recieve 645 worth of bad debt? CR is generally income, if you were reducing the provision it would be credit wouldnt it?

    AHHH Im getting confused now
  • steveborner
    steveborner Registered Posts: 21 New contributor 🐸
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    aina2 wrote: »
    I think when you say provision u think bad debts then we both are right, but this is writing the bad debt off but in a question we were to make a provision so I don't think you should get SLCA involved. Anyway I didn't. Let's just hope we get precious points

    the provision is created from the debt amount ie debtors/slca......slca is involved and so should be credited, as your are reducing this to a level of debt you beleive you will receive in full
  • aina2
    aina2 Registered Posts: 15 New contributor 🐸
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    steveborner wrote: »
    DAW1986 is correct as far as I have been taught. As you are creating a general provision for you debt, we were asked to take 5% of debt not bad debt co you credit the SLCA as this is where the figure has come from, then obv dr provision
    Eventually in Balance sheet that's what you'll get. SLCA minus Provision for doubtful debts which same to crediting SLCA
  • katieh
    katieh Registered Posts: 25 Regular contributor ⭐
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    sod it i can't remember now what i did and do i care i can't do anything about it now the papers are closed lol
  • steveborner
    steveborner Registered Posts: 21 New contributor 🐸
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    aina2 wrote: »
    Eventually in Balance sheet that's what you'll get. SLCA minus Provision for doubtful debts which same to crediting SLCA

    thats what me and dwaw have been saying,

    CR SLCA
    DR Provision for doubtful debt
  • Kyle
    Kyle Registered Posts: 45 Regular contributor ⭐
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    DAW1986 wrote: »
    Yeah if you credit your provision for bad debt isnt that saying that your going to recieve 645 worth of bad debt? CR is generally income, if you were reducing the provision it would be credit wouldnt it?

    AHHH Im getting confused now


    The Provision for Doubtful Debts goes to the Balance sheet, reducing the figure of your debtors (the credit being a reduction in an asset). The Doubtful Debts Adjustment goes to the P&L as an expense.

    Or that's how I've always understood it.
  • Greggman
    Greggman Registered Posts: 8 New contributor 🐸
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    That's what i did anyway Steve:thumbup1:
  • DAW1986
    DAW1986 Registered Posts: 24 New contributor 🐸
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    Kyle wrote: »
    The Provision for Doubtful Debts goes to the Balance sheet, reducing the figure of your debtors (the credit being a reduction in an asset). The Doubtful Debts Adjustment goes to the P&L as an expense.

    Or that's how I've always understood it.

    There fore on your TB it is CR SLCA and DR Provision for Doubtdul debts

    So We are right gregg, Kyle and Steve
  • aina2
    aina2 Registered Posts: 15 New contributor 🐸
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    DAW1986 wrote: »
    There fore on your TB it is CR SLCA and DR Provision for Doubtdul debts

    So We are right gregg, Kyle and Steve
    I'll stick with
    DR Bad debts P&L
    CR Provision for doubtful debts BS

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