FRA Exam Today!

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  • Greggman
    Greggman New Member Registered Posts: 8
    out of interest when do they post papers as "past papers" on here...then we can all check up on ourselves!
  • matt
    matt New Member Registered Posts: 10
    FRA Closing Stock

    Hi,

    With regards to the closing stock the closing stock figure was 39,300 and not 41,000.

    If you sell stock that is obselete then you would not add back in the money that you got for them.

    This money would be added to sales as additional income.
  • DAW1986
    DAW1986 Settling In Nicely Registered Posts: 24
    matt wrote: »
    Hi,

    With regards to the closing stock the closing stock figure was 39,300 and not 41,000.

    If you sell stock that is obselete then you would not add back in the money that you got for them.

    This money would be added to sales as additional income.

    Would the NRV of this stock not be 1700 though?
    Therefore stock has to be valued at the lower of cost or NRV?
  • matt
    matt New Member Registered Posts: 10
    Closing stock

    Sorry no the stock is obselete and has been sold and therefore will not be added back in.

    I have just checked with my boss and he stated this is correct.

    I nearly fell into the trap of adding it back in but thats incorrect. Dont worry about it as its only a minor error.
  • Kyle
    Kyle Feels At Home Registered Posts: 45
    matt wrote: »
    Sorry no the stock is obselete and has been sold and therefore will not be added back in.

    I have just checked with my boss and he stated this is correct.

    I nearly fell into the trap of adding it back in but thats incorrect. Dont worry about it as its only a minor error.

    The stock was valued at the end of the year, and the obsolete stock was sold "at a later date", ergo in the next year. Therefore, it's NRV is 1700. It's a year end adjustment.
  • matt
    matt New Member Registered Posts: 10
    Closing stock

    The stock was valued at 4200 as obselete.

    Whether you sold that for 4200 or 1700 doesnt matter this is the amount that will be deducted from the closing stock and the amount raised by that additional income will then be added back into sales.
  • Greggman
    Greggman New Member Registered Posts: 8
    Sounds logical to deduct the whole amount of obsolete stock from closing stock and then classify the sales value as "other sales" which is what i did also.
  • Kyle
    Kyle Feels At Home Registered Posts: 45
    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


    No, provisions are like accruals, and should always be credits.
  • matt
    matt New Member Registered Posts: 10
    Closing Stock

    Thanks Greggman

    Seems like we all have different opinions on the closing stock but its only a minor point so should all get marked for it correctly.
  • katieh
    katieh Feels At Home Registered Posts: 25
    i have to say i didn't add it because something just told me not too. Matt what did you get for NET PROFIT then?
  • matt
    matt New Member Registered Posts: 10
    Hi Katie,

    I honestly cant remember between 90-100k but not sure on figure sorry you?
  • katieh
    katieh Feels At Home Registered Posts: 25
    i got 98,300 which to me is like those that got a straight 100,000 - the 1,700 for stock
  • sebastianforbes
    sebastianforbes Well-Known Registered Posts: 172
    journals and trial balance...

    debit = a) bad debt and b) adjustment for bad debt

    credit = a) slca and b) provision for bad debt


    goodwill...

    debit = 25,000, 12500, 12500

    credit = 30,000, 20,000


    anything else is wrong.
    if you don't agree... seek help !
  • JoBo
    JoBo Settling In Nicely Registered Posts: 16
    Hmmmmmm......
    journals and trial balance...

    debit = a) bad debt and b) adjustment for bad debt

    credit = a) slca and b) provision for bad debt


    goodwill...

    debit = 25,000, 12500, 12500

    credit = 30,000, 20,000


    anything else is wrong.
    if you don't agree... seek help !

    I was taught that you credit another provision for bad debt (might have a slightly diff name) to be taken off the slca on the balance sheet. That way whoever is using the balance sheet can see that it is only a provisional bad debt and the money still may be recovered.

    Also i lost the plot sighltly due to nerves, was ok after about half an hour and went back to correct the crazy errors i made, tb balance tho but i left a huge amount of crossings out and tipp-ex on the first few pages and then more at the begining of part 2. Does this matter do you think??? :confused1:
  • Richard
    Richard Trusted Regular Registered Posts: 373
    How did the people who got 98,300 as the net profit get on with the appropriation account?

    I've tried to work it out and the two partners who receive a 25% share would get 12287.50 - I have read on the AAT website that if you end up with pence on an answer in the FRA exam, you have gone wrong somewhere.
  • Kyle
    Kyle Feels At Home Registered Posts: 45
    JoBo wrote: »
    I was taught that you credit another provision for bad debt (might have a slightly diff name) to be taken off the slca on the balance sheet. That way whoever is using the balance sheet can see that it is only a provisional bad debt and the money still may be recovered.

    Also i lost the plot sighltly due to nerves, was ok after about half an hour and went back to correct the crazy errors i made, tb balance tho but i left a huge amount of crossings out and tipp-ex on the first few pages and then more at the begining of part 2. Does this matter do you think??? :confused1:

    You do credit the Provision For Doubtful Debts, and it is a balance sheet item.

    I think they expect a lot of crossing out, I mean, you had to go through like 6 pages for the information you needed, so you could easily miss something with the stress of the exam and all. But we were told we weren't allowed to use tipex in the exam rules sheet thingy, so I had to scribble and draw arrows!
  • Kyle
    Kyle Feels At Home Registered Posts: 45
    Richard wrote: »
    How did the people who got 98,300 as the net profit get on with the appropriation account?

    I've tried to work it out and the two partners who receive a 25% share would get 12287.50 - I have read on the AAT website that if you end up with pence on an answer in the FRA exam, you have gone wrong somewhere.

    Yeah, exactly. They never go to decimals. That's why I was confident with 100,000. It just worked through the entire Appropriation account so smoothly, if you'd made a mistake, one of those numbers would surely come to a decimal (unless you were terribly unlucky!).
  • JoBo
    JoBo Settling In Nicely Registered Posts: 16
    Ahhhh,
    I thourght you were allowed tipex in moderation, i used it a bit and crossed out the rest. Ended up writing half of it in pencil then going over it in pen when i was sure it was right (i hope)
  • Kyle
    Kyle Feels At Home Registered Posts: 45
    Could've just been our center. I was tempted to do it in pencil, but I was worried I wouldn't have time to go over it.
  • Greggman
    Greggman New Member Registered Posts: 8
    Of course to credit Debtors (SLC) the debt would have to be attributable to a specific debtor account in the subsidiary account! See we're learning all the time!
  • Natasha1985
    Natasha1985 Just Joined Registered Posts: 1
    Hey!

    There seems to be lots of different answers flying around!! Which is good as they'll lower the pass rate!! The closing stock i was unsure on but used a figure of 41000 and my net profit wasn't 100,000 which meant that i carried the wrong figure through to appropration, but felt i dealt with the questions fine! Im sure i have been told that errors aren't accumulative.. i hope so anyhow!! With regards to the question asking you to create a provision for doubtful debts of 5%... This is different to writing of a bad debt. Creating a provision for doubtful debts is an estimate of the amount you feel is unrecoverable, therefore you debit the doubtful debts: adjustment account, carried through to the P&L as an expense and Credit the provision for doubful debts, which carries through to the balance sheet. If you were asked to write off a bad debt you would debit bad debts and credit sales ledger control, and then work out a provision on the new debtor figure. I hope this helps!
  • Andrea
    Andrea Settling In Nicely Registered Posts: 15
    Hey!

    There seems to be lots of different answers flying around!! Which is good as they'll lower the pass rate!! The closing stock i was unsure on but used a figure of 41000 and my net profit wasn't 100,000 which meant that i carried the wrong figure through to appropration, but felt i dealt with the questions fine! Im sure i have been told that errors aren't accumulative.. i hope so anyhow!! With regards to the question asking you to create a provision for doubtful debts of 5%... This is different to writing of a bad debt. Creating a provision for doubtful debts is an estimate of the amount you feel is unrecoverable, therefore you debit the doubtful debts: adjustment account, carried through to the P&L as an expense and Credit the provision for doubful debts, which carries through to the balance sheet. If you were asked to write off a bad debt you would debit bad debts and credit sales ledger control, and then work out a provision on the new debtor figure. I hope this helps!

    Thats exactly what I done. You know talking about the exam & others peoples answers is really bad for us....just makes us worry :lol:
  • andrewtdk
    andrewtdk Well-Known Registered Posts: 150
    yea i agree with the last 2 posts, you dont do anything with slca as if you do it wouldnt reconcile to the individual accounts and as for stock i think it depends when the items where sold and it didnt give an exact date in the exam. May be wrong but i thought my bad debts was 745 and i checked it several times but may have done something wrong. hope i got the first tb right tho as i got it to balance but dont know if i was the same figure as the ones mensioned before my vat was also 1850 not 1800 keep finding more things i may have done wrong ha ha.
  • katieh
    katieh Feels At Home Registered Posts: 25
    Well I did get a decimal but I must have missed the class were they were told it was wrong to have 1. I can't see it matters as long as i carried my mistake through. I got my appropriation account to a nil balance after splitting the profit!!!! Surely they can only mark me down on the error i made and not all of it
  • blobbyh
    blobbyh Font Of All Knowledge Registered Posts: 2,415
    katieh wrote: »
    Well I did get a decimal but I must have missed the class were they were told it was wrong to have 1. I can't see it matters as long as i carried my mistake through. I got my appropriation account to a nil balance after splitting the profit!!!! Surely they can only mark me down on the error i made and not all of it

    I wouldn't worry too much about having a decimal Katie, I too had one when I did FRA in June 2006. You're correct about carrying the mistake through - you'll only be marked down once for the decimal error and as long as your overall theory is generally sound there should be few other problems.
  • katieh
    katieh Feels At Home Registered Posts: 25
    cheers blobbyh not spoke to u in a while:001_smile:
  • matt
    matt New Member Registered Posts: 10
    Was tipex not allowed?

    I cant remember seeing that
  • DAW1986
    DAW1986 Settling In Nicely Registered Posts: 24
    During the PLB Central assessment we were told by the invidulators that it wasnt allowed but we queried it because we had always been told it was allowed, and they told us use in moderation, but on the FRA central this year nothing was said to us by the invidulators, so i am going to assume its use in moderation, and if i fail because i have used tipex then i will complain to the assessment centre because i wasnt informed that it wasnt allowed, and there was nothin on the front of the paper that i can recall seeing
  • sebastianforbes
    sebastianforbes Well-Known Registered Posts: 172
    i don't know if it is common knowledge yet...

    but when i sat my ecr and fra at salisbury college, i was told that only external invigilators are allowed.

    this means that they don't study aat or finance, and therefore they don't know what they are talking about !

    they can only (legimately) confirm what is printed on the front of the exam sheet.

    i was disappointed to see invigilators making reference to mobile phone signs which applied to other examination boards. i was so tempted to correct them and remind them that this was an aat examination under aat guidelines.

    the same applies to tippex !!!
  • matt
    matt New Member Registered Posts: 10
    Tipex

    I just rang the AAT who stated that we wont get penalised so thats good news guys.

    Does anybody know what day we get the results?Cant see a date online as yet
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