Accruals & prepayments

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kellylpool
kellylpool Registered Posts: 8 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
Is absolutely livid, I was supposed to be sitting CBE FRA today 1 month ahead of schedule. I was 30 mins into the exam and it crashed! Apparently, the server crashed. Exam did come back on with same amount of time left but the answers I had already filled in had disappeared! Exam was aborted, much to my disappointment.

Anyway, a question came up which threw me a little and I would like some guidance as to whether or not the way I answered it was correct.

Q. Y/end 31st March. Accrual for administration expenses £300, figure past through the bank £2200 including £300 for quarter ended 30th April

A.

DR
Bank 2500

Cr
Balance b/d 300
Admin expenses for year 2100
Balance c/d 100

Is this correct? I have only ever practiced with accruals or prepayments separately, I've never actually done a T account which dealt with both.

Kelly

Comments

  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
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    Almost right



    DR
    Bank 2200............................................payment made through the bank

    Cr
    Balance b/d 300 ...................................Accruals balance b/f
    Admin expenses for year 1800 .................to P&L a/c
    Balance c/d 100.....................................Pre-paid carried forward


    if you want an interactive excercises on this pm me your e-mail
  • kellylpool
    kellylpool Registered Posts: 8 New contributor 🐸
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    Thanks for the reply

    Your answer is what I actually meant to type. Why I typed payment through bank 2200 then done, dr bank 2200, i got muddled.

    There were 2 questions on the exam, 1 starting with an accrual and a prepayment and vice versa. Both t accounts I done ended up with balance b/d and balance c/d on the same size so I suspect I'm on the right track.

    Its just that having only dealt with a sole accrual or a sole prepayment, and not both together, it threw me.

    Kelly
  • emma123
    emma123 Registered Posts: 108 Dedicated contributor 🦉
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    the server crashing is my biggest fear when doing CBE's! :(

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