# Help needed. Started Level 3 and struggling with FSTP. LONG POST

Registered Posts: 2
edited November 2016
I passed all AAT Level 2 exams fist time but this level seems to be a lot harder
Thank you for any help

1. The totals recoded in the cash book for the year ended 31 March 20X7 were:

Receipts - 331,296
Payments - 327, 652

You are also told that the bank statement is showing interest received of 75 which has not been recorded in the cash book. There are no other year end adjustements to be made.

a) What will be the opening balance in the cash book as at 1 April 20X7?

2. You have the following information about events on 1 April 20X6:

* The business was not registered for VAT
* The sole trader transferred 8000 of his own money into the busness bank account
* 3200 was paid from the trader's personal bank account for a business vehicle
* Goods for resale by the business costing 900 were purchased using the business bank account

a) Complete the capital account as at 1 April 20X6 , showing clearly the balance carried down

After a year of steady trading, you have the following information for the period ended 31 March 20X7:

* Total purchases were 38,900
* Half of the purchases were made on credit
* Total inventory was 3540

b) Calculate the value of the cost of goods sold for the year ended 31 March 20X7

A gross sales margin of 35% was achieved

c) Calculate the value of sales for the year ended 31 March 20X7

The trade payable records have been lost following a computer problem.

d)Complete the following statements:

The closing trade payable balances can be estimated by adding up the balances on the ? statement as at 31 March 20X7.
I would expect this figure to be around …?

The trader receives a bank statement at the year-end. This is reconciled to the cash book but the two balances are still different due to some recent payments in the cash book that are not yet showing on the bank statement.

e) Which figure should be used when prepering financial statement:

- The balance in the cash book
- Tha balance in the cash book with a furter deduction for the payment not yet on the bank statement
- The balance on the bank statement

3. You have the following information:

The partners are Sam and Terry
Riva was addmitted to the partnership on 1 April 20X7 when she introduced 48,000 to the partnership bank account.

Profit share:
Riva Sam Terry
Effective until 31 March 20X7 - 60% 40%
Effective from 1 April 20X7 30% 45% 25%

Goodwill was valued at 78,000 on 31 March 20X7. It is to be introduced into the accounting records on 31 March and then eliminated on 1 April.

a) Prepare the capital account for Riva, the new partner, showing clearly balance carried down on 1 April 20X7

b) Which TREE of the following items are likely to be contained in a partnership agreement?

Partnership appropriation account
Interest rate on the bank overdraft
Full name of each partner
Amount of cash contributed by each partner
Details of any restrictions on partner drawings
Employee salary details

You are now working on the accounting records of a different partnership business.

* The financial year ends on 31 March
* The partners throughout the year were Asma, Ben and Chris
* The partnership agreement was changed on 1 January 20X7
* Ben and Chris each introduced a further 15,000 capital into the bank account on 1 January 20X7
* Goodwill was valued at 120,000 on 1 January
* There was no interest on drawings

Asma Ben Chris
Profit share, effective until 31 December 20X6 50% 25% 25%
Profit share, effective from 1 January 20X7 30% 35% 35%
Capital account balances at 1 April 20X6 75 000 37 500 37 500
Current account balances at 1 April 20X6 1740 cr 500 cr 3900 cr
Drawings for the year ended 31 March 20X7 6500 each 53 000 59 000
month

The appropriation account for the year ended 31 March 20X7 has already been prepered by the accountant.

Partnership appropriation account for the year ended 31 March 20X7

1 April X6 - 1 January X7 - Total
31 December X6 31 march X7

- Profit for appropriation 150 000 50 000 200 000
- Salaries:
* Asma 31 500 0 31 500
* Ben 24 000 8000 32 000
* Chris 27 000 9000 36 000

- Interest on capital:
* Asma 2250 750 3000
* Ben 1125 375 1500
* Chris
1125 375 1500
- Profit available for distribution 63 000 31 500 94 500

- Profit share:
* Asma 31 500 9450 40 950
* Ben 15 750 11 025 26 775
* Chris 15 750 11 025 26 775
Total profit distributed 63 000 31 500 94 500

c) Prepare the current accounts for the partners for the year ended 31 March 20X7. Show clearly the balances carried down.

4. You are preparing the statement of financial position for the Onyx partnership as at 31 March 20X7.

The partners are Jon and Pat.

All the necessary year end adjustments have been made, except for the transfer of 1200 profit to the current account of the partners. Partners share profits and losses in the ratio 1:3 with Pat taking the larger share.

a) Calculate the balance of each partner's current account after sharing the profit. Indicate whether the balance are Dr or Cr by writing either word in the appropriate field

Balance Debit/Credit

Current account Jon
Current account Pat