T Accounts Help

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am studying the foundation level of AAT. I have a question which i am stuck on. It is really simple but i just cant think and picture it.<BR><BR>Question:<BR><BR>Let us assume that charlie commences trading, he had £75 Business Cash on hand. When he takes the delivery of Goods on monday morning he pays the delivery driver £50.<BR><BR>Prepare Charlie's T ACCOUNTS<BR>**************************************************************<BR><BR>My Answer:<BR><BR>Charlie's Account DR 75.00<BR>Charlie's Account CR 50.00<BR><BR>Delivey Account DR 50.00<BR><BR>can someone please tell me if i am right or can someone please help me with this question.<BR><BR>Thanks<BR>Ben

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    Yea i have checked twice they are the correct figures.<BR><BR>Mines doesnt balance aswell<BR><BR>i am getting<BR><BR>Dr 168657<BR><BR>Cr 168705<BR><BR>how about you. by the way i put the suspense on the debit side
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    oh ok anywayz thanks once again for today.<BR><BR>ben
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    Depends when the year end is. If the year end was 31st March as well, you would show the expense on the P&L, & have Accruals & Prepayments on the Balance Sheet.<BR><BR>If the cheque was banked on the 31st, you record it as the 31st.<BR><BR>These are covered under F.R.S. 18- the Matching Concept. (This is an intermediate topic!).
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    oh ok. well i will then leave it like this. I will deffinatly let u know what they say.<BR><BR>Thank you so much for your help today i really appreciate it.<BR><BR>before i go i want to quickly ask one thing<BR><BR>when it say prepare a trial balance ending 31 march 2003<BR><BR>and then it says 250 was paid on 2 april 2003 how would you deal with that in a P&L account and Balance sheet<BR><BR>i really get confused. <BR><BR>Also if it has prepare a trial balance ending 31 march 2003<BR><BR>and then it says a cheque was banked at 31 march 2003 at 6pm meaning it would be the following day because the bank closes at 6pm then how would i show that.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    I'm assuming that the stock takers fees are the £350 mentioned in the figures. We can't clear the suspense account without further information!<BR><BR>It doesn't have to balance- perhaps they want to see what suspense amount you arrive at.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    oh ok thanks i corrected my self now. but scott dont we need to clear the suspense account.<BR><BR>could the 4298 be our stock takers fees which were paid on 31 mar 2003 at 6pm<BR><BR>i got 4298 by the differences from the trial balnce
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    TRIAL BALANCE AS AT 31 MARCH 2004 <BR> <BR>
    DR
    CR<BR> <BR>CAPITAL
    41250<BR>CASH
    250 <BR>BANK OVERDRAFT
    2000 <BR>OPENING STOCK
    5207 <BR>PURCHASES
    86500<BR>SALES
    121348<BR>DEBTORS
    9375 <BR>CREDITORS
    6107<BR>MOTOR VEHICLES
    26520 <BR>WAGES
    8125 <BR>RENT AND RATES
    10275 <BR>STATIONERY & PRINTING
    535 <BR>MOTOR EXPENSES
    3345 <BR>INSURANCE
    1275 <BR>DRAWINGS
    9000 <BR>ACCOUNTANCY FEES
    1250 <BR>STOCK TAKES FEES
    350 <BR>LIGHT & HEATING
    2520 <BR>TELEPHONE
    2030 <BR>SUSPENSE ACCOUNT
    100 <BR> <BR><BR>
    168657
    168705<BR><BR>Thats how i got mine<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    You've put the Bank Overdraft on the wrong side.<BR><BR>I also took £250 off Accountancy Fees.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    Dr £166,407<BR><BR>Cr £170,705
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    Hi Ben.<BR><BR>The £75 cash is the owners investment, so that's Debit Cash £75, Credit Capital £75.<BR><BR>He buys goods, so Debit Purchases £50, Credit Cash £50.<BR><BR>Hope this helps, Scotty.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    And are those figures correct- it doesn't balance!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    IT DOESNT SAY SORRY
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    IT DOES SAY IF ITS A CREDIT OR A DEBIT.<BR><BR>THATS WHAT I WAS WOUNDERING RIGHT NOW.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    Is the Suspense amount Debit or Credit?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    Yep, you do it then post it, i will do it in the meantime, we can compare answers.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    Scotty can you please help me with one one question.<BR><BR>QUESTION:<BR><BR>Prepare Trial Balance for 31 Mar 2003:<BR><BR>CAPITAL 41250<BR>CASH 250<BR>BANK OVERDRAFT 2000<BR>OPENING STOCK 5207<BR>PURCHASES 86500<BR>SALES 121348<BR>DEBTORS 9375<BR>CREDITOR 6107<BR>MOTOR VEHICLES 26520<BR>WAGES 8125<BR>RENT AND RATES 10275<BR>STATIONERY & PRINTING 535<BR>MOTOR EXPENSES 3345<BR>INSURANCE 1275<BR>DRAWINGS 9000<BR>ACCOUNTANCY FEES 1250<BR>STOCK TAKES FEES 350<BR>LIGHT & HEATING 2520<BR>TELEPHONE 2030<BR>SUSPENSE ACCOUNT 100<BR><BR>Prepare the trial balance<BR><BR>Also please make the following amendments before preparing the trial balance.<BR><BR>1) Accountancy fees of £250 was paid on 2 Apr 2003<BR>2) Stock Takers Fees were paid on 31 Mar 2003 at 6pm<BR>3) Rent and rates of £10275 were paid before 31 Mar 2003<BR>*********************************************************************<BR><BR>I know its a big question. i am currenty doing the trial balance. shall i post it once i finish?<BR><BR>Ben
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    It just takes practise!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    T Accounts Help

    THANKS SCOTTY.<BR><BR>I WAS WAY OUT OF THE TRACK!<BR>

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