FRA DEC 04 EXAM

I managed to record most of my answers which I've listed below if people want to cross check with their own.<BR>Having looked through the various messages posted, there seem to be a few common points surfacing. The vat on admin expenses should have been netted (I think) and the vat posted to the Vat In account (reducing the amount owed to Customs & Excise). The knock on effect being it reduces the Vat showing as a Liability in the BS. It also accounts for why people have a 50p showing on their figures as they would have debited £49 too much for Admin Exps in the P & L. This means £49 less profit and a resultant odd number that would have meant a net profit of £103,201 brought down to the Appropriation account (shared equally you get a 50p ending).<BR>Stock should have remained at 1940 (SSAP 9)Stocks refers (lower of cost and net realisable value). <BR>People shouldn't worry if their various balances didn't agree, especially if they opened up a suspense account and showed their workings as they give credit for initiative and good accounting practice. <BR>Anyway here are my answers:<BR><BR>1.1 Capital 17,610.<BR>1.2 Sales 49,400.<BR>1.3 Purchases 11,120.<BR>1.4 Materials 13,720.<BR>1.5 Deprec (P & L Yearly Exp 3,350) (Revised Accum Deprec 8,950).<BR>1.6 Travel Exps 2,515.<BR>1.7 Rent 2,500.<BR>1.8 Stock 1,940 (SSAP 9)<BR>1.9 TB Balancing Figure 80,160.<BR>1.10 Date of Purchase, Cost, Serial No, Expected Life, Residual Value, Method of Depreciation.<BR>(i) Shows history of Acquisitions/Disposals.<BR>(ii) Shows information regarding depreciation.<BR>(iii) Info re Manufacturers for Customs & Excise (Vat) & Insurance purposes.<BR>2.1 Dr Accountancy Fees 1900/Cr Accruals 1900.<BR> Dr Bad debts 795/Cr Prov for Doubtful Debts 795.<BR> Dr Admin Exps 280 & Dr Vat Input 49/Cr Selling Exps 329.<BR> Dr Creditors 940/Cr Purchases 800 & Cr Vat Output 140.<BR>2.2 ETB Adjustment Column Bals 3,964.<BR> Net Profit 103,250.<BR> P & L Totals 520,380.<BR> BS Totals 264,316.<BR>2.4 Profit Share 51,625 each.<BR> Current a/c bals c/d (Henry 55,225) (James 55,825).<BR>2.5 BS Totals 211,050.<BR>2.6 Goodwill 110,000 each.<BR> Goodwill Debits (Harry 88,000, James 88,000, Charles 44,000)<BR> Cap A/c bals c/d (Harry 72,000, James 72,000, Charles 56,000).