incomplete records?

incomplete records?

Hi, Trog.<BR><BR>The basic idea is that you must know what goes into the final accounts. That's the test. It also tests your knowledge of 'T' accounts. It might be a good idea to download the December 2005 exam as it includes a great example, and the answers are also available. It works like this:<BR><BR>You'll be given some dat, but there are bits missing. Obviously, you can't complete the accounts without the basics. For example, Task 1.3 in the December exam asked you to calculate the credit purchases. That means you have to know what goes into the purchases 'T' account. The information you've been given tells you that you paid £11,005 from the bank to creditors. The balance sheet information tells you that you started the year owing £1,720 and closed the year owing £1,835, which is the balance carried down. The only figure missing is the actual purchases, which is the balancing figure, £11,120. So, you've found the credit purchases as requested.<BR><BR>Other questions ask you to use the figures you've calculated to discover other information, or to complete the final accounts. They all work basically the same way. The important thing is that you understand where information comes from, goes to, and, most importantly, the various accounting equations. But, really, it's all a matter of logic. The questions tell you what you have to find; you look at what you've got, including any data you've already calculated, and you make up the 'T' accounts etc to match. Any balancing figure is the answer.<BR><BR>Try it. If you get problems, send me an email and 'll try to explain it a bit better.<BR><BR>Mike<BR>

incomplete records?

A pleasure to be of service, ma'am.