FTC Practice Sim - Trial Balance.

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Iâ??m having difficulty with the FTC Distance Learning â?? Unit 3 Practice Simulation, below is what I have done so far, but I think it is not quite right and I canâ??t figure out why.<BR><BR><b>DR</b> --- 3,276.88 --- Administration Expenses<BR><b>CR</b> --- 3,244.51 --- Bad Debts<BR><b>DR</b> --- 6,336.13 --- Bank<BR><b>DR</b> --- 1,800.00 --- Business Rates<BR><b>CR</b> --- 46,745.76 --- Capital<BR><b>DR</b> --- 25,219.05 --- Fixed Assets<BR><b>CR</b> --- 4,003.51 --- Inland Revenue<BR><b>DR</b> --- 930.00 --- Insurance<BR><b>CR</b> --- 1,275.00 --- Leasing Costs<BR><b>DR</b> --- 134.51 --- Petty Cash<BR><b>DR</b> --- 64,016.83 --- Purchases<BR><b>CR</b> --- 21,697.62 --- Purchase Ledger Control Account<BR><b>CR</b> --- 1,125.31 --- Purchase Returns<BR><b>DR</b> --- 35,211.81 --- Salaries Expense<BR><b>CR</b> --- 95,324.68 --- Sales<BR><b>DR</b> --- 2,006.81 --- Sales and Distribution Expense<BR><b>DR</b> --- 26,710.61 --- Sales Ledger Control<BR><b>DR</b> --- 1,327.44 --- Sales Returns<BR><b>DR</b> --- 7,270.00 --- Stock<BR><b>CR</b> --- 3,995.20 --- VAT Control (Credit Balance)<BR><BR>This gives me a <b>DR</b> of 174,240.07 and a <b>CR</b> of 177,411.59 leaving a difference of 3171.52.<BR><BR>Now Iâ??m sure it is staring me in the face but I just canâ??t see it can any one explain what Iâ??m doing wrong, what Iâ??m posting to the wrong side.<BR><BR>I know I have to use the suspense account but from what I can gather from the journals Iâ??ve done, this should only have 3,400.00 in it.<BR><BR>Any help really needed and appreciated.<BR><BR>Thanks<BR><BR>Nick<BR>

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    Your bad debts AND leasing costs need to be DEBIT i think Nick<BR><BR>Let me know<BR><BR>Luv Sarah x
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    Hi.<BR><BR>Bad Debts is an expense so should be a debit.<BR><BR>Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    I AGREE WITH THE ABOVE BAD DEBTS ARE AN EXPENSE SO SHOULD BE DR
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    OK, I have moved the Bad Debts and Leasing Costs to <b>DR</b> and now have a difference of 5867.50DR<BR><BR>Which still does not seem right to me.<BR><BR>Nick
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    Are all the figures correct?<BR><BR>Have you made all relevant entries to the control accounts, including bad debt?<BR><BR>Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    Hi Scott,<BR><BR>I have checked and double checked.<BR><BR>The only possible error could be the journals I have done.<BR><BR>I have done two:<BR><BR>The First was to correct an incorrect entry. A cheque was paid in for 3126.33 and entered in to the CB as 3216.33 so I <b>debited</b> the CB £90 and <b>credited</b> the PLCA £90. So I added £90 to the Bank to correct the CB error. The PLCA already included this correction from the ledger.<BR><BR>The other was a bad debt one, on this one I <b>debited</b> 1233.75 to the bad debt account and <b>credited</b> 1233.75 to the sales account, though as Sales is a <b>credit</b> and bad debts is a <b>debit</b> in the trial balance this would not have a great effect as they cancel each other out. It is possible that I have done something wrong in the journals.<BR><BR>Now it is known that there is an error in the trial balance because the next question in the â??simâ?? is to correct this error and clear the suspense account but looking at this there should only be £3400 in the suspense a/c because the first error was the purchase returns account being debited 200 instead of it being credited this was corrected by <b>DR</b> the suspense account 400 and <b>CR</b> the purchase returns account 400. The second was a missed credit of 3000.00 to the capital account which was corrected with <b>DR</b> the suspense account 3000 and <b>CR</b> the capital account 3000.00.<BR><BR>And having done this it is still out.<BR><BR>Gonna be a long night ;o)<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    Nick,<BR><BR>I have e-mailed you!!<BR><BR>Amanda
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FTC Practice Sim - Trial Balance.

    Many thanks all of you, especially Amanda <img src="i/expressions/face-icon-small-wink.gif" border="0"><BR><BR>Finally got there, the problem was a lack of observation. When I first did the journals I did the Bad debt one to the SLCA, then in one of my previous posts some one suggested that it should go to the sales account instead. I made the necessary adjustments in the journal but left the 1,233.75 on the SLCA in the TB, then when I realised it should actually be the SLCA I made the adjustment again.<BR><BR>So to cut a very long story to just a long one <img src="i/expressions/face-icon-small-smile.gif" border="0"> it was the adjustment to the SLCA I made right at the beginning. I got it right first time then totally screwed it.<BR><BR>Hopefully it will sink in. It's been a very long week!<BR><BR>Thanks again all.<BR><BR>Nick

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