FRA EXAM

FRA EXAM

Step 1 :bring down any carried forward balances from prior period, people always miss these.<BR>Step 2: Know what goes into your debtors and creditors account, ie discounts received and discounts allowed, payment to creditors, receipts from bank, bad debit written off.<BR>Step 3: balance down your t accounts. The balancing figure will be your sales and purchase figures.<BR><BR>Stock: From working out the sales and purchases figures, you should be provided with the opening stock balance. For instance if the questions states that they want to achieve 30% gross margin. This means that sales is 100%, costs of sales is 70% and profit is 30%.<BR><BR>Sales 100%<BR><BR>Cost of sales <BR><BR>opening stock<BR>purchases<BR>closing stock (balancing figure)<BR> ________<BR>profit<BR><BR>If you know your sales are £100.00<BR><BR>opening stock £20.00<BR>Purchases £40.00<BR>Closing stock £10.00 (balancing figure)<BR> ______<BR><BR> £70.00<BR>Profit £30.00<BR><BR><BR>or total cost of sales is £100/100%x70%=£70.00<BR><BR><BR>with drawings, if you draw a t account of the cash or bank account. list all the entries you would expect, on left balance carried down, sales receipts, proceeds from assets and on the right expenses, wages, creditors payments, purchases and the closing balance if its a debit balance, the drawings entry should be a balancing entry.

FRA EXAM

good luck to all taking the FRA, i was lucky enough to get it out of the way in december.<BR>todays was hard work although talking to some technician students they had a really hard time with their paper. cant wait for next year.....