FRA question

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
My NP seems to be £700 out to everyone (for 2x£350 for the SLCA adj) but this is how I saw it<BR><BR>WAS entered<BR><BR>SLCA 2,000<BR>VAT 350 <BR>Sales 2,350<BR><BR>SHOULD have been<BR> <BR>SLCA 2,350<BR>VAT 350 <BR>Sales 2,000<BR><BR>Would you not just Dr SLCA and Cr Sales????<BR>

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    Me too! You're not alone.<BR><BR>Roz
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    Dr Sales 350 Cr Suspense 350<BR>Dr Sales ledger control 350 Cr Suspense 350
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    sales is a cr balance so you need to dr it to adjust for the 350
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    But they never said anything had gone to suspense, they said it was posted<BR><BR>SLCA 2,000 <BR>VAT 350 <BR>Sales 2,350 <BR><BR>Where nothing goes to suspense???
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    <br><br><< <i>sales is a cr balance so you need to dr it to adjust for the 350</i> >><br><br><BR><BR>Yes, against the SLCA account, as this was understated by £350 and Sales overstated by £350.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    I did look at it for a few minutes as it was a coinsidence that the bal on the suspence account was the same as two lots of the VAT, but nowhere in that entry should suspense be used, I deal with this kind of thing day in day out. Did AAT stick it in on purpose?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    Sales was a credit balance of 2350. You needed to decrease this by 350. To decrease a credit balance, you need to debit that account.<BR><BR>Same with the SLCA.<BR><BR>Net effect:<BR>Dr Sales 350 <BR>Dr Sales ledger control 350<BR>Cr Suspense 3700
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    <br><br><< <i>Sales was a credit balance of 2350. You needed to decrease this by 350. To decrease a credit balance, you need to debit that account.<BR><BR>Same with the SLCA.<BR><BR>Net effect:<BR>Dr Sales 350 <BR>Dr Sales ledger control 350<BR>Cr Suspense 3700</i> >><br><br><BR><BR>Except with the SLCA you need to increase a debit balance, which is a debit entry as above
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    No worries, just realised the Dr side of the actually posted accounts amount to 700, bugger. Oh well, can only get one wrong mark.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    Yeah, I shouldn't think it will make much difference
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    Looking at everything else I should get it all right. Wahoo! Did everyone get Goodwill Acc<BR><BR>Dr<BR>40,000<BR>30,000<BR>30,000<BR><BR>Cr<BR>50,000<BR>50,000
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    Yeah, for me that was the only bit of the exam that didn't send me into a wild panic!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FRA question

    I assumed that the errors had been entered into suspense to balance accounts, which is why there was a suspense of £9,200 to clear and so the £700 went back to suspense and the purchase of car journal cleared remainder of suspense (£8,500)

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