Help needed - ETB

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
Hi there

Can anyone help me with this query please - I am doing an ETB for the Southtown Supplies exercise in the Osbourne workbook - the bit I am stuck on is:

"Stock was valued at £60,000; this figure excludes goods which were damaged by a burst water pipe and have been scrapped (no sale proceeds); Wyvern Insurance has agreed to cover the loss of £500 incurred in writing of the goods".

What entries do I make in the adjustments column? Is it:
Cr - Stock £500
Dr - Insurance Claims £500 - OR have I got this totally wrong?

Would be really grateful if someone could explain please?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help needed - ETB

    Hi

    I don't have the Osborne book (I use FTC), but my tutor at college emailed all the answers from the Osbourne book, to all of her students.

    I have found the answer for the ETB for Southtown Supplies and it has been calculated as:

    CR purchases £500
    DR Insurance claim £500

    They calculated the balance for purchases (P&L) at £279,500
    and the Insurance claim (Balance sheet) £500

    Hope this helps

    Carole

    If you need any more answers let me know
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help needed - ETB

    Sorry..

    I also meant to tell you that the closing stock figure has not been adjusted and remains at £60,000.

    I guess this is because (as you stated) they had already excluded the damaged stock from this figure and as such, had already adjusted for it, by not counting it in the final sock count.

    Hope this helps

    Carole
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help needed - ETB

    Thats great, thanks so much for your help.

    Would it be possible for you to e-mail the answers your tutor gave you please? Unfortunately our tutor isnt that helpful!

    If so i will forward my e-mail address.

    Thanks again!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help needed - ETB

    No problem.

    Let me have your email address and I shall email all the answers to you.

    Good luck

    Carole

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