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November 29, 2021 at 10:40 am
Hello Please can anyone explain me why we plussed the 200640 + to 32400
if it possible to explain solution in detail
thanks in advance
November 29, 2021 at 8:18 pm
first step:200,640+43,200=243,840 because when you record expense, this expense can be effect in total statement of profit or loss , make negative effect in SOPL
then i should added 43,200 because i found error about motor van account between expense motor van account
second step:after this one , i should calculate Depreciation about motor van
43,200/25%=10,800 per years (straight line)
then 243,840-10,800=233,040 its correct answer
September 20, 2021 at 1:30 pm
Thanks to Allah.
I got 100%
Thanks to you, Mr. John Moffat
February 19, 2021 at 5:52 pm
This practise test was really good
It helped me figure out that I’m still weak in this section of the syllabus but I still have a doubt with some of the questions here
I have a doubt thats conflicting with question 1 and question 3
In question 1 my original answer was actually the correct answer which was about the discount allowed and discount recieved but I switched my answer to the wrong answer because I thought an omission of the petty cash balance from the trial balance will create an imbalance so a suspense account should be created to balance the Trial Balance
Now in question 3 on the other hand I selected the option of the petty cash book balance was omitted from the trial balance and it was apparently correct
Now I was wondering how these two could be the answers like this when it says that in question 1 the omission is not relevant but for question 3 the omission was relevant
Thank you very much again
November 13, 2020 at 7:34 pm
Q1) If the Dr of trial balance was $1920 more than Cr, wouldn’t an omission of dr of petty cash $1920, bring the overstated back to balance with the Cr and solve the problem ? This is what I thought, I don’t understand how I am wrong.
Q3) Please help me understand the last point – Cash2800. I dont at all understand what is being said. Please generously help with break down.
Q5) Why is the last point wrong. Also what did it mean by “the Cash Entry was correctly made”
Q) By cash book you mean the Prime Book ?
This test was very difficult
May 28, 2020 at 2:27 pm
I am confused with Q2, if the cost of the motor van was erroneously recorded as expense, obviously we would add it back to profit amount as it was originally a deduction. But how about the depreciation expense, wasn’t it originally deducted so it is just proper to add it back?
A further clarification is appreciated.
John Moffat says
May 28, 2020 at 4:23 pm
Depreciation will not have been deducted because the van had not been recorded as a van. However there should be deprecation and this will reduce the profit.
January 21, 2020 at 12:03 pm
Are there more practice questions for practice please inform us
January 21, 2020 at 2:45 pm
No (apart obviously from the mock exam that we provide).
The tests are only supposed to be short checks after each chapter. As I say in the introductory lecture, it is essential that you buy a Revision Kit from one of the ACCA approved publishers (BPP and Kaplan) because they are full of exam standard questions for practice and practice is vital to passing the exam.
(If you use the link on most pages of our website you can buy books from BPP at a special discount of 20% 🙂 )
October 2, 2019 at 3:48 pm
for question 1 : Would it be correct if i chose option B (the petty cash balance of $1920 had been omitted from the trial balance) If not, Please explain why as I am not confident enough with the actual answer given.
October 3, 2019 at 7:24 am
No, it would not be correct.
Petty cash is an asset and is therefore a debit balance.
If it is omitted from the trial balance, then the total debits will be too small (and be lower than the total credits).
December 8, 2018 at 4:31 pm
the inventory on 29 june was it closing inventory for 20X6? , What is i am gonna do with this inventory?
Suppose that inventory that received on 29 was value of $500
what is the effect on gross profit?
December 9, 2018 at 9:14 am
The goods were received on 29 June 2006 and were included in the inventory at 30 June 2006 – the question says so. It was quite correct for it to be included.
The problem is that the invoice for them was not recorded until July, which is after the year end. The invoice should have been accrued for, but it had not been. So the profit for 2006 would be higher than it should have been.
November 3, 2017 at 12:38 pm
In Q3, is the 2nd statement wrong because it only mentioned about Cr. Share capital a/c and not mentioned Dr. cash account with 330,000?
Thanks in advance, 🙂
November 3, 2017 at 3:21 pm
No. It is because share capital has been credited with the wrong amount – it should have been credited with 330,000.
(The wording implies that the cash has been debited with the correct amount.)
July 26, 2016 at 11:30 am
How do you correct errors that can not be detected by the trial balance
July 26, 2016 at 4:39 pm
Whether or not errors are detected by the trial balance, they are corrected by double entries.
June 27, 2016 at 1:48 am
In question 3 the petty cash book balance $500 had been omitted from the trial balance.
Why did this affect the trial balance, we forgot to record it in the TB. There is no credit or debit of $500 in TB.
June 27, 2016 at 8:22 am
The trial balance should list all of the balances on the accounts. If a balance is omitted the the trial balance cannot balance.
Have you watched the free lectures on this, because there are similar errors in the example worked through in the lecture?
June 27, 2016 at 8:52 am
Right because the entry of petty cash is debit petty cash and credit cash account, thanks a lot 🙂
June 27, 2016 at 4:36 pm
You are welcome 🙂
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