[dmorgan246]

Thanks. I have assumed similarly, since no workings were included to indicate otherwise.

[dmorgan246]

@Taxtutor said:
Any numbers that you compute for use within your answer – you need to show the calculation as I have shown in the Study Notes – so that in your example you would start by taking the net income from your Income Tax computation and deducting the gross amount of any gift aid payments and personal pension contributions to compute adjusted net income (ANI).
You would then compute the excess of ANI above the 100,000 income limit to establish the deduction in the PA from which you can then calculate the revised PA

Thanks. Very helpful.

[dmorgan246]

Thanks a great deal, sir.

[dmorgan246]

This is the question:

On 31 January 20X8 a company’s cash book showed a credit balance of $150 on its current account which did not agree with the bank statement balance. In performing the reconciliation the following points came to light.

Not recorded in the cash book:
Bank charges $36
Transfer from deposit account to current account $500

Not recorded on the bank statement:
Unpresented cheques $116
Outstanding lodgements $630

It was also discovered that the bank had debited the company’s account with a cheque for $400 in error.

What was the original balance on the bank statement?

Answer:
Balance per corrected cash book $314
Add unpresented cheques $116
Less outstanding lodgements ($630)
Less error by bank* ($400)
Balance per bank statement= ($600)

[dmorgan246]

@brendacal said:
Hi dmorgan246

You are welcome. What paper are you doing or just finished.

Hi brendacal. I’m doing paper F3.

[dmorgan246]

Thanks Brendacal….

[dmorgan246]

Hi Brendacal my first piece of advice is not to give up. Failure is the biggest part of success.

You have done all the work, so you already know it. Be calm and patient with yourself. I suggest understanding the key concepts and outcome. Do this instead of memorizing the work.

Keep going over the revision kit until you understand were you’re going wrong. Time yourself in the mock exams.

Good luck next time 🙂

[dmorgan246]

Hi. When calculating cash flow from operations, is capital allowance and depreciation both added back to Net Income?

Thanks

[dmorgan246]

Congratulation chebetchigozie.. 🙂

[dmorgan246]

Hi guys. Successfully completed F2 on the first attempt. Thanks for your guidance.

[dmorgan246]

I made the error of $2400/.8 instead of 80. Thanks again.

[dmorgan246]

Thanks a lot Sir.

[dmorgan246]

The $30 is relevant to solving the flexed budget allowance…

[dmorgan246]

Hi Sir,

I need further assistance following on from the above question:

Direct material cost per 1% = $30.

This info is taken from the solution to the above problem. Can you guide me at to how the $30 was derived?

Cheers

[dmorgan246]

I thought the content of the F1 paper was mostly straight forward except for a few questions that required careful analysis but weren’t difficult. I passed on my first attempt. Using the BPP books really supplemented the efforts of the team at Open Tuition. Thanks guys!!

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