*** F3 December 2012 Exam *** Instant Poll and comments***

wao
very interesting but a bit challenging.
on the whole, llllllllllllllllllllllllllllll

I was pretty flabbergasted that some of the questions are very difficult and nerve racking. Totally diffrerent from pilot paper questions. I didnt have ample time to attempt all questions. I left about 7 questions unattempted and shaded the answers blindly. I should say this paper is a total disaster for me. On the contrary,F1 paper this term is easier, since it is always perceived as the hardest among F1, 2, 3.

As always, it is hard when not prepared, and easy or at least OK when prepared! But in general it was not hard if enough practice was done in advance!

what’s the point of publishing such a useless pilot paper in the first place !!?

Please, anybody answer (if aware of) when the result is going to be announced?!

hey guys quick question, did we have to show our workings ?

The questions were fairly spread across the syllabus, however two hours were not enough to answer such detailed questions, therefore you ended up guessing quite a few.

I agree that there wasn’t enough time to complete the paper properly. I finished it but didn’t have enough time to double check my workings. Bit of a contrast to the F1 paper where there were hardly any questions that required calculations and was finished within an hour. Think they need to consider revising the number of questions on each paper.

slaughterofsoul i do believe that the answer for ur question is A. 800.

There’s a decrease in the allowance for receivables from the previous year, and also that by 200. A decrease in allowance for receivables indicates a credit to the income statement.

Allowance for receivables in the current year is 2300 and previous year is 2500. So a decrease of 200.

Next is the irrecoverable debts of 800 and also 550, a total of 1350. Irrecoverable debts is a CHARGE to the income statement.

And lastly, the recovered irrecoverable debts of 350, indicates a CREDIT to the income statement.

So, the question asked the amount that will be charged, so since we have a charge of 1350, a credit of 350 and also 200. so, (-1350) + 350 +200 = (-800)

so 800 will be charged as EXPENSE to the income statement…

Hi All – if you live in the East Midlands, have you heard about LiONBROOK Business School? http://www.lionbrook.com

Hi,i’d say that f3 exam was’nt fairly made in my point of view.1 dat was more focused on just on topic(L companies). 2 atleast 50 percent Question should had fair standard coz these are fundamental module, of course most of us new to accounts.On other hand f1 and f2 was fairly examined with a proportion of easy question.

Hi slaughterofsoul
Here is the solution to your question:

To find:charge to the income statement for irrecoverable and doubtful debts(IDE)

Receivables at the beginning of the year=87,000(ignore this amount because it a balance sheet item)
Allowance for receivables at the beginning of the year=$2500(it will on the credit side in allowance for receivable account)
Two specific debts written off (irrecoverable debts)=800+550=$1350
(This amount will be shown on the debit side of the irrecoverable and doubtful debt account),secondly(last year this amount was already included in $2500 as doubtful debt but our closing provision is already adjusted so no need to make any adjustment in provision for receivable accoünt,just straight away charge it as a bad debt expense in irrecoverable and doubtful debt account)

Debt recovered =$350
(This amount will be shown on credit side of irrecoverable and doubtful debt account)
(last year this amount was already included in $2500 as doubtful debt but our closing provision is already adjusted so no need to make any adjustment in provision for receivable account,just straight away show it a decrease in expense on the credit side in irrecoverable and doubtful debt account)

Closing provision for doubtful debt=$2300
(There is decrease in provision by $200 i.e $2500-2300and will be shown on credit side of Irrecoverable and doubtful debt account.e decrease in expense)
(Remember the amount $2300 is already adjusted i.e it will not include bad debt amount of $800 and $350 and debt recovered amount $350 so we no need to adjust this)
NOW:in Irrecoverable and doubtful debt account:
Irrecoverable debts =800+350= 1350(debit side)
LESS:debts recovered= (350)(Credit side)
LESS:Decrease in allowance for receivables= (200)(Credit side)
Total charge= 800(this amount will be charge to the income statement)
closing receivables =$90,000(ignore this amount because it is a balance sheet item)