- This topic has 1 reply, 2 voices, and was last updated 2 years ago by
.
- Posts
Sir in F3 BPP kit there are two questions in chapter incomplete records both asking for purchases to be found out through T account but in the answer sheet I was a bit confused.
In the first question the examiner found purchases through payable T account and in the other question he found the answer by making purchase t account.
So how can we decide that which Y account to make to find out a particular missing value bcoz examiner is finding purchases through making two different t accounts.
For reference question number is 20.4 and 20.10.
I don’t know which edition of the Revision Kit you are using, but in both the current edition and the previous years edition then 20.4 is not asking for purchases but is asking for sales.
In both questions you are given the opening and closing balances on receivables (in the case of 20.4) and on payables (in the case of 20.10).
So for 20.4 the answer has written up the total receivables account (i.e. receivables control account) and for 20.10 the answer has written up the total payables account (i.e. payables control account). In both cases the required figure is the missing figure to make the account balance. (In exactly the same way as I do this in my free lectures on control accounts.)
The answer to 20.10 has mistakenly headed up the t-account as ‘purchases control account’. It is a typing mistake and it should clearly be headed up ‘payables control account’.
(You cannot ever be required to produce a t-account in the exam. It is just for your own workings but for this sort of question doing a quick t-account on the scrap paper is the most efficient way of arriving at the answer.)
- You must be logged in to reply to this topic.