Q31 a ii of MarJun 2017 — OpenTuition Forums

DDinh5y ago

Dear Sir Requirement of Q31 a ii of MarJun 2017 is to calculate the over draft at the end of Jan 20X7 I understand that it is necessary to care of inflow, outflow in Jan 20X7 But in the marks scheme, it requires to calculate Inventory balance, AR balance, AP balance as of 31 Jan 20X7 also. Could you please explain the reason why ? Meanwhile the examiner report always to remind the candidate to answer what being asked, other information which is not address the requirement will not be gain any mark. Thank you.

John MoffatTutor5y ago#1

If you managed to calculate the overdraft correctly without calculating the receivables etc. (but I can't imagine how you would) then you would get the 4 marks. The marking scheme is making sure that you would still get some marks if you got part way to the right answer even if you then went wrong and ended up with the wrong answer.

DDinh5y ago#2

Dear Sir, I calculate as bellows: Inflow 288,350 Sale of Nov 20X6 108,350 =40%*270875 Sale of Dec 20X6 180,000 =300000*60% Outflow 347,190 Payable 130,690 =70%*(186700) Interest 70,000 Operating cash 146,500 Opening over draft 240,250 Arising over draft in Jan 20X6 58,840 Closing over draft 299,090 Is it acceptable for 4 marks? Thank you.

John MoffatTutor5y ago#3

Yes - that would be fine :-)