Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › texttiles wholesalers question
- This topic has 5 replies, 2 voices, and was last updated 8 years ago by Ken Garrett.
- AuthorPosts
- June 1, 2016 at 3:05 pm #318636
Sir , question textile wholesalers
part b how to find cutoff error how compare and answer?
thank you in advanceJune 1, 2016 at 4:47 pm #318680Where would I find that question? Which exam?
June 2, 2016 at 9:11 am #318833bpp rev kit questionnumber 119
June 2, 2016 at 3:18 pm #318890If cut-off is correct, all inventory in closing stock will have either been invoiced or accrued for. Similarly anything sold must not be in inventory.
1 Fine. In stock and in purchases
2 Not ok. In creditors and also accrued.
3 Fine. Accrued for
4 Not fine. In stock but neither in creditors nor accrued.
5 Not OK. Not in stock at y/e as received afterwards, but is in creditors
6 Not OK. Not in stock at y/e as received afterwards, but accrued for.
7 All fine – not in stock and neither accrued nor in creditors.June 4, 2016 at 7:05 pm #318835Sir , answer is 2,4,5,6
part b question how to find cutoff error how compare and answer?. You attended the inventory count at the company’s year-end of
Thursday 31 October 20X6. The company does not maintain book inventory records, and previous years’ audits
have revealed problems with purchases cut-off.
Your audit procedures on purchases cut-off, which started from the goods received note (GRN), have revealed the
following results:
On purchase In purchase
Date of GRN Supplier’s Invoice ledger before accruals at
GRN Number Invoice No value year end year end
$
1 28.10.X6 1324 6254 4,642 Yes No
2 29.10.X6 1327 1372 5,164 Yes Yes
3 30.10.X6 1331 9515 7,893 No Yes
4 31.10.X6 1335 4763 9,624 No No
5 1.11.X6 1340 5624 8,243 Yes No
6 4.11.X6 1345 9695 6,389 No Yes
7 5.11.X6 1350 2865 7,124 No No
Assume that goods received before the year-end are in inventories at the year-end, and goods received after the
year-end are not in inventories at the year-end.
A purchase accrual is included in payables at the year-end for goods received before the year-end when the
purchase invoice has not been posted to the trade payables ledger before the year-end.June 4, 2016 at 7:47 pm #319438I’ve answered this.
- AuthorPosts
- The topic ‘texttiles wholesalers question’ is closed to new replies.