Model answers
AAT Accounting Qualification
NVQ/SVQ
Level 3
Maintaining Financial Records
and Preparing Accounts (FRA)
2003 Standards
December 2008
AAT Accounting Qualification
Diploma pathway
Advanced Certificate
Financial Accounting (FRA)
2003 Standards
Section 1
Task 1.1
Purchases ledger control account
£
Bank
£
161,000
Discounts received
Balance b/f
2,825
Balance c/f
Purchases day-book
24,800
168,025
29,000
192,825
192,825
£
£
Task 1.2
(a)
Rent
Bank
9,800
Balance b/f (accrual)
9,800
(b)
Accruals concept
£(18,095/1.175) = £15,400
OR £(18,095 x 40/47) = £15,400
(b)
Rent for year ended 30 Sept 2008
7,150
Balance c/f (prepayment)
2,000
9,800
Task 1.3
(a)
650
£(15,400 x 17.5%) = £2,695
OR £(18,095 x 7/47) = £2,695
OR £(18,095 - £15,400) = £2,695
2
(c)
VAT
£
£
Bank
13,780
Balance b/f
Purchases day-book
25,025
Sales day-book
General expenses
2,695
Balance c/f
4,159
45,659
£35,000 x 25% = £8,750
(b)
£8,750 + £13,750 = £22,500
Task 1.5
(a)
£19,800 / 1.65 = £12,000
(b)
£12,000
42,119
45,659
Task 1.4
(a)
3,540
3
Task 1.6
Refurb
Trial balance as at 30 September 2008
Dr £
Bank
Cr £
9,264
Capital - Adam
20,000
Capital - Zig
27,000
Current account - Adam
1,300
Current account - Zig
850
Depreciation charge (Task 1.4a)
8,750
Discounts received (Task 1.1)
2,825
Drawings - Adam
20,000
Drawings - Zig
18,000
General expenses (Task 1.3a)
15,400
Payroll expenses
28,500
Prepayments (Task 1.2a)
2,000
Purchases
143,000
Rent (Task 1.2a)
7,150
Sales
240,680
Stock - closing - balance sheet (Task 1.5)
12,000
Stock - closing - profit and loss account (Task 1.5)
12,000
Stock - opening
15,000
Trade creditors (purchases ledger control account)
29,000
Trade debtors (sales ledger control account)
46,250
VAT (Task 1.3c)
4,159
Vehicles - cost
35,000
Vehicles - accumulated depreciation (Task 1.4b)
22,500
Total
360,314
4
360,314
Task 1.7
(a)
Current accounts
Adam £
Zig £
20,000
18,000
Drawings (bank)
Balance b/f
Salaries
Balance c/f
20,000
18,000
Adam £
Zig £
1,300
850
15,000
17,000
3,700
150
20,000
18,000
(b) Two from:
Share of profit/loss
Interest on capital
Goods taken for personal use
Interest on drawings
(c)
It is important to be able to see for each partner separately how much is owed to them by the partnership
(credit balance) or how much they owe the partnership (debit balance).
(d)
The current account records the fluctuating balance between the partner and the business. The capital
account records the partner’s fixed or permanent investment.
5
Section 2
Task 2.1
(a)
£
Total from listing of sales ledger balances
3,652
Adjustment for 1. - add
188
Adjustment for 2. - subtract (2 x £65)
(130)
Adjustment for 3. - add (£328 - £238)
90
Revised sales ledger balance
3,800
Sales ledger control account balance
3,500
Adjustment for 4. - add
300
Revised sales ledger control account balance
3,800
(b)
From:
To:
Sent:
Subject:
AccountingTechnician@Harper&Co.co.uk
AliSayed@Harper&Co.co.uk
3 December 2008
Reconciliation
Thank you for asking me about the reconciliation between the sales ledger and the sales ledger control
account.
The sales ledger contains the individual accounts of customers. Each customer record shows the individual
transactions between the business and the customer. It is not part of the double entry system. The individual
accounts are memoranda accounts.
The sales ledger control account is a summary of the activity in the sales ledger, using the information from
the books of original entry. It is part of the double entry accounting system.
The reason for doing the reconciliation is to identify errors that have taken place either in the sales ledger or
in the sales ledger control account. It helps to check the accuracy of the trade debtors balance in the final
accounts.
6
Task 2.2
Journal
Dr £
(a)
Drawings
500
Travel expenses
(b)
500
Provision for doubtful debts adjustment (P&L)
70
Provision for doubtful debts (BS)
(c)
70
Loan interest
35
Loan interest accrual
(d)
35
Sales ledger control account
300
Purchases
(e)
300
Disposals
1,200
Equipment cost
1,200
Equipment accumulated depreciation
525
Disposals
525
Bank
700
Disposals
700
Workings:
(b)
£350 - £280 = £70
(c)
£3,000 x 8.5% = £255
£255 - £220 =
£35
Cr £
7
Task 2.3
Dave Jones
Extended trial balance as at 30 September 2008
Administration expenses
Advertising
Bank
Capital
Cash
Closing stock
Depreciation charge
Drawings
Equipment at cost
Equipment accumulated
depreciation
Loan
Loan interest
Opening stock
Provision for doubtful debts
Purchases
Sales
Sales ledger control
account
Travel expenses
Provision for doubtful debts
adjustment
Loan interest accrual
Disposals
Net profit
Total
Ledger
balances
Dr £
2,100
2,600
90
2,150
500
19,500
4,800
Adjustments
Cr £
Dr £
875
4,005
700
Cr £
Profit and loss
account
Dr £
Cr £
2,100
2,600
Balance sheet
Dr £
175
4,005
2,150
2,150
90
2,150
500
500
20,000
3,600
1,200
2,600
525
2,075
3,000
220
1,700
3,000
35
280
255
1,700
70
300
28,750
350
28,450
58,000
3,500
58,000
300
5,000
3,800
500
70
70,910
Cr £
70,910
70
1200
35
525+700
3,330
3,330
8
4,500
35
25
20,000
60,175
60,175
29,640
20,000
29,640
Task 2.4
Dave Jones
Profit and loss account for the year ended 30 September 2008
Workings
£
Sales
£
58,000
Opening stock
1,700
Purchases
28,450
Closing stock
(2,150)
Cost of goods sold
(28,000)
Gross profit
30,000
Add: Profit on disposal
25
Less: Expenses
Administration expenses
2,100
Advertising
2,600
Depreciation expense
500
Loan interest
255
Travel expenses
4,500
Provision for doubtful debts adjustment
70
(10,025)
Net profit
20,000
Task 2.5
(a)
Bank
Loan interest accrual
(b)
Fixed assets register
9