The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> Book-keeping Training, Qualifications and Professional Bodies -> Quick question for AAT....
Post Info TOPIC: Quick question for AAT....
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Quick question for AAT....
Permalink Closed

Hi all,

Im doing the short test 2 for FRA Unit 5 - The extended trial balance.

I can do most of it, but the thing I am stumped on is this:

Carriage of £5144 in included in the trial balance ( I have put this on the debit side)

But on the notes, carriage inwards is £2211 and carriage outwards is £2933. How do I go about recording this? I think I need to create 2 new accounts, carriage inwards and outwards, and then put these entries in again next to carriage in trial balance to balance this? But then where does it go in the profit and loss? Im confused?

Any help would be great, sorry if this doesnt make sense, I just havent come across this type of thing!

Amy



__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

The figure of £5144 is the total of the carriage in and carriage out. I would list them seperately on the trail balance as you say (on the debit side) but do not balance them with the other figure on the credit side! From memory Carriage in is an expence in the Trading A/C (ie before gross profit figure) and carriage out an expence in the P and L.
Hope that helps, one of the more experienced members may confirm this if you are patient. Regards,
Tony.


__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

OOps I mean expenses!!

__________________
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Permalink Closed

Hi tonys, thank you for your reply. So I list the carriages seperatley in the trial balance on the debit side, then add them to the P & L account on the debit side? I just cannot get it all to balance!

I think its time for bed!

Thanks

Amy

__________________
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Permalink Closed

Morning all, can anyone else shed some light on this as I cannot get the damn thing to balance!

Thanks,

Amy

__________________
Rhianrach


Expert

Status: Offline
Posts: 1609
Date:
Permalink Closed

As far as I can see (don't take my word for this just throwing it out there), carriage in would be part of your purchase charges, part of the cost of sale. Carriage out is an overhead. If it was me looking at that (and I'd most likely be bodging it), I would credit carriage with the amount of carriage outward £2933 (assuming that the figure of £5144 is already in as a cost of sale) and then debit overheads/carriage out with the £2933.

Sorry it may not help like I say just throwing an idea out there.

Good luck with it Amy sounds like the sort of trick the AAT like to throw in to things smile


__________________
Steve
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

The way I read your post was that you were given a list of figures to put into a trail balance, it was expected that you would decide if they were a credit or a debit? I take it later in the notes you are informed that the figure of £5144 is carriage inwards of £2211 and carriage outward of £2933? The thing to be carefull of is that you don't enter the figures twice- you have only one debit figure of £5144. I think if it is asking you to do an extended trail balance then maybe they simply want you to put the two figures seperate on the P and L. You know sometimes AAT throw in imformation to confuse you. If you are on a proforma extended trail balance, I can't see the problem as the description column is set up but if I was writing up a P and L myself I would put the two figures in as per my initial post.

Good luck, I am doing FRA myself.

Tony

__________________
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Permalink Closed

Morning Tony,

Yes I have seperated the accounts under the 'trial balance' column so instead of carriage there is carriage inwards (£2211 - debit) and carriage outwards (£2933 - debit) The trial balance bit now balances.

So you wouldn't put anything in the adjustments accounts? My adjustments account balance, its just my P & L and balance sheet, the net profit doesnt balance, its out by £70!

I have listed both carriage inwards and outwards under the P & L as a debit. Maybe its something else I have done wrong? Is so frustrating!! How are you finding it tonys and how far along are you?

Hi Steve, thank you for your advice, so you would put carriage in as an adjustment to purchases?

Thanks all,

Amy

__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

Amy,

Which book and which question are you on. It sounds like you have dealt with problem OK to me maybe you have an error elsewhere is there a £35 figure you have missed or put on wrong side? I have done ECR WSK PET this last exam before I do Technician level.

I am at Kaplan Liverpool doing Diploma route how about you?

Tony

__________________
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Permalink Closed

Hi tonys,

Its short test 2 of FRA. I am distance learning with Premier training - Diploma route. Woudl you have done the short tests?

How are you finding it? I have had a peek at costing unti 6 and it looks hard!

I cannot see the error anywhere, its so frustrating as its not out by much!

Thank you for your help,

Amy

__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

I have not done that short test i don't think! AAT is a challenge are you getting the back up from your trainer? Did you original TB balance and you lost things through the adjustments and P and L postings or did it not balance from day 1?

Tony

__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

Oh yes I didn't enjoy costings but stick in there you will be fine!
Tony

__________________
Rhianrach


Expert

Status: Offline
Posts: 1609
Date:
Permalink Closed

amz27 wrote:


Hi Steve, thank you for your advice, so you would put carriage in as an adjustment to purchases?

Thanks all,

Amy


Firstly I'd be more inclined to listen to Tony  as he is doing the same course as you smile

But yeah carriage inwards in the books I am doing is in the purchases as it is part of the cost of the goods.

 



__________________
Steve
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

Steve and I are saying the same thing that Carriage inwards is cost that is in COS but I think Amy must have got that OK if her her bal is only £70 out?
Tony

__________________
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Permalink Closed

Thanks Steve, I do understand what you're saying!

I am such an idiot, I posted depreciation of £8770 to P & L instead of £8700! So sorry all, but you have made me understand it more!!

So with the journal entry (this is another part of the question), I am going to do the folowing for the carriage:

Dr - Carriage in - £2211
Dr - Carriage out - £2933
Cr - Carriage - £5144

Is this correct?

Thanks again,

Amy



__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

Looks right to me! Well done! Thought it must have been rogue figure or missing figure.
Tony

__________________
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Permalink Closed

Thanks tonys! Its such a relief when you finally get it to balance isnt it!

Thank you again,

Amy

__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

Do you have to show accounts balanced as well? ie you have created two carriage accounts then tranferred the balances  of the accounts to the P and L so they have no bal b/d for next period. Just checking!
Tony

__________________
amz27


Veteran Member

Status: Offline
Posts: 39
Date:
Permalink Closed

Hi tony,

Yes I have put the seperate amounts under the trial balance, under carriage in and carriage out, then I have posted these amounts to the P & L, both under debits, is this right?

Thanks,

Amy

__________________
tonys


Senior Member

Status: Offline
Posts: 226
Date:
Permalink Closed

Yes that is what I would have done.
Happy studying!
Tony

__________________
Wella


Expert

Status: Offline
Posts: 2256
Date:
Permalink Closed

amz27 wrote:

So with the journal entry (this is another part of the question), I am going to do the folowing for the carriage:

Dr - Carriage in - £2211
Dr - Carriage out - £2933
Cr - Carriage - £5144

Is this correct?

Thanks again,

Amy

Amy I haven't followed the whole post but a quick glance at this does not look right, shouldn't the Cr - Carriage - £5144 be either bank, cash or creditor. Someone has supplied the carriage and has either been paid or is still owed the amount.

Bill

 



__________________

 

 
Rhianrach


Expert

Status: Offline
Posts: 1609
Date:
Permalink Closed

Hmmm I thought it was to reduce the carriage account balance to zero so that it could be analyzed and posted in 2 seperate accounts, saying that I got lost a while ago. smile


__________________
Steve
Wella


Expert

Status: Offline
Posts: 2256
Date:
Permalink Closed

Hi Steve

Ignore what I've said. Told you I didn't read the whole post and read the last bit out of context

Bill



-- Edited by Wella on Thursday 13th of May 2010 11:26:01 AM

__________________

 

 
blondie2000


Newbie

Status: Offline
Posts: 2
Date:
Permalink Closed

Hi all, have just been nosey and read through some of the messages in this forum. Wish I hadn't come on here now, cos u have confused me lol.........How can carriage inwards and outwards both be debits when they are the opposite of each other.......???????????

__________________
blondie2000


Newbie

Status: Offline
Posts: 2
Date:
Permalink Closed

It is correct that both of them will be debit....that was something new I learnt today........I think learning accountancy is harder than learning a foreigh language.....think they make it up as they go along lol



__________________
PhilMcTankup


Senior Member

Status: Offline
Posts: 158
Date:
Permalink Closed

Glad that's all sorted, don't forget to put the horse+carriage in the garage..

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> Book-keeping Training, Qualifications and Professional Bodies -> Quick question for AAT....
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About