I'm struggling with it to, I get how they work but the question in the practice is very hard to understand what they are after and so far I've had 2 different answers, one off the AAT site and one off my training provider.
Question
You are working on the final accounts of a business for the year ended 31 March 20X1. In this task, you can ignore VAT.
You have the following information:
Balances as at: 1 April 20X0 £ Accrual for administration expenses 790 Prepayment for selling expenses 375
The bank summary for the year shows payments for administration expenses of £6190. Included in this figure is £1800 for the quarter ended 31 May 20X1.
(a) Prepare the administration expenses account for the year ended 31 March 20X1 and close it off by showing the transfer to the profit and loss account
Given answer
Section 2 Extending the trial balance using accounting adjustments
Task 2.1
(a)
Administration expenses £ £ Bank 6190 Balance b/d 790 Balance c/d 1200 Profit and loss account 4200 6190 6190
(b)
Selling expenses £ £ 1/4 Bal b/d 375 31/3 Profit and loss account 9100 31/3 Bank 7900 31/3 Bal c/d 825 9100 9100
Yeah I am just like you. I get how to work them out and the whole point of them. Its the questions that puzzle me. They seem to put to many issues in a question for the student to solve, and I end up really frustrated.
Im studying with Kaplan, who are you with? They are really good, and helpful when contacting them. But I still cant get it to sink in.
And yes that is one of the questions I am stuggling with.
Take care, and if it sinks in your end let me know!
