Just done a assignment on day books and memorandum accounts, I have had it marked, and got one question wrong, can not for my life fathom it out. I had the normal accounts to fill in i.e memorandum accounts, cash received book and cash paid book. The question I got wrong is as follows. A debtor paid £4000 cash against their account, so I debited the cash received book and credited the debtors account, got this marked as right, nevertheless I also should have put it in the cash paid book why? I thought it was one debit and one credit transaction. Slightly confused now. Kind Regards. Sue
at first glance I'm with you although I'm sure that it's me rather than your tutor that must have missed something.
Goods were originally sold on credit so
Cr Sales Dr Debtors
Debtor pays up.
Cr Debtors Dr Bank
Simples...
The only slight complication that I can see is if VAT gets thrown into the equation.
What happened about that question from last week about revaluation reserves?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
There was no VAT involved, I still feel 100% right on this assignment, as for the revaluation reserve question, I am still waiting for it to be marked, am in a bit of a conflict at the moment, my tutor is taking a hell of time answering my emails, so I have am taking the revaluation reserve assignment to work tomorrow for my boss to look at. Must say I am not impressed with the service I am getting via home learning, looks like I will have to do this qualification on my own. Thanks for your reply. Kind Regards. Sue
I suspect what you haven't done is adjusted the debtor control account (the memorandum account), you appear to have only made the single DR cash received and Cr the debtors personal account, to clear it down. There has been no alteration of the Control (memorandum) account.
May not be the error but it is a possibility.
HTH
Bill
-- Edited by Wella on Monday 18th of July 2011 06:32:56 PM
Has the tutor said anything yet to make you believe that they are a trained bookkeeper or accountant rather than a general tutor who handles several different subjects by the book?
I'm thinking that your going to be talking to us a lot on here over the next few months... Which I don't mind. Always happy to have a chin wag.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
No I hav'nt gone with HLC, would not touch them with a barge pole. Bill this assignment was just to write up the day books and the respective memorandum ledger accounts. Accounts I had to use were the Purchase and Sales Day books, Sales and Purchase ledgers and cash received and cash paid books. Kind Regards. Sue
I see, then I do not see why the cash paid book is involved at all, in that particular question, surely that book relates to purchases (for me it's a terminology thing, as I never used seperate cash books).
