Hi every one I am trying to teach my self bookkeeping in order to take my manual level 1 on Tuesday and I am working through a work book (from FTC Foulks Lynch A Kaplan Professional company) 2004/05. ISBN 1-84390-527-2.
I am on chapter 7 bank reconciliations and im doing question 26 and I have added up all the debits ant it came to £110585 but on they have worked it out to be £110595. I have looked on the answer page and it has not accounted for this error, am I missing something or is it a typo?
in this instance it's not the study text that's wrong. (wish that I could say the same of the study text for ACCA paper P2 which comes with 19 A4 pages of corrections!).
To a certain extent that figure that your looking at is immaterial as the cashbook is riddled with errors (neither side add up to 110,595).
I think that they've thrown that one in to throw you off the scent. The real issue though is comparing the figures above to the bank statements.
The error with the totals doesn't matter, it's the errors in the figures on which those totals are based that you need to work through.
I've not got your version of the book but I've got the 2008 version (another one that I picked up cheaply from Amazon resellers). Its still question 26 but its now in chapter 8.
Have fun and talk later,
Shaun.
__________________
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.
Im still confused, I have added up the debits and it comes up as £110585 (Dr £10 over) I then have worked out the credits total is £17344 the balance (to get to £110595) should be £93251 not £93521 (a transposition error the 2 and 5 were switched) (Balance CD £270 over)
In the 1st part of the bank rec it shows:
DR CR
Original Balance per cb £93521 Casting Error £270
Correct balance C/D £93251
£93521 £93521
It then does the bank reconciliation agents the banks sheet.
But there is no mention of the £10 error in the Dr side. If Dr = £110585 and Cr = £17344 then the balance cd should be £93241 not £93251. Does this make sense?
Lee
-- Edited by Lee The Rookie on Saturday 12th of November 2011 10:53:52 AM
Sorry for the delayed reply, been off looking at Rabbits at Pets at home all afternoon.
Unfortunately its quite a long question to write out otherwise I would reproduce it here for the other readers.
The totals don't add up but that's just intended to put you off your track. To a large extent the totals don't matter to this question anyway. However, for reference, for the £10 that's giving you issues take a look at the lodgement on the 09/05 for £1,656! (don't worry that you didn't spot it. When you've stared at a question for a long time you very much become number blind seeing what you think is there rather than what is actually there).
The question is riddled with things like that but I've reviewed it and it seems like quite a fair, well presented question similar to some that I've seen in past exams so well worth spending your time getting your head around this one.
Don't worry about getting fixated on the totals. We all do it all of the time. Would hate to estmate the number of hours I've spent working and reworking figures to try them to get them to add up to a total which is incorrect for some totally unrelated reason buried somewhere else in the financial statements.
Hope that's answered the question. If you have any followups just post and I'll get back to you when I can (but it could take up to a day at the moment).
All the best,
Shaun.
__________________
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.
As I'm sure that you've now moved on from this one, the thing that I was hinting at in the previous message re the balancing item that you seem to have missed for the £10 issue was the £1646 recorded in the cashbook rather than £1656 with the bank statement.
You are told in the question that the bank statement is correct (which to be honest I would say is the case with nearly all discrepancies of this type. Main issue with bank statements is likely to be missing items rather than incorrect ones).
I didn't just tell you the answer outright as that wouldn't have helped your study much.
There were lots of other adjustments that need applying but that's the £10 issue.
Keep us all informed as to how the exam goes won't you.
All the best,
Shaun.
__________________
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.
Currently we've got three rabbits. A doe English and two dwarf lop bucks (Sydney, Thumpa and Patch).
Unfortunately we just can't keep away from the adoption centre in there and at the moment I'm trying my hardest to think of reasons not to liberate a third dwarf lop buck... This one looks like a solid black furry brick with legs with a face that looks like it's run repeatedly into a wall. Always comes to the glass when we walk in. Goes up for adoption at 16:00 tomorrow... Might be on it's way back to ours at 16:01!
__________________
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.
Lol.....you're even more of a sucker for a pretty bunny than myself and my daughter!
We have two of each, two buck lops, one doe lionhead cross dutch and one doe full lionhead (who also has that squashed face look). Hotch Potch (he's a harlequin), Thumper (he's the boss) Pixie and Marley. They are all rescue rabbits, but not from Pets at Home. I can't help feeling sorry for those rabbits at Pets at Home.
Are yours all bonded? It took some time to do ours as Thumper and Pixie were already bonded, Hotch Potch had lost his mate a few months ago and Marley was a single. We sent them away to be bonded ...now they all get on llike a house on fire.
Well, this threads gone well and truly off piste! Oh well, been ages since we had a non bookkeeping related chat.
Love lionheads. They're one of those breeds that people either love or hate and personally I think that they look so grumpy that I can just relate to them! The other breed that we would love to have would be a giant French lop which apparently can grow to around 15kg!
Our three all like each other but all of them want to be the boss where the doe (Sydney... Whose name when we adopted her was Marley!!!) actually is and puts up with no shenanigans from the other two.
Thumpa (named after his tendancy to beat the cage floor with his back foot to gain attention) is the randiest rabbit I've ever come accross and for a while his name was Barney after Barney Stinson off How I met your mother. He actually answers to Thumpa though where he never did to Barney.
Patch (named because of his black and white patchwork markings) is the baby of the bunch. On occassion he can be quite agressive towards the much larger Thumpa and we've had to put them into seperate adjoining cages. (only Sydney is house trained at the moment so she gets the run of the back part of the house where the other two are only allowed out when we're in the room).
Didn't even know that you could send rabbits away to be bonded... After rescueing these three and spending time making them feel secure I don't think that they would actually take well to having the instability of being hived off somewhere new again.
Right, back to bookkeeping topics methinks.
Good to have a bit of downtime for a minute though.
All the best,
Shaun.
__________________
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.
Very strange about our rabbits' names being so similar. Ours are purely outdoors rabbits and have the run of the garden during the day. It's only a small garden and quite secure, but we shut them away in their Wendy House (daughter's idea) at night. They can come and go through their little cat flap during the day, but they haven't quite learned how to open it yet so we have to prop it open! They love being outdoors and really loved the snow last winter
He's visited that rabbit at Pets at home every day this week. We got there today 15 minutes before it was due to be put up for adoption and it was already being loaded into a carrying box. The justification from the staff was that it was to a local school so they broke their own rules for them.
No complaints from me as it looks from the amount of toys they bought the bunny that it was going to a good home but Peter was pretty cut up about it as he really seemed to have his heart set on this one.
Ours summer outside but winter in the warm... Except Sydney who has made it very clear that she doesn't do slumming it outside at any time of the year, well, beyond some light excercise between meals (good life for some isn't it!).
Right, back to my spreadsheet again.
talk in a bit,
Shaun.
__________________
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.
Thank you . I have to wait for my provisional licence to come through then I can book my level 2 exam for January.
I am thinking of getting a free trial of QuickBooks over xmas so I can get to grips with it then take the computerised Level 2 in the new year, Ill have to hit the library to see if they have a book on it 1st if not im sure I can find info online.
Thank you . I have to wait for my provisional licence to come through then I can book my level 2 exam for January. I am thinking of getting a free trial of QuickBooks over xmas so I can get to grips with it then take the computerised Level 2 in the new year, Ill have to hit the library to see if they have a book on it 1st if not im sure I can find info online.
Still, as long as it's gone to a good home...hopefully.
