Hi All - and hope I'm not breaking any rules here...
Just finished my exam ready to photocopy and send off on Monday, but something is bothering me...
At the start of the paper I had to input an opening TB, and then reverse some accruals and prepayments.
At the end of the exam it asks to me process a prepayment, which is nothing to do with the opening one. It does not ask me to accrue anything, nor does it refer to the opening accruals that I have reversed.
When I run off a final P&L some of the expenses are in credit due to the reversal of the opening accruals and nothing having been paid/re-accrued.
I'm worried that if I don't re-accrue I may loose marks (becuase clearly in the real world I would). However, I'm also worried that if I do re-accrue them I may loose marks because I've done something that the paper does not ask me to do!!!
Has anyone come across this before, and if so, what did you do and did you pass?
...have had same dilema!!!
Have reapplied the accruals as no invoice has been received for electricity etc to cancel out the CR in expense account. As of end Jan 2010 they are still effectively accruals as not paid-(and causing inaccuracies in the P&L)...then I wondered if I should also add on an extra month to the accrual for electricity when I repost it as it is an expense occured during the month that we have no invoice for...likewise should we repost the prepayment of road tax (less one month). In reality I feel if I was working as a bookkeeper I should calculate all accruals and prepayments before financial reports are drawn up, whether they are monthly reports or final accounts.... This task seems v ambiguous!
Do we use our initiative in a level 2 exam or not??? Can't afford to fail! Am going to include a covering paragraph when I submit my answer to this task to justify my decisions.
My advice (as in the other thread Elizabeth mentioned) is not to do anything the exam hasn't asked you to do. Don't forget this isn't a real life situation it is an exam. Yes in real life you would enter the invoice for the accrual which would cancel out the credit entry in the expense account, but the exam doesn't ask you to do this. The exam is just testing your knowledge of how to reverse accruals and prepayments.
Going to do as advised. It isn't a particularly hard exam, think I just worry in case it's a trick question I am going to do exactly what question asks but include a brief paragraph with answers to make it clear that I am aware the credit balance in expense a/cs won't allow for accurate financial reports....then I'm posting it
Thanks for your time- seems a really friendly forum!
-- Edited by c on Saturday 17th of December 2011 09:45:04 PM
I enclosed a separate sheet of paper with the exam stating I had carried it out in the way the exam asked for but that I found it odd to do things that way and gave my reasons.
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Do we use our initiative in a level 2 exam or not??? Can't afford to fail! Am going to include a covering paragraph when I submit my answer to this task to justify my decisions.
I am going to do exactly what question asks but include a brief paragraph with answers to make it clear that I am aware the credit balance in expense a/cs won't allow for accurate financial reports....then I'm posting it 
Thanks for your time- seems a really friendly forum!
