I would like to ask you how should I approach this exercise ?
' A BACS payment for 1197 pounds has been received from Malvern Fashion wno incorrectly state that the amount is in full settlement of their account balance as at 31 March 20-x. The customer's account in sales ledger is shown below. You are to calculate the correct up-to-date balance of the Malvern Fashions account as shown in the sales ledger account above and then indicate with a tick in the right -hand column of the table below which three transactions are still outstanding'
My thinking: Before payment of 1197 pounds I have debit balance on my account 3647 pounds. After payment of 1197 I have debit balance 2450 pounds and this is amount that is outstanding, it still needs to be payed. Does it mean that I am supposed to find by trial and error three transactions that constitute alltogether the amount of 2450 pounds?
Yea that's about the size of it. Although the question is can it be done with three outstanding items. My adding up skills are not so good after having been on the caffeine laced cocktails so I've failed so far. Have you got the answer?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Can you show us the rest of the question please Rafal. The other numbers that you are quoting are obviously coming from somewhere but its not in the part of the question that you have shown in the picture.
Also, which book is that from please.
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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.
Hi Both
Yes seeing the full Q might help, as at the moment Im wondering if its a misprint that we talked about last time. Do you also have the answers at the back of he book Rafal?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Can you show us the rest of the question please Rafal. The other numbers that you are quoting are obviously coming from somewhere but its not in the part of the question that you have shown in the picture.
Also, which book is that from please.
I don't know which book this is from. I was given this handout so that I have homework to do. I think there is something incorrectly printed on this handout therefore there are troubles with solving this exercise. I came across many errors in learning materials especially those ones that were printed couple of years ago. I enclose two pictures that show full exercise.
-- Edited by rafapak on Saturday 5th of November 2016 07:34:27 PM
Wonder how many people are scratching their heads with their homework and wondering whether or not to give up the course thinking they just dont get it.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
1752+135 = 1887 (invoices) - 1537 (received incl. credit notes) = 340 outstanding from the 1752 (we assume that the 135 was paid as the question states only 3 remaining transactions) plus neither the 450 or the 1650 have been paid (so you have three unpaid transactions (actually, two unpaid and one part paid)).
However, its all too contrived to get to the three remaining transactions and the coincidence of the amount outstanding from the transactions being exactly the same value as those two credit notes indicates to me that those two credit notes have been incorrectly applied twice to get down to 1197. Possibly resulting from a reissued invoice reducing the debt that the client has still applied the credit notes to.
The real issue around this question is that there is no definitive answer as to which invoices are part paid. the 1752+135 was an educated guess based on the last character needing to be 7 but thats hogwash in the real world and something that you would only encounter in these sort of questions. In the real world one would phone up the accounts payable team of the client and ask which invoices that they believed they had paid and at the same time discuss which payment run the other entries would be on (preemptive credit control).
If my analysis is right (happy to be corrected) these sound like entry level ACCA type questions. Are you doing ACCA Rafal?
p.s. amended to add the paragraph before the last one in order to emphasise to the readers that my answer uses assumptions over the transactions involved rather than being a definitive this is the only possible answer. Plus I add how this should be handled in the real world rather than in a test question.
-- Edited by Shamus on Sunday 6th of November 2016 06:42:23 PM
__________________
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.
I've looked at this over and over and...*scratches head*...I reckon there's an error in the exercise. It's from an Osborne book by the looks of things - I've had a look in mine (2013 syllabus) but couldn't find it...perhaps you're doing the new syllabus or it's a tutor handout. I'd love to know the answer when you get it!
Did you get this homework issue sorted? We are all wondering what happened.
Joanne, our teacher admitted during class that there was printing error in this exercise. Unfortunately while she was explaining what correct figure should have been provided I was discussing something else with a person who is sitting next to me so I didn't catch what correct figure should be and where. I will ask people in class again where error is and I will tell you guys as soon as I get the answer.
