I have 2 questions in relation to aat level 3 final accounts preparation.
1. They give you trial balance in an exercise. You are supposed to prepare income statement and balance sheet later. There is bank loan in trial balance. They don't tell you if this is long term or short term loan. Therefore it is impossible to classify given loan to current or non current liabilities. How students are supposed to classify bank loan if it is not stated whether a given loan is short term or long term loan?
2. Are students recommended to learn balance sheet layout and profit and loss layout by heart or they give you layout during exam so that you only have to put data into emply cells ?
I have 2 questions in relation to aat level 3 final accounts preparation.
1. They give you trial balance in an exercise. You are supposed to prepare income statement and balance sheet later. There is bank loan in trial balance. They don't tell you if this is long term or short term loan. Therefore it is impossible to classify given loan to current or non current liabilities. How students are supposed to classify bank loan if it is not stated whether a given loan is short term or long term loan?
2. Are students recommended to learn balance sheet layout and profit and loss layout by heart or they give you layout during exam so that you only have to put data into emply cells ?
Regards
Rafa
Reverse Order...
2. If they don't expect it, they should. The structure is not complex and finding elements of the financial statements is not something that you should ever need to think about. Remember that you are studying to learn, not studying just to pass exams.
1. You need to include more information. is it a company or are they self employed? what size business? Those elements are generally clues as to the expected treatment of financial instruments in the question.
HTH,
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.
I have 2 questions in relation to aat level 3 final accounts preparation.
1. They give you trial balance in an exercise. You are supposed to prepare income statement and balance sheet later. There is bank loan in trial balance. They don't tell you if this is long term or short term loan. Therefore it is impossible to classify given loan to current or non current liabilities. How students are supposed to classify bank loan if it is not stated whether a given loan is short term or long term loan?
2. Are students recommended to learn balance sheet layout and profit and loss layout by heart or they give you layout during exam so that you only have to put data into emply cells ?
Regards
Rafa
1. Thought they gave you the split.
2. Yes you need to learn it. For exam and as Shaun says for the wider learning.
__________________
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
