First Previous - Page 1 of 1 - Next Last

BA4 Computerised Mock Exam Question

  • Student
  • 9 posts
  • # 115107

I am struggling to work through one of the error corrections on an ICB BA4 mock exam for Berkshire Carpets.  I have been given the following:The drawings account showed an entry posted in March for £5,000 cash withdrawn for personal use.  In fact this amount had been paid into the bank account to assist with the overdraft situation and not withdrawn.  The bank account entry is correct.  It is decided that this should be treated as a return of drawings rather than an inflow of capital.  Has anyone else had problems with this question?  I have corrected the other errors but am still £10,000 short to balance the suspense account on the debit side.  I need to credit drawings £5,000 and debit suspense £5,000 but that still leaves me with £5,000 any ideas?  Also, I have stupidly clicked finish on the mock before I downloaded the reports and now can't check these, arrgh, I'm not having a good day!Cry

  • Member
  • Practice Licence
  • 28 posts
  • # 115108

Hi Pippa

Ive never done this mock but with reversal errors you have to 'double up' the amount to correct.

So first you have to remove the incorrect posting by debiting suspense and crediting drawings with the £5000. Then to post the entry as it should have been debit suspense and credit drawings again with £5000. This should clear your 10,000 suspense balance.

Hope this makes sense, even with computerised exams drawing up T accounts can help.

Trish

  • Student
  • 9 posts
  • # 115111

Hello Trish

Many thanks for your response.  Yes, this is the answer I finally came up with also.  I had just looked at the same question for so long my brain had gone into meltdown.  Thank you for responding.

I just need to try and get hold of the reports now to see if I have done everything right!

Pippa

  • Member
  • Practice Licence
  • 28 posts
  • # 115112

Glad you got sorted!

I'm sure if you ring the ICB and explain your situation they will email you the PDF with the model reports.

Hope all goes well with your final exam.

Trish

First Previous - Page 1 of 1 - Next Last
loading