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Level 3 manual - June 09 Q3 'Colin Price'- Can anyone offer some help with this question please?

  • 6 posts
  • # 71719

I am having a problem with agreeing with both the sales and the purchases for the year to 31 Mar 09 in the TP&L. 


Cash Sales = £163,500
Debtor receipts=£44,100
Last yr Debtors = £7,500
This years Debtors = £8,950

By my calculations the sales are £209,050 (£100 less than showing in the answer). 

The only other information that could affect this is a new provision for bad debts of 5% (£448) but I have accounted for this in the expenses, which agrees with the answer.

In the question it refers to goods taken for owners own use, so I have Dr the Drawings and Cr the purchases but although the increased drawings are reflected in the balance sheet it is not reflected in the purchases in the TP&L.

Has anyone done this question or could offer me some support as my training provider is unable to help?

Ruth
Peasie
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  • # 71724

I was just about to do that question. I think if I hadn't seen this posting I would probably have come up with the same answer for sales and likely found my balance sheet £100 out. The only thing I can think of is the extra £100 was from the cash sales but £100 of it wasn't banked (as the cash has increased by £100). In a real exam situation I would have gone to pieces and spent the whole 3 hours trying to find this.

Maybe this isn't the answer - but one thing I have noticed is these later exams are being designed to trick people rather than test them.......compared to the earlier exams. Just my opinion.
  • 6 posts
  • # 71725

Peasie said:

“I was just about to do that question. I think if I hadn't seen this posting I would probably have come up with the same answer for sales and likely found my balance sheet £100 out. The only thing I can think of is the extra £100 was from the cash sales but £100 of it wasn't banked (as the cash has increased by £100). In a real exam situation I would have gone to pieces and spent the whole 3 hours trying to find this.

Maybe this isn't the answer - but one thing I have noticed is these later exams are being designed to trick people rather than test them.......compared to the earlier exams. Just my opinion.”
Hi Peasie
You are brilliant! I had entirely missed the increase in cash..... It seems to be taking it a bit too far but I suppose it is about observation and I simply didnt see it. 

I have found this paper very hard indeed in places and it is taking its toll on my confidence. I am doing quite a few of the past papers prior to doing the online mock as there is only one of those.

Can you answer the bit about the drawings and purchases.... I wonder what I have missed here?

Many thanks for replying

Ruth
Peasie
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  • # 71729

I know what you mean about the confidence. I thought I was doing great with the earlier year exams and now with these latest ones my confidence has been shot to pieces.
Here's my calculation for the Purchases

Credit purchases 112,500
Less creditors at start of year (4,000)
Add creditors at end of year 5,250
Less stock taken for private use (1,250)
Total =  112,500

I hope someone will come on and give their opinion as to that £100 

EDIT : The reason I mention the confidence is because I know in the real exam it will be using the wipeboards that have squares marked on them. I hate this. I think for level II I even wrote at an angle because the squares were annoying me. But doing these past papers I know how much I appreciate my large desk with 3 or 4 A4 pads to look at. No two wipeboards that I will have to keep on flipping over. I'll end up failing an exam because the exam conditions are totally unreal. Nobody would work in real life in those cramped conditions. Rant over (for now).

Edited at 03 Jun 2011 02:50 PM GMT
  • 6 posts
  • # 71733

I think we are suffering in the same way except I really think you have grasped this or are more nearly ready than me.  I seem to be going backwards as I should have sussed the purchases easily Frown. 

I have just finished this one now (thanks to your help) so I will leave it for today until I feel fresher but will take your advice and tackle an earlier paper next in hope I will find it more straight forward.

I want to leave the online mock until I feel confident and ready to sit the real thing.  I have not entered my exam yet as like you I am just getting over the environment at the test centre!

Good luck do let me know how you get on
Ruth
Peasie
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  • # 71734

I don't think I am nearer ready than you. Had I not noticed this post I woiuld never have got this answer. Which to be honest I still don't think is right - there is no way they would put something like that into an exam to trip people up.

How many of the past papers do you have? I bought all of the ones available in the shop plus another one in Dr James Marshall's book. I started with the older ones first and worked my was to the present day. Had I started with the later ones I would have given up I think.
  • 6 posts
  • # 71736

I bought 4 to start plus one provided by my training provider. I have completed 3 in total so far with varying levels of difficulty.  Got 2 left to do (Oct 08 and Oct 09) .  Given the struggle I am having, I will probably have to buy the others that I haven't ordered.  Each time I hit a snag I have to go back and re-revise the topic so by the law of elimination I should eventually have uncovered all my areas of weakness!
Peasie
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  • # 71737

I did ok on the October 2008 exam - it was after that they started getting difficult.
Peasie
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  • # 71803

Just thought I'd bump this back up after the weekend in the hope someone may have an opinion.
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