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Still stuck on June 2009 paper.......fail!

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  • # 73934

Hi

I am not doing well at all on this June 2009 paper and I have just under two weeks till I sit the exam Surprised

Anyway Question 4

I can't copy the question from the pdf documument so unless I type out the whole trial balance I am hoping you may have a copy of the paper!

My question is how do you arrive at the retained profits figure of £155290??  I assume there is some adjustment of profit from the extra info you are given but I am still left scatching my head.

 Financed by:

Share capital 300000
Share premium 12500
Revaluation reserve 200000
Retained earnings 155290

                             £667790

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  • # 73936

Because I've passed the Level III manual I've started to re-use the working papers I did the calculations on. I only used one side of the paper so now use the reverse for rough notes. (I hate throwing things out so recycle paper this way). So, most of my notes are now hard to find.

I do know where you might have gone wrong so rather than give you the answer, I'll give you a hint. (This will be better for you as it may help the process stick). Subtract what you get for profit from the answer page. Then go back to the original trial balance and see if you can find that figure. I think that's where I went wrong the first time. I did all these exams at least twice - some three times.

I don't know how you've approached this question. One method is to take each adjustment and see how it affects the profit (as they don't ask for a Profit & Loss Account). Myself, I wrote out each part as a journal entry to help it stick in my mind.

Edited at 30 Aug 2011 03:21 PM GMT

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Thank you so much for your advice Peasie.

I had a fresh look this morning after going through the chapter in the Advanced Bookkeeping book on incomplete records last night and slowly I think I am grasping how they like you to approach these questions.  Trouble is when I did AAT which is some time ago now I don't remember it being in this sort of depth but then I guess for bookkeeping its more realistic this sort of thing will come up often when working for various clients.

It seems logical now I recalculated the profit figure and hey presto there it was!!

Maybe it was a bad day for me yesterday because I also got the double entry round the wrong way on the club accounts question lol! Undecided

I am now off to do some more incomplete records questions so I won't get caught out again.

Thanks again Laughing

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  • # 73956

Macksie said:

Maybe it was a bad day for me yesterday because I also got the double entry round the wrong way on the club accounts question lol! Undecided

I could never get subscriptions accounts right. I could get the amount right but would mess things up if I was asked to show the T account for subscriptions.

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Lol I am still thinking passing this exam = miracle!!

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