I completed the BA7 mock today (don’t know result yet), but bit baffled by one of the questions and wonder whether anyone can advise.
The question was centred around a subscriptions account for Not for profit organisation.
The accrued and prepaid subscriptions brought down balances were provided as well as the Bank Receipts figure for subs. Info was provided to enable me to work out the figures for the carried down subs in arrears and subs prepaid too.
The question asked ‘What is the balance on the Subscriptions account?’
Now, I’m not quite sure what exactly this was asking - for the balancing figure to be posted to the Income and Expenditure Account, or the difference between the accrued and prepaid carried down balances at the end of the year?
I ended up putting the former (I&E Account figure), as it really seemed too easy and obvious to be meaning a simple difference between the end of year accrued and prepaid subs figure, plus it didn’t ask whether the ‘balance’ was a Debit or Credit figure.
Now I’m worried if I get asked the same on the real BA7 exam....what do you guys make of the question?