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Post by Admin on Nov 21, 2016 11:20:42 GMT
Ok firstly,
The Ledger Accounts (Trade / Trial Balances in long questions which is way too hard in long questions - so do not do this one! but remember there are short questions on it and you have to do them ones but they're not as hard once ya learn)
All you have to read is the first line of the question. For example, in the 2015 paper it said:
On 5 June 2015, S. Lally, a shopkeeper, purchased goods for 1,700 (euro) by cheque.
The thing you have to look out for is what the person is receiving! In this case, it is PURCHASES (never say goods!!). If they said something like purchased machinery, you would put in machinery instead of purchases but whenever it says "PURCHASED GOODS" you put in PURCHASES!
So (i) = Purchases
And then you read the question again to see what he is giving away. In this case, it is cash or bank (never say cheque either).
So (ii) = Bank
Then, here's the easy part. You just swap them around!
So (iii) = Bank
(iv) = Purchases
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Post by Admin on Nov 21, 2016 11:21:01 GMT
On 8 June 2014, D. Kelly, a restaurant owner, sold equipment for 3,300 (euro) cash.
Again, ask yourself what is D. Kelly receiving? In this case, it is CASH OR BANK (you can call it either when it is cash).
So (i) = CASH / BANK
And then read the question again to see what he is giving away. In this case, it is equipment.
So (ii) = Equipment
Then, the easy part again, just swap them around.
So (iii) = Equipment
(iv) = Cash / Bank
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Post by Admin on Nov 21, 2016 11:21:31 GMT
On 1 June 2009, C. Allen sold goods on credit to K. Davoren for 1,500 (euro).
This one is very different. This time it says "on credit" which means he hasn't received his thing yet. So, you put down the name of who is supposed to give him (C. Allen) the cash (in this case).
So (i) = K. Davoren
Now, you say what he is supposed to receive. (In this case, it is NOT cash!).
So (ii) = Sales
^ Remember this
(iii) = Sales
(iv) = K. Davoren
^ the easy part again
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Post by Admin on Nov 21, 2016 11:22:14 GMT
General journals
These are exceptionally easy!
Good things (things that you own) go on the Dr. (debit) side whilst bad things go on the Cr. (credit) side.
The easy clue to these is that you know if you're wrong or right! If both sides equal, you're right. If they don't, you did something wrong.
Question from 2015:
Enter the following balances in the partially completed General Journal of O'Driscoll Ltd.
(Make sure to fill in the date given too!)
In this case, 1 January 2015.
Buildings is already filled in for you with 812,000 (euro) on the debit side ('cause you own them, they are a fixed asset of yours, see it's like the balance sheet here)
Bank overdraft - 22,500
Creditors - 26,600
Ordinary share capital - 762,900
You must ask yourself, are any of these good or bad? They are ALL BAD! So they go on the Cr. (credit) side. Then you add your totals,
Dr. - 812,000
Cr. - 812,000
^ They're both equal, so there you got the question correct. Very easy! Sometimes they don't give you the ordinary share capital, however, but remember the clue is that both sides have to equal! So you add the Dr. side and then take away the Cr. side (of what you have so far) from the Dr. side - then you have your ordinary share capital. Do a final check by adding up both sides (individually) and if both equal, you're correct!
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Post by Admin on Nov 21, 2016 11:22:46 GMT
Sales / Sales Returns Book / Purchases / Purchases Returns Book (it's the same for both)
Example of a question in 2014
Enter the following transaction in the Sales Returns Book of Macy Ltd:
On 9 May 2014, Dolly Ltd returned goods 5,200 to Macy Ltd. (Credit Note No. 5). The VAT rate on these goods is 23%.
Firstly, you put in the date given in the box below "Date".
Secondly, you look at the title of the book, in this case, Macy Ltd - Sales Returns Book. The other company (Dolly Ltd. in this question) goes in the details box.
In the CN No. (Or In. No. etc), you put in the number of the document given in the question. In this case, it is 5 (so just put in 5).
For the F (Folio) box, you ask yourself, is this Sales or Purchases? If Sales, you put in DL1. If it's Purchases, you put in CL1. - This just has to be learnt off by heart. The "Returns" doesn't matter. Like if it's Sales Returns, it's still DL1. If it's Purchases Returns, it's still CL1.
Then in the Net box, you put down your given figure (5,200 in this case).
You find the VAT (23% in this case) of the given figure on your calculator then you put that figure into the VAT box.
In the last box, Total, you add the Net figure AND the VAT.
Now ain't that easy?
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Post by Admin on Nov 21, 2016 11:23:16 GMT
Debtors Control Account
Firstly, always choose the second format (under OR (Alternative Format). Never choose the first format. This goes for both Debtors and Creditors Control Accounts.
The first figure, Debtors balance in this case goes straight out to Balance.
The second figure, CREDIT sales (so sales to be paid) goes out to the Dr. side (do not get confused with Cr. side because of "Credit" sales).
You add the CREDIT sales with your balance, then put your new figure out into the balance (second box under the first one).
The third figure, CASH received from debtors in this case goes to the Cr. side (this is because it is cash paid from debtors and therefore, you take it away from your previous balance. Remember "Credit sales" was the previous figure and therefore had to be paid but now you received cash, so you must take away from your previous balance.)
There ya go now, you have your final figure (OR balance).
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Post by Admin on Nov 21, 2016 11:24:00 GMT
Trading, Profit & Loss Account short questions
2014
(i) = Purchases (you should know this off by heart)
(iii) = Gross profit (well taxes haven't been deducted from the figure, so it can't be anything else other than Gross profit)
(ii) = Cost of goods available for sale (figure above less closing stock (stock 31 / 12 / 13) - 350,000 (purchases + carriage inwards)
Your answer to (ii) then is 40,000
^ I know this one can be very confusing
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Post by Admin on Nov 21, 2016 11:24:23 GMT
Another Trading, Profit & Loss Account short question
2007
Firstly, you should find out the figure for Less Dividends. To work out this, you find the percentage given (Dividends declared) in the question and multiply it by the issued share capital. The AUTHORISED SHARE CAPITAL is there just to confuse you.
(i) 40,000 - FILL THIS INTO THE LESS DIVIDENDS BOX
(ii) Reserves / Retained profit
(iii) 150,000 - 40,000 = 110,000
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Post by Admin on Nov 21, 2016 11:24:45 GMT
Balance Sheet short questions now
2015
(i) From your general knowledge of a balance sheet, you should know that this is FIXED ASSETS
Now to work out (ii) which is your current assets, you add your less current liabilities and your working capital. In the question, working capital is blank and is labelled (iii) so make sure you fill that in. Then when you add the less current liabilities and your working capital, you should get 129,000 which is your answer to your current assets.
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