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    (Original post by tom_elsey)
    Well, my teacher helped write the Frank Woods book, so she's pretty good I was just the £5400 for the provision out!


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    were you supposed to deduct the 5400 from operating expenses then add the 720 increase in provision to expenses?
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    (Original post by tom_elsey)
    Well, my teacher helped write the Frank Woods book, so she's pretty good I was just the £5400 for the provision out!


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    Praise to Jesus!

    And ahh haha thanks man you made my day.

    And only the prov omfd, the most i would see you loosing is 3 marks for that though, 1 for not deducting it, and 2 for the incorrect profit figure
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    (Original post by Infamous12)
    were you supposed to deduct the 5400 from operating expenses then add the 720 increase in provision to expenses?
    Well, yeah i thought so, thats what i did anyway
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    (Original post by Brandon_RNS)
    Well, yeah i thought so, thats what i did anyway
    and it seems you were right! haha. Confident for that A grade?
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    (Original post by Infamous12)
    and it seems you were right! haha. Confident for that A grade?
    Umm i would say im more confident now but still i could have flopped in the other questions, i cant seem to remember what i put for them /: haha

    You confident?


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    (Original post by Brandon_RNS)
    Yeah i did and i didnt divide it by two because interest cannot be split over months. And myself and someone else had the same figure


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    I've realised where i went wrong... I got £168940... But if i reduce the extra £36000 for debenture then i get £132940. But i added the £4100 to the cost of sales instead of subtracting it... So if i add £8200 to cancel the figure i added on and to get the original added on then i get £141,140. How many marks do u think i would lose for these two mistakes?..
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    (Original post by princess_meera)
    I've realised where i went wrong... I got £168940... But if i reduce the extra £36000 for debenture then i get £132940. But i added the £4100 to the cost of sales instead of subtracting it... So if i add £8200 to cancel the figure i added on and to get the original added on then i get £141,140. How many marks do u think i would lose for these two mistakes?..
    Oh woww yeah thats true so if im completely honest...1 mark for the incorrect profit, maybe 2 for the cost of sales because that was kinda hard to figure out mentally, and maybe another 1 for the debenture because it seems many people made that mistake, so id say 4 marks, 5 at max my opinion


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    (Original post by Brandon_RNS)
    Umm i would say im more confident now but still i could have flopped in the other questions, i cant seem to remember what i put for them /: haha

    You confident?


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    Kinda. I hope the grade boundaries are lowered a bit this year but we will have to wait until results day.
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    (Original post by Infamous12)
    Kinda. I hope the grade boundaries are lowered a bit this year but we will have to wait until results day.
    Yeah three mother****ing months away smh


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    (Original post by princess_meera)
    I've realised where i went wrong... I got £168940... But if i reduce the extra £36000 for debenture then i get £132940. But i added the £4100 to the cost of sales instead of subtracting it... So if i add £8200 to cancel the figure i added on and to get the original added on then i get £141,140. How many marks do u think i would lose for these two mistakes?..
    It said something like 8200 worth of goods were sold on a sale or return basis. When it wasnt sold i think you were supposed to deduct from revenue?
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    (Original post by Brandon_RNS)
    Yeah three mother****ing months away smh


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    yeah tell me about it. I hope the person marking my paper is in a good mood on the day hahaaa
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    (Original post by Infamous12)
    It said something like 8200 worth of goods were sold on a sale or return basis. When it wasnt sold i think you were supposed to deduct from revenue?
    Yes thats exactly what i did and add it back into closing stock which would increase profit as more stock means less purchases etc.


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    (Original post by Brandon_RNS)
    Yes thats exactly what i did and add it back into closing stock which would increase profit as more stock means less purchases etc.


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    im just happy i showed ALL my workings, at least that way the examiner can see that my calculations were correct.
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    (Original post by Infamous12)
    It said something like 8200 worth of goods were sold on a sale or return basis. When it wasnt sold i think you were supposed to deduct from revenue?
    I did deduct the £8400... But it said the cost was £4100 so that had to be added or subtracted ??... But i did the opposite to what we were meant to so that would mean my IS would be £8200 out
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    (Original post by princess_meera)
    I did deduct the £8400... But it said the cost was £4100 so that had to be added or subtracted ??... But i did the opposite to what we were meant to so that would mean my IS would be £8200 out
    the 4100 increased the closing inventories which means that it decreased the cost of sales so both revenue and cost of sales needed to be reduced. I messed up on the debentures and the operating expenses as i forgot to deduct the 5400 out.
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    (Original post by Infamous12)
    the 4100 increased the closing inventories which means that it decreased the cost of sales so both revenue and cost of sales needed to be reduced. I messed up on the debentures and the operating expenses as i forgot to deduct the 5400 out.
    Oh god :/.. Yeh i added the 4100 which makes sense where i went wrong... But i think we both will probs only lose 4/5 marks cuz i managed to get the figure others were stating just doing the two changes. Also... I don't get why you would include the whole debentures figure?... Help?!
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    (Original post by princess_meera)
    Oh god :/.. Yeh i added the 4100 which makes sense where i went wrong... But i think we both will probs only lose 4/5 marks cuz i managed to get the figure others were stating just doing the two changes. Also... I don't get why you would include the whole debentures figure?... Help?!
    I have no idea :/ In unit 3 accounting there is a section on partnership accounts and you have to actually divide the interest in between months so i thought it was the same here, but apparently not.
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    (Original post by Infamous12)
    I have no idea :/ In unit 3 accounting there is a section on partnership accounts and you have to actually divide the interest in between months so i thought it was the same here, but apparently not.
    Yeh thats what i thought ... Cuz when i did unit 3 i came across the same thing and you would think you would have to apply the same rules clearly not!!... Unless it turns out others are wrong cuz i asked my teacher and she said your meanta divide them so even teachers are saying different well mine compared to some on here... Some have said the same as me and some have said you have to include all - also would you not be applying accruals concept - matching expenses to the correct period?..
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    (Original post by princess_meera)
    Yeh thats what i thought ... Cuz when i did unit 3 i came across the same thing and you would think you would have to apply the same rules clearly not!!... Unless it turns out others are wrong cuz i asked my teacher and she said your meanta divide them so even teachers are saying different well mine compared to some on here... Some have said the same as me and some have said you have to include all - also would you not be applying accruals concept - matching expenses to the correct period?..
    I guess the only reasonable explanation is how it's a finance cost and therefore treated differently to a normal expense. For example, if you paid a preference dividend, which is also in the bottom section of the I/S for limited companies, and it was paid on 31st Oct, you wouldn't apply the accruals concept to that, and so you don't apply it to debenture interest?


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    (Original post by tom_elsey)
    I guess the only reasonable explanation is how it's a finance cost and therefore treated differently to a normal expense. For example, if you paid a preference dividend, which is also in the bottom section of the I/S for limited companies, and it was paid on 31st Oct, you wouldn't apply the accruals concept to that, and so you don't apply it to debenture interest?


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    It specifically said that interest would be paid on 31 october? Putting the full amount without it actually being paid is what confuses me.
 
 
 
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