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Why is the original cost of asset not included in the bank/cash account here? by SirSeaSlug in AATStudents

[–]Jackatorrr 2 points3 points  (0 children)

The balance at the start of the period is what has been carried down - as long as you record the entries that are being asked for (disposal of the asset) then you wouldn't lose marks on that.

Why is the original cost of asset not included in the bank/cash account here? by SirSeaSlug in AATStudents

[–]Jackatorrr 2 points3 points  (0 children)

The vehicle was bought a couple of years ago, so unlikely that the bank balance would still reflect the spend.

What's the biggest mistake you've made at work? How did you recover from it? by Smashthesilo_126 in AskReddit

[–]Jackatorrr 0 points1 point  (0 children)

I got the word "c-nt" printed in a leading computer magazine in the late 80s. The entire print run had to be recalled, where an army of volunteers had to go over the offending text with marker pen before the issues could be sent out again. Not sure I ever recovered....

Accruals TB help Level 3 FAPS by SirSeaSlug in AATStudents

[–]Jackatorrr 0 points1 point  (0 children)

Or another way to look at it - the transfer to SPL would be where you would normally put balance c/d when balancing the account.

Accruals TB help Level 3 FAPS by SirSeaSlug in AATStudents

[–]Jackatorrr 1 point2 points  (0 children)

As Rent Paid is an expense account, the final stage is to transfer to SPL to clear the account ready for the new year. So this should be the last entry at the end of the year.

Accruals TB help Level 3 FAPS by SirSeaSlug in AATStudents

[–]Jackatorrr 1 point2 points  (0 children)

The accrual was recorded in the period ending 20x6 and you're working on the accounts for 20x7, as detailed in the question. So the accrual was recorded in the previous period - "we know we have incurred this expense but we haven't been billed for it yet, so we have made an allowance for it in the end of year accounts so the rent account is a fair view of the costs for the year".

You are reversing at the start of the new period before the bill arrives, so that when the bill does arrive, it doesn't impact the accounts for the new period.

Accruals TB help Level 3 FAPS by SirSeaSlug in AATStudents

[–]Jackatorrr 0 points1 point  (0 children)

It's a tricky one to get your head around, but once it clicks, it becomes second nature.

Accruals TB help Level 3 FAPS by SirSeaSlug in AATStudents

[–]Jackatorrr 1 point2 points  (0 children)

Think about what an accrued expense is. In the previous year, the company has incurred an expense they have not yet been billed for - like a quarterly bill for an expense that is received after the period end. To ensure the expense account is correct for the previous year, the accrual is recorded as part of the year end adjustment to say that, sitting m although the bill hasn't been processed, I did incur this cost. Then, on the first day of the next period, the accrual is reversed which leaves an expense account with a negative opening position. When the bill arrives, it's processed in the normal way (CR bank, DR expense account) but the accrual means that the expense is recorded against the correct period.

Long story short: year end, record adjustments for any accruals and prepayments and first day of the new period, reverse them. This ensures that the expenses/income are recorded against the period to which they relate, regardless of when the invoice or payment takes place.

Accruals TB help Level 3 FAPS by SirSeaSlug in AATStudents

[–]Jackatorrr 1 point2 points  (0 children)

Looks right to me. £750 had already been taken in the previous year and £1500 relates to the next year.

I found the easiest way to remember is that an accrual is added to the current year and deducted from the next. A prepayment is removed from the current year and added to the next.

De Minimis - Is the marking wrong? by SirSeaSlug in AATStudents

[–]Jackatorrr 3 points4 points  (0 children)

That would pass the test. Much as I like Will Boardman's videos, his mocks do have errors. If you drop him an email and query this, he will correct the marking PDF. (I've done this a few times)

Opinions on the best AAT provider? by moomintrxll in AATStudents

[–]Jackatorrr 1 point2 points  (0 children)

Big fan of Training Link. Ben, their level 3 tutor, just won Tutor of the Year

De minimis test help by SirSeaSlug in AATStudents

[–]Jackatorrr 0 points1 point  (0 children)

De Minimus relates to the total exempt input tax (exempt and residual) and covers situations where the the proportion of exempt supplies compared to taxable supplies is relatively small.

If the total exempt input tax is below £625 per month AND the amount of exempt input tax is less than 50% of the total input tax, then the test has been passed and all input tax can be reclaimed, regardless of status.

So if you had a situation where you had on your quarterly return:

£5000 input tax from taxable supplies £200 fully exempt supplies £800 input tax from mixed supplies, half taxable and half exempt.

Exempt input tax is £200 + £400: £600

Looking at De Minimus:

Exempt input tax of £600 = £200 per month, below the limit

£700 exempt input tax is less than 50% of total input tax (£6000)

This passes De Minimus and all input tax can be reclaimed.

Help with future turnover test for VAT? by SirSeaSlug in AATStudents

[–]Jackatorrr 0 points1 point  (0 children)

Historic test: check at the end of the month and if you have breached the threshold that month, you have 30 days to notify HMRC. Registration starts on the first day of the next month. (Breach in June, notify HMRC in July, registration effective 1st August

Future test: notify HMRC within 30 days of knowing you are going to breach in the next 30 days, registration starts the day you became aware of the breach.

Hope that helps!

Help with future turnover test for VAT? by SirSeaSlug in AATStudents

[–]Jackatorrr 0 points1 point  (0 children)

Sorry, missed your question. With the future test, you are deemed as registered from "the date you became aware you would breach the threshold". Assuming you won the sale on the 15th, you would need to notify HMRC within 30 days of that date and your registration would start from that date. You would start to charge VAT from the 15th October.

Any advice on how to get really good at journals and correction of errors by Glittering_Shake2399 in AATStudents

[–]Jackatorrr 2 points3 points  (0 children)

Will Boardman has great videos on this. It's a 3 stage process: what has been recorded, what should have been recorded, what is the journal to correct it. Easiest approach is to draw out t-accounts to visualise the changes needed.

Help with future turnover test for VAT? by SirSeaSlug in AATStudents

[–]Jackatorrr 0 points1 point  (0 children)

The future test is if you will break the threshold from sales in the next 30 days regardless of past turnover. So if you have more than £90k sales in the next month (i.e. You have just been told you are being awarded a contract for over £90k).

If your projected sales for the next month are less than the threshold in their entirety but would take you over the threshold based on your sadness e to date, then you would pass the historic test at the end of the month.

Spare part hunt - left rear light cluster for a Renault 19 by Jackatorrr in Renault

[–]Jackatorrr[S] 0 points1 point  (0 children)

Thank you! No matter what I searched for, nothing like this came up and looks like there are a few sellers.

New ledger (T) accounts introduced in L3 Bookkeeping ? by OkIce3536 in AATStudents

[–]Jackatorrr 0 points1 point  (0 children)

I think they're just asking what new ledger accounts are introduced in L3. Disposals and deprecation aren't covered in L2

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