AAT Level 3 FAPS case studies

AAT Level 3 FAPS · Put your knowledge to work in context.

Financial Accounting: Preparing Financial Statements (FAPS) is the financial-accounting component of the AAT Level 3 Diploma in Accounting. AAT, the Association of Accounting Technicians, describes itself as the leading professional body for accounting technicians, stating that it provides training for a huge range of accounting and finance roles and that its qualifications are respected by employers worldwide. The AAT Level 3 FAPS case studies are 5 cases and about 3,153 words.

Statement of affairs versus the capital account: finding the profit

Marlow Antiques is a sole trader who keeps only a cash book and lists of debtors and creditors, with no double-entry records. At 31 December 20X5 the following were verified: shop premises £150,000, fixtures £24,000, inventory £18,600, trade receivables £31,400, prepaid expenses £1,250 and a bank balance of £6,850.

625 words, about 3 min 2

Bank reconciliation: cash book adjustments versus timing differences

Thornbury Services has a bank column cash book showing a debit balance of £3,482 at 31 May 20X5. The bank statement at the same date shows a favourable balance of £4,296.

646 words, about 3 min 3

Period-end adjustments: prepayment, part-year depreciation and inventory

Millgate Trading has a year end of 31 December 20X4 and its draft figures were prepared by an inexperienced bookkeeper. Insurance in the trial balance is £5,400, being a premium of £4,320 paid on 1 April 20X4 covering the twelve months to 31 March 20X5, plus the prepayment of £1,080 brought forward at 1 January 20X4 that covered January to March 20X4.

610 words, about 3 min 4

Loan classification and the capital section at the year end

Ashfield Garden Services is a sole trader with a year end of 31 March 20X5. Among the balances in the draft statement of financial position are a 6% bank loan of £60,000, taken out on 1 April 20X2 and repayable in ten equal annual instalments of £6,000, the first falling due on 1 April 20X5; loan interest paid during the year of £3,300; a bank overdraft of £4,200; trade payables of £31,700 and accruals of £2,150.

583 words, about 3 min 5

Sales ledger control account does not agree to the list of balances

Bexley Wholesale extracts its sales ledger control account at 31 March 20X5 and finds a debit balance of £28,470, while the total of the list of customers' balances is £27,930. Investigation reveals the following: a credit note of £128 sent to a customer was entered in the customer's account but not in the control account; discount allowed of £96 was posted to the control account twice; a contra with the purchase ledger of £640 has not been entered in the control account; a customer's balance of £215 was left out of the list; a bad debt of £190 was written off in the control account but not in the customer's account; and a sales invoice of £157 was entered twice in one customer's account.

689 words, about 3 min