OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
View ACCA F3 / FIA FFA lectures Download F3 notes
October 28, 2015 at 11:32 am
i did not understand what you did in question number three. i checked the answer and could not fathom. why are we subtracting opening and closing balance if you could please kindly explain thnk
John Moffat says
October 28, 2015 at 12:22 pm
You you mean example 3 or test 3?
October 22, 2015 at 9:17 am
I just have a doubt as to why is the insurance account balanced twice? Isn’t it enough to find the final balance after recording the prepayment?
I hope my question is clear
October 22, 2015 at 10:00 am
However the accounts will usually be balanced as soon as the bookkeeper has finished. Then a trial balance will be produced listing the balances. The the adjustments (including accruals and prepayments) will be entered.
For the exam it does not matter when you take the balance
October 15, 2015 at 2:21 pm
hello sir, in example 0ne you credited pre payments in insurance account and debited insurance in the prepayment account… m confused on why you did that please help
October 15, 2015 at 3:13 pm
Because the have overpaid we credit prepayment to take out the amount of the overpayment, and debit prepayments.
(What we write against them doesn’t matter, but it is usual to write the name of the other account – you need to watch the previous lecture on double entry to understand this)
You must be logged in to post a comment.
OpenTuition.com is dedicated to providing all accountancy students throughout the world with the resources they need to study for the major … Learn more