Comments

  1. avatar says

    Is it appropriate to transfer the balances on Income Statement items to Income Statement instead of opening Income Statement T A/C? E.g. Rent A/c being debit bal could be written as transfer to Income Statement while closing it off.

    I do sincerely appreciate you.

  2. avatar says

    We’ll the explanation was very helpful… I just had a doubt .. What was striking me to forward .. How did withdrawal change from $500 to $100 … Capital $ 5000 + profit (I/S) $400 – withdrawal $ 100 ??? M

    • Profile photo of John Moffat says

      Have you watched the earlier lecture on Chapter 2 of the Course Notes?
      It is in that chapter that I explain what the Statement of financial position, and the Statement of profit or loss are showing.

  3. avatar says

    Hello Sir,

    Thank you for this helpful lecture.

    I know that the Statement of Financial position did balance off nicely but I think I was attentive to the lecture and know how did the $ 500 withdrawals come up. But I wanted to know whether this error is going to cause problems later on.

    Thank you.

    Regards,
    Priya

  4. avatar says

    Oh,sorry, Mr. Moffat,I am poor in English.

    Comparing with other lectures,you give many examples to make us understanding easily.Thank you.

    I am misunderstanding the attribute of the lecture,because it is interesting and useful .

  5. avatar says

    where did the 500 amount on the withdrawal ledger come from i thought the drawings were to be 100 because thats what kristine withdrew from the business. please help didnt understand where the 500 came from.

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