• Avatar of John Moffat says

      It means that in the financial statements we should show the true economic effect of a transaction (the substance) even if it is different from the legal position (the form).

      This is covered in the later chapter and lecture on accounting conventions.

  1. avatar says

    Greetings Kind Sir.
    I just wanted to say THANK YOU SOOOOOOO MUCH. I find your videos very intuitive. With your effective teaching methodology, I was able to solve a question regarding the equation of financial position (Assets= Capital + Liabilities) in a revision kit of mine (BPP Publications) . I honestly can’t thank you enough, you truly deserve a round of applause, a standing ovation even. Hats off to you sir! Why I must say I’d give you a hug right now if I could. Oh, and the lecture notes indeed are a bonus! I’m currently doing CAT and once I came across this heavenly website, I was simply too bewildered to think that such a marvel even exists! The lectures on Cost Accounting too have made my life pretty easy. My lecturer isn’t particularly helpful for Management Accounting, and the videos posted under the F2 Lectures were more than helpful for me to be self-reliant in revising, all thanks to you good sir. Keep up this spirit, may you be blessed for all your merits!! :D

  2. avatar says

    In the 2nd chapter of F3,regarding the example , i did the trail balance for that.But in trail balance in debit side i get 16400 and in credit side i get 16800.Please let me know what is the mistake i would have done.
    but the income statment, i did right.I got gross profit 2200 and net profit as 2000 as you did in the lecture.
    Help me out please.

      • avatar says

        Iam not able to find answer.Iam giving my trail balance below.
        Trail balance
        Cash 5800 10000 capital
        shop 2000 1400 payable
        purch. 3000 5200 sales
        car 3000 200 electricity
        receiva 1400

        TOTAL 16400 16800 TOTAL

      • Avatar of John Moffat says

        But in the second chapter there are no debits and credits, and no trial balance!!

        Watch the next lecture to see how we do the debits and credit and how we prepare the trial balance (it is trial balance, not trail balance :-) )

        (I don’t know why you bothered with debits and credits and a trial balance, but anyway the electricity is a debit not a credit. Then it will balance :-) )

  3. avatar says

    Hi Mr.Jhon im doing F2 & F3 exams this december following only your lectures and notes. Is it well enough to pass my exam (i mean is it all syllabuscontents included in your lecture and notes?) if i study those properly?

    Your lectures are great and easy to understand.

    Thank you

    • Avatar of John Moffat says

      The Course Notes and lectures contain enough to be able to pass the exam well.
      However you must get hold of a Revision/Exam Kit from one of the approved publishers – practicing questions is most important of all, and these books contain lots of questions to practice.

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