Management of Receivables and Payables Example 1

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View all ACCA Paper F9 lectures >> This ACCA F9 lecture is based on OpenTuition course notes, view or download lecture notes here>>

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  1. Avatar of Asim Asim says:
    April 29, 2013 at 12:54 am

    Hi, John…Really find your lectures extremely helpful and easy to understand. Though sometimes I feel that the questions in past papers are of a higher level of difficulty or are more complicated or require a deeper/more detailed level of understanding than is covered in the lectures… Just a feeling, maybe I am wrong…I mean no complaints :) I just want to be sure if these lectures with the notes are enough to pass the F9 exam (of course with exam questions practice) or would I also need to refer to a text book like BPP or Kaplan? Plus any guess for June 2013 F9 paper topics to give special attention to? :) Would appreciate your comments. Thank you for your time.

    • Avatar of johnmoffat johnmoffat says:
      April 29, 2013 at 10:43 am

      Although exam questions require more reading, the arithmetic is not more complicated and nor do they require a deeper level of understanding. The purpose of the lectures is to explain the topic and the approach – it is then important to practice as many past exam questions as possible. If you do have a text book, then the more reading the better, but our notes and lectures are enough on their own to pass the exam – provided you really do understand them and provided you practice lots of questions.

      That is why we have also started uploading recordings answering past exam questions – you can find the link to them on the main F9 page.

      Our guesses for the June exam were uploaded onto the main F9 page last week.

  2. Avatar of chiclarence chiclarence says:
    March 25, 2013 at 7:54 am

    hi, i have a problem understanding how part of question 2c of the december 2008 exam has been answered. the question on calculating the interst of the factor’s advance to the company: part of the question is:
    A factor has offered to take over the administration of trade receivables on a non-recourse basis for an annual fee of
    3% of credit sales. The factor will maintain a trade receivables collection period of 30 days and Gorwa Co will save
    $100,000 per year in administration costs and $350,000 per year in bad debts. A condition of the factoring
    agreement is that the factor would advance 80% of the face value of receivables at an annual interest rate of 7%.
    part of the solution is
    the receivables under factor = 37,400,000 x 30/365 = $3,074,000
    Extra interest cost on advance = 3,074,000 x 80% x (7% – 5%)
    the part i havent understood is how the interest is calculated. why (7% – 5%)
    can someone explained this to me pls

    • Avatar of johnmoffat johnmoffat says:
      March 25, 2013 at 5:02 pm

      It is because if they did not use the factor then they would be paying overdraft interest at 5%. Using the factor, they are paying interest at 7%, which is 2% more.
      I prefer the approach in my lectures – it will give the same final result and get the full marks.

  3. Avatar of hasanali95 hasanali95 says:
    January 21, 2013 at 12:50 pm

    Hi Sir,when i used the formula for percentage cost of discount i got 28% and the quick way gives 25%,is it ok to use the quick method or will it effect the answer?

  4. Avatar of shahbazalikhan shahbazalikhan says:
    January 14, 2013 at 9:31 am

    How can i download lectures Admin Plz guide me.as i cant see any download option on my pc, except on intro lecture..

  5. Avatar of raylene raylene says:
    January 4, 2013 at 1:41 am

    Good..but different with NTU..So…need to consider more…5.5.5…

  6. Avatar of snaik20071 snaik20071 says:
    November 18, 2012 at 5:59 pm

    Thanks for free lectures. They are very good and easy to understand but for some reason I am stuck on cost of discount example 1 chap5.
    Could somebody help me why cost of discount is 4/96*100 and for year calculation times by 12/2.

  7. Avatar of aelsewy aelsewy says:
    November 12, 2012 at 6:02 pm

    i love his way he is amazing tutor thanks alot OT team.:)

  8. Avatar of juanalonso juanalonso says:
    October 29, 2012 at 6:28 pm

    I just got a question watching the above video.
    When doing the Example 1 (chapter 5), shouldnt he apply the Annual cost of dicount formula: -1 +(1+ dto / amount recieved)^n

    As per the example: -1 + (1+ 4 /96)^6 = 27,75%
    He gets 25% as per his calculations

    Can anyone give a hand??

    Grand lectures btw!
    Juan A.

    • Avatar of johnmoffat johnmoffat says:
      October 30, 2012 at 7:05 am

      @juanalonso, Strictly, what you say is correct. However on the (only two occasions) there has been a simple discount in the exam, the examiner has accepted the ‘quick’ way, even though it is not strictly accurate.

  9. Avatar of meerarijal meerarijal says:
    July 8, 2012 at 10:45 am

    i have to go to a remote place for about a month where there is no access to the internet. Can anyone tell me if i can download these videos on a cd so that i can access it whenever i want even with the internet service? Thank you.

  10. Avatar of o_kaghembe o_kaghembe says:
    May 16, 2012 at 3:37 pm

    this is great. i wish i knew about it early.!!!!!!!

  11. Avatar of dawnjacque dawnjacque says:
    April 22, 2012 at 8:16 pm

    great lecturer!

  12. Avatar of mmariba2000 mmariba2000 says:
    April 17, 2012 at 11:10 pm

    Great notes Tutor on Receivables very easy to follow through I liked the effective interest rate example

  13. Avatar of aboobucker aboobucker says:
    March 9, 2012 at 2:52 pm

    nice 1

  14. Avatar of chris grant chris grant says:
    February 20, 2012 at 2:41 pm

    i am currently having a problem the player it saying “Server not found: rtmpt://r.acca.opentuitioncom.netdna-cdn.com:80/play”
    please tell me if this is on my end or Open Tuition website. need to know so i can get it fixed asap.
    thank you

  15. Avatar of asadraza asadraza says:
    November 9, 2011 at 6:16 pm

    just a feedback regarding the player:
    unexpectedly I closed the browser then I had to wait till the video is completely downloaded. Because the player wont allow me to jump to a point in video until the streaming is finished.

  16. Avatar of accapakistan accapakistan says:
    October 30, 2011 at 11:38 pm

    Please tell me why chapter4 is not included in these lectures. Waiting for a quick reply. I LOVE JOHN MOFFAT

  17. Avatar of merissa merissa says:
    October 26, 2011 at 4:04 pm

    this certainly answered some questions……thanks

  18. Avatar of praveenkaur praveenkaur says:
    September 26, 2011 at 5:37 pm

    Thanks a mil.

  19. Avatar of ntgiang ntgiang says:
    September 21, 2011 at 8:50 am

    this video have problem, it have been stopped in the middle of lesson.

    Please help me to solve it

  20. Avatar of kera kera says:
    April 24, 2011 at 1:48 pm

    Open tuition brings clarity to the subject area and gives me confidence in this paper.

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