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Hi,
Can anyone help me please. I know how to do the double entry system and posting it into the relevant ledgers. I know how to balance them off as well. But I am confused as to whether to transfer to SOFP OR P&L. Which ledger balance figures transfer into the SOFP and which go into the P AND L.
Thanks
This is all explained in detail in my free lectures.
The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well. You cannot expect me to type out all of my lectures here 🙂
We never ‘transfer’ balances to the SOFP. The balances on income and expense accounts are transferred to the SOPL. The SOFP is a summary of the remaining balances (which represent assets and liabilities).
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