Sir, I just had a general question from this lecture. What is a Journal entry for payment of electricity bill through credit card? Do you open a new account for credit card or Credit bank account?
Assuming that the credit card is one that sends a monthly statement to pay, then you would credit an account for the credit card. (Some credit cards take the money directly from your bank account, in which case you would credit cash).
However, as I do say in the lectures, credit card transactions are not examined in Paper F3. The reason is that we are looking at businesses, and although some businesses do use credit cards, in most cases they are used by individuals (who might then claim from the business).
Sir, i have a doubt. The Foll. is a T- account- capital a/c. What should i understand when income statement is 400 and how do I know when to write this?
Capital a/c Drawings 100 Cash 5000 Income Statement 400 Balance 5300
In future please ask questions in the Ask the Tutor Forum – not as a comment on a lecture about something completely different 馃檪
In the exam you can not be asked to prepare t-accounts – sometimes they are useful in your own workings, but that is really all. The amount owed to the owner (the capital) increases due to any profit (from the income statement) and decreases due to any drawings. That is all that is happening here. You should watch the lecture on chapters 2 and 3 of the Lecture Notes where this is all explained.
hemraj123 says
Sir, I just had a general question from this lecture.
What is a Journal entry for payment of electricity bill through credit card?
Do you open a new account for credit card or Credit bank account?
John Moffat says
Assuming that the credit card is one that sends a monthly statement to pay, then you would credit an account for the credit card.
(Some credit cards take the money directly from your bank account, in which case you would credit cash).
However, as I do say in the lectures, credit card transactions are not examined in Paper F3. The reason is that we are looking at businesses, and although some businesses do use credit cards, in most cases they are used by individuals (who might then claim from the business).
manyanyato says
Just found the reason to be confident of finally getting going with ACCA. Great, engaging Lecturer. Excellent for self study 馃檪
anonymous says
Sir, i have a doubt. The Foll. is a T- account- capital a/c. What should i understand when income statement is 400 and how do I know when to write this?
Capital a/c
Drawings 100 Cash 5000
Income Statement 400
Balance 5300
John Moffat says
In future please ask questions in the Ask the Tutor Forum – not as a comment on a lecture about something completely different 馃檪
In the exam you can not be asked to prepare t-accounts – sometimes they are useful in your own workings, but that is really all.
The amount owed to the owner (the capital) increases due to any profit (from the income statement) and decreases due to any drawings. That is all that is happening here.
You should watch the lecture on chapters 2 and 3 of the Lecture Notes where this is all explained.
anonymous says
thanks so much Sir. I will make sure that qns are asked in the right place. 馃檪
divinemoyo says
i would like to buy lecture videos for F4 to F7 for December session,and use course notes from open tuition.
kindly advise if i can buy.
John Moffat says
Our lectures are free of charge, but can only be viewed online.
Buba says
it realy helps thanks
accakeisha says
thumbs up!!!!
cormac says
Great. Thanks.
createamess says
Where was this lecture done?
wardaip says
love the lecture!
usamahussain says
i have problum in solving bank recuncilation
ineza says
thank you sir
salamok says
so funny and interesting
imamuddin says
馃檪
3217452512asad says
very nice
tauraiversatile says
lovely
mdziaurrahman says
excellent
sweetsac says
Absolutely loved your rant about the cheques in Lithuania and the the American spelling of cheque! Bravo sir!
alim1111 says
very nice
mcrobert says
Thank You Very Much 馃檪
madhutiwari says
excellent