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  1. Dear sir,

    There is a question in test, i.e what documents should accompany when payment is made to a supplier.
    And the answer is Remittance advice.

    Could you please give an idea of what is remittance advise and also a little explanation of what are supplier statement, purchase requisition and purchase invoice.

  2. are there rules of thumb which can be used to identify the functions of a book before we familiarise ourselves through revisions? For example suppose i was drawing up p&l if i had no prior experience i would be a bit confused about which figures to use for sales (made up of cash sales and credit sales (use the list of sales day journal total cash receivable book for cash sales).

  3. One very standard way of controlling is the imprest system of petty cash, whereby cash is drawn from the bank at regular intervals e.g. weekly, and the amount drawn is exactly equal to the amount spent during the previous week. As a result the balance is always ‘topped up’ to the same fixed amount, which fixes an upper limit on the amount that could ever be stolen.
    This is part of the notes, may you please explain it?

    • Maybe you decide to start with $50 in petty cash.

      During the first week you spend $10. That leaves $40. So the amount transferred from the bank is $10 – the float is back to $50.

      During the second week you spend $20 – that leave $30. So the amount transferred from the bank is $20 – the float is back to $50.

      and so on…..

  5. Good Day,

    appreciate the great help

    i just start reading the course notes after lessening to the lectures,

    – is it the proper way to go through the syllabus ?
    – where i can find the answers for the questions mentioned in the courses to check the accuracy of my initial answers.?

    so kind of you to revert

  6. I really appriciate your helps with all of these lecture videos.

    I have a question: at 16:20 I don’t get what he says. After determining cash 15.000, then what? And why is there a balance of 5.000 in Debit at the end?
    Thanks in advance.

    • This is just an illustration of the account – we are calculating the receivables at the end of the year.
      If total sales were 20,000 then we debit receivables with 20,000. If cash received from credit customers was (say) 15,000, then we credit receivables with 15,000.
      The end result (the balance) is a net debit of 5,000 – the total we are owed at the end of the period.

      • Thanks so much. But I am still confused. He adds a balance in credit right after sales, then makes total credit up to 20.000. If debit and credit are both accounted for 20.000 equally, the balance at the end of month should be 0, isn’t it?

      • There is a debit of 20,000 and a credit of 15,000.
        So a net debit of 5,000, which is what we end up with.

        The figure on the credit side is the missing figure, or the balance – we then carry it forward to the opposite side.

        I think it best if you watch my lecture on double entry to see how we balance of faccounts neatly.

  7. So it means cash book works as a book of prime entry and as a part of double entry system? At the end of the day’s transactions when we want to complete a double entry for Credit purchases, again we use cashbook as part of double entry system right?
    Dr Payable ledger control account
    Cr Cash Book

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