ACCA F3 Double Entry Bookkeeping (part b)
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Hi,
Would office supplies be considered current assets or expenses?
Many thanks
The office supplies used are an expense.
Any still in inventory at the end of the period are a current asset.
Hey john,
Drawings were $100 in example but I think by mistake you put $500 in Withdrawal ledger . Because you carried down $100 in SOFP and Capital account that made me confused. I’ll be grateful for your assistance. Thanks
You were not listening carefully enough. The drawings were 100 and when I changed it to 500 I was simply explaining the sorts of mistakes that the bookkeeper could make.
Thanks for your assistance.
Dear Sir,
how else could we name the Income statement account when closing off the T accounts?
Thank you,
Rustam.
Why do you want to name it something else?
When we present the actual financial statement we call it the “Statement of profit or loss”
Thank u soooo much sir.
Where s the tougher quistions to practice this chapter ?
First, there will be very few questions (if any) in the exam that test basic double entry – it is not a double entry exam (computers can do that these days 🙂 ) – although it is essential to understand double entry.
It is impossible to ask ‘tough’ questions until the later chapters.
Second, although we do have a few test questions after each chapter (and also a full mock exam), you must buy a Revision Kit from one of the ACCA approved publishers. They contain lots of exam standard questions to practice on.
Thanks sir
Just a question to understand the concept better. If there is a payment through check/ post dated check or purchase order for a certain amount where do we record the transaction ? How do we classify those transaction ?
Thanks for your assistance.
Regards
Akila
First, purchase orders are not recorded in the t-accounts. (If a company uses purchase orders, they will no doubt keep a record, but any record is not part of the double-entry).
Payments by cheque (it will be spelt ‘cheque’ in the exam) will be recorded in exactly the same way as cash. A company will have two cash accounts – one for ‘loose’ cash, and one ‘cash at bank’ account for payments and receipts through the bank account (including cheques paid and received). Some companies make no payments in ‘loose’ cash and so will just have one cash account.
The idea of having two cash accounts is dealt with in later chapters/lectures, as is the reconciling of the cash at bank account to the bank statement (and how cheques are dealt with).
Thank you John. I shall complete the chapters as said and if I have clarifications I shall get back to you.
Have a pleasant evening.
Thanks
akila
Hi! Thank you for your lectures. I just wanted to clarify something. Are closing entries made every month or is it made at the end of every accounting period?
In practice it is up to the company to decide how often. They must be done at the end of the accounting period, but many (if not most) companies do them at the end of each month as well.
Thanks for the lecture…. I give it you best online teacher of our time.
wow your lecture is soo interesting and easy to grasp. sir please note the withdrawals figure is still showing 500. so when you were doing your tiding up bit i couldn”t follow it. however, now I understand from your comments that you deliberately changed it at one stage and left it. So should I read withdrawals as 100?
I studies F3 with Kaplan but your lectures are so well explained.
Thank you very much.
Good evening Mr Moffat
I also found this a little confusing, could you please explain why you reduced it to 100 and when we might need to make the same amendments?
Many thanks in advance
I have scrolled do n and read the explanation you gave to Shahena. Disregard my question.
Thanks
Is it appropriate to transfer the balances on Income Statement items to Income Statement instead of opening Income Statement T A/C? E.g. Rent A/c being debit bal could be written as transfer to Income Statement while closing it off.
I do sincerely appreciate you.
There must be a debit and a credit – an income statement t-account is necessary. (Although the exam will contain little testing on pure double entry)
We’ll the explanation was very helpful… I just had a doubt .. What was striking me to forward .. How did withdrawal change from $500 to $100 … Capital $ 5000 + profit (I/S) $400 – withdrawal $ 100 ??? M
You were not listening carefully enough 🙂 The drawings were 100 and when I changed it to 500 I was simply explaining the sorts of mistakes that the bookkeeper could make.
Hello, Sorry i’m just confused how you determine what goes into the income statement and what goes to the balance sheet. Please can you explain a bit more on that.
Thanks
Have you watched the earlier lecture on Chapter 2 of the Course Notes?
It is in that chapter that I explain what the Statement of financial position, and the Statement of profit or loss are showing.
Grt lecture, its very easy understand thank you.
Thank you 🙂
Hi Sir
balance c/d of this year is balance b/d of next year. is it true?
That is true 🙂
Hello Sir,
Thank you for this helpful lecture.
I know that the Statement of Financial position did balance off nicely but I think I was attentive to the lecture and know how did the $ 500 withdrawals come up. But I wanted to know whether this error is going to cause problems later on.
Thank you.
Regards,
Priya
You were not listening carefully enough. The drawings were 100 and when I changed it to 500 I was simply explaining the sorts of mistakes that the bookkeeper could make.
Thank you:)
Thanks 🙂
Thanks very much Tutor, You rock
Thank you 🙂
Oh,sorry, Mr. Moffat,I am poor in English.
Comparing with other lectures,you give many examples to make us understanding easily.Thank you.
I am misunderstanding the attribute of the lecture,because it is interesting and useful .
it’s easy to understand . Can you tell more realistic way to deal with ledders.
I am guessing you mean ledgers?
What do you mean by more realistic? These lectures are dealing with what you need for the exam – there is more about using ledgers in the chapter on Books of Prime Entry.
where did the 500 amount on the withdrawal ledger come from i thought the drawings were to be 100 because thats what kristine withdrew from the business. please help didnt understand where the 500 came from.
You were not listening carefully enough – I was explaining the sort of mistake that the bookkeeper might make. See the other posts below.
Thank you Mr. Moffat excellent explanation … You are the best I have ever come a cross. Top teacher ???? LIKE.
Thank you 🙂
it’s so easy to understand and apply. thanks!