After listening to all lectures of chapter 1 and 2, i went through practice questions. The practice questions for chapter 2 contain 5 questions to be solved on computer. What i noticed was that these questions seem a bit untouched in lectures such as opening net asset or closing net asset or question no 5. Is it because the lectures are outdated or i have to better understand the topics.
Thanks for very peciouse lectures, i learned alot. these are comprehensive yet very simple to understand
The lectures are certainly not outdated – they are reviewed every three months.
The questions you refer to are covered in the lectures. If you look at examples 1 and 2 at the end of chapter 2 in the lecture notes (and the lecture that works through them) then there should be no problem with them (Opening net assets simply means net assets at the start, and closing net assets simply means net assets at the end)
Of course I explain what it is – it is another word for ‘sales’ or ‘turnover’.
If your are referring to the accounting standard then again of course I explain in later lectures.
Why are you asking? If you watch our lectures in order then they go through everything you need to be able to pass F3 well – they are a complete course.
sorry, question 3 page 14, i got confused question 3 page 14 at the part where it said 31st August and 24the december 2007. I wasn鈥檛 sure if I should鈥檝e calculated by (960 x 5) or (960 x 12)
The purpose of a statement of financial position is to show a clear and definite estimate of what the business is really worth. Is that statement correct sir?
No – it is not correct. (For example, the non-current assets are unlikely to be worth the amount that is shown in the statement).
I assume you are asking because of the test question at the end of the chapter. The answers to all of the test questions are at the end of the lecture notes – the contents page will tell you which page.
Hello, many thanks for ensuring that someone like me have access to this lecture. Please could you help me, to explain test question 3 on page 14 of the course note.
The profit for the year is 30,600; there is capital introduced of 7,200; and there are drawings of (12 x 960) + 840 = 12,360.
Using the accounting equation you can then calculate the increase in the net assets over the year.
You know the net assets at the end of the year (64,800) so if you subtract the increase over the year you can calculate the net assets at the start of the year (1 Feb 2007).
(The answers to all the tests are at the end of the course notes).
sorry, i do realise it, but i got confused at the part where it said 31st August and 24the december 2007. I wasn’t sure if I should’ve calculated by (960 x 5) or (960 x 12)
Please help, I try to solve the question 1 of page 14 of Chapter 2 and I missed it. I choose “D” but the correct answer is “A”. Please can you explain why?
Thank for the quick response to my question, I really do appreciate.
Could you please explain further, what net asset is? because am a little bit confuse about closing net assets and opening net assets… am new to this please.
The lectures are what we cover on a 5 day course and cover more than enough to be able to pass the exam well. We do not claim to deal with every single topic in the syllabus nor do we claim to replace a Study Text.
The exam will contain very little on either corporate governance or on the conceptual framework (and what is needed is covered within other lectures and lecture notes anyway). All of the examinable IFRS’s are covered in the lectures (most are still referred to as IAS’s) in chapters 5, 7, 9, 13, 14, 19, 20, 21, 22, and 27 of the lecture notes (and the lectures that go with them)!
The Statement of financial position does not try to show the ‘true’ value of a business. The main reason is because of the non-current assets. In the example statement on page 9 for example, land and buildings are shown at 100,000. This will be what we paid for them (although as you will see in a later chapter, in fact we reduce that amount gradually and call it depreciation). They might however be actually worth a lot more than 100,000 – buildings usually tend to go up in value (or of course they could be worth less).
All the statement does is list all the assets and liabilities, but again it does not show the ‘true’ value.
Here is an extended trial balance extract: Initial trial Adjustments Accruals and Income Statement of balance prepayments statement financial position Dr Cr Dr Cr Accruals Prepmnts Dr Cr Dr Cr
Cell 1 Cell 2 Cell 3 Cell 4
AT PT
AT = accruals total PT = prepayments total To where should AT and PT be transferred?
A- AT to Cell 3; PT to Cell 4 B- AT to Cell 1; PT to Cell 2 C- AT to Cell 4; PT to Cell 4 D- AT to Cell 2; PT to Cell 1
The answer at the back of the notes is correct – but the letter is wrong.
Accruals appear in the Statement of financial position – cell 4. Prepayments appear in the Statement of financial position – cell 3
(Please do not ask these questions under a lecture for F3 – it confuses everyone. I know there is no Ask the Tutor Forum for FA2, so please ask them in the FA2 forums)
arslanliaqat106 says
http://www.youtube.com鈥檚 server DNS address could not be found. sir this error show when i open a lecture plz tell me whats problem
John Moffat says
Please ask on the support page, and admin will help you (the link is above).
olowoniyi says
Please,what is the difference between the statement of profit or loss and statement of financial position?
Thanks.
John Moffat says
This is explained in full in this and the previous two lectures. Have you watched them?
The SOPL shows how the profit or loss for the period, the SOFP shows the financial position of the business at the end of the period.
iyamu says
Great lectures and fantastic professionalism . Well done Sir.
John Moffat says
Thank you for the comment 馃檪
maryam1995 says
Hello
I am new student, so couldn’t find the questions which you mention in lectures page 14.
Thank you
rhinoetru says
how will u get an inventory value when a business achieve a 25% gross margin
John Moffat says
This is dealt with in the lecture on mark-ups and margins.
If you watch the free lectures in order then you have a complete course for Paper F3.
Abbas says
Dear sir,
After listening to all lectures of chapter 1 and 2, i went through practice questions. The practice questions for chapter 2 contain 5 questions to be solved on computer. What i noticed was that these questions seem a bit untouched in lectures such as opening net asset or closing net asset or question no 5.
Is it because the lectures are outdated or i have to better understand the topics.
Thanks for very peciouse lectures, i learned alot. these are comprehensive yet very simple to understand
John Moffat says
The lectures are certainly not outdated – they are reviewed every three months.
The questions you refer to are covered in the lectures. If you look at examples 1 and 2 at the end of chapter 2 in the lecture notes (and the lecture that works through them) then there should be no problem with them
(Opening net assets simply means net assets at the start, and closing net assets simply means net assets at the end)
ahsankhan9690 says
what does the terminology ” trading account ” means. page# 12
John Moffat says
The trading account is the top bit of the Statement of profit and loss (as far as the gross profit).
ahsankhan9690 says
thank u
John Moffat says
You are welcome 馃檪
Hussain says
Sir will you explain revenue in coming lectures???
John Moffat says
What do you mean by ‘explain revenue’?
Of course I explain what it is – it is another word for ‘sales’ or ‘turnover’.
If your are referring to the accounting standard then again of course I explain in later lectures.
Why are you asking?
If you watch our lectures in order then they go through everything you need to be able to pass F3 well – they are a complete course.
dovinhhien says
sorry, question 3 page 14, i got confused question 3 page 14 at the part where it said 31st August and 24the december 2007. I wasn鈥檛 sure if I should鈥檝e calculated by (960 x 5) or (960 x 12)
Thanks! Have a nice day.
mamzy says
The purpose of a statement of financial position is to show a clear and definite estimate of what the business is really worth. Is that statement correct sir?
John Moffat says
No – it is not correct. (For example, the non-current assets are unlikely to be worth the amount that is shown in the statement).
I assume you are asking because of the test question at the end of the chapter. The answers to all of the test questions are at the end of the lecture notes – the contents page will tell you which page.
Ayo says
Hello, many thanks for ensuring that someone like me have access to this lecture.
Please could you help me, to explain test question 3 on page 14 of the course note.
Thank you.
John Moffat says
The profit for the year is 30,600; there is capital introduced of 7,200; and there are drawings of (12 x 960) + 840 = 12,360.
Using the accounting equation you can then calculate the increase in the net assets over the year.
You know the net assets at the end of the year (64,800) so if you subtract the increase over the year you can calculate the net assets at the start of the year (1 Feb 2007).
(The answers to all the tests are at the end of the course notes).
Ayo says
Thank you
protoblade says
Hello, can someone guide me on how to do the Test question No 3. I can’t seem to understand it well.
John Moffat says
It is the accounting equation: increase in net assets = capital introduced + profit – drawings
The capital introduced is 7,200. The profit is 30,600. The drawings are (12 x 960) + 840 = 12,360.
So you can now calculate the increase in net assets.
You know the net assets at the end of the year (64,800) so if you subtract the increase then you know the net assets at the start of the year.
(I hope you do realised that the answers are at the end of the lecture notes)
protoblade says
sorry, i do realise it, but i got confused at the part where it said 31st August and 24the december 2007. I wasn’t sure if I should’ve calculated by (960 x 5) or (960 x 12)
Thanks John.
protoblade says
nevermind. i got it. 馃檪
Ayo says
Hello,
Please help, I try to solve the question 1 of page 14 of Chapter 2 and I missed it.
I choose “D” but the correct answer is “A”. Please can you explain why?
Thank you.
John Moffat says
You will know from the lecture that:
Increase in net assets = capital introduced + profit – drawings
So…closing net assets – opening net assets = cap int + profit – drawings
If you subtract cap int from both sides, and add drawings to both sides, you get:
closing net assets – opening net assets – cap int + drawings = profit (which is answer A)
Ayo says
Thank for the quick response to my question, I really do appreciate.
Could you please explain further, what net asset is? because am a little bit confuse about closing net assets and opening net assets… am new to this please.
Thanks
Ayo says
I have go through it all over again, I understand it perfectly well now.
Thanks.
Hanish says
Hi. Where’s Coporate governance, IASB conceptual frameworkand IFRS in F3 ? I’m not being able to find it 馃檨
John Moffat says
The lectures are what we cover on a 5 day course and cover more than enough to be able to pass the exam well. We do not claim to deal with every single topic in the syllabus nor do we claim to replace a Study Text.
The exam will contain very little on either corporate governance or on the conceptual framework (and what is needed is covered within other lectures and lecture notes anyway). All of the examinable IFRS’s are covered in the lectures (most are still referred to as IAS’s) in chapters 5, 7, 9, 13, 14, 19, 20, 21, 22, and 27 of the lecture notes (and the lectures that go with them)!
Hamayun Shah says
Dear sir
Where I can find answers of tests 1, 2, 3 Chapter 2 page No.14
John Moffat says
If you look at the contents page of the course notes, you will find that the answers to the tests are at the back of the notes.
abi01 says
Hi John
I was doing Question 2 of Test in Chapter 2 and I’m a bit confused. I chose A but the answer is D.Can you please kindly explain me this.
John Moffat says
The Statement of financial position does not try to show the ‘true’ value of a business.
The main reason is because of the non-current assets. In the example statement on page 9 for example, land and buildings are shown at 100,000. This will be what we paid for them (although as you will see in a later chapter, in fact we reduce that amount gradually and call it depreciation). They might however be actually worth a lot more than 100,000 – buildings usually tend to go up in value (or of course they could be worth less).
All the statement does is list all the assets and liabilities, but again it does not show the ‘true’ value.
Mahrukh says
Kindly help with this question
Here is an extended trial balance extract:
Initial trial Adjustments Accruals and Income Statement of
balance prepayments statement financial position
Dr Cr Dr Cr Accruals Prepmnts Dr Cr Dr Cr
Cell 1 Cell 2 Cell 3 Cell 4
AT PT
AT = accruals total
PT = prepayments total
To where should AT and PT be transferred?
A- AT to Cell 3; PT to Cell 4
B- AT to Cell 1; PT to Cell 2
C- AT to Cell 4; PT to Cell 4
D- AT to Cell 2; PT to Cell 1
John Moffat says
The answer at the back of the notes is correct – but the letter is wrong.
Accruals appear in the Statement of financial position – cell 4.
Prepayments appear in the Statement of financial position – cell 3
(Please do not ask these questions under a lecture for F3 – it confuses everyone. I know there is no Ask the Tutor Forum for FA2, so please ask them in the FA2 forums)
John Moffat says
The answers (and the workings) are at the back of the Course Notes – see the contents page to find which page they are on.
Julija says
Thank you very much
J
Julija says
Hello, please help!
Where I can find the answers to chapter 2questions, q3 I am during as mentioned in the comment above, but can’t get the answer c.
Please help.
Many thanks. J
Tako says
Julija,
Answers to Multiple choice tests you can find on page 195
gego says
From the Net asset at January 2008
Minus profit
Minus capital introduce
add withdrawal