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June 23, 2020 at 12:35 pm
Hi. The journal entries come easily to me. I however get confused with T Accounts. Is that normal and will it affect me negatively from the exam point of view if I am not great with T Accounts?
John Moffat says
June 23, 2020 at 3:31 pm
No. You cannot be asked to produce t-accounts in the exam 🙂
April 10, 2020 at 10:59 am
Hi John,thanks for the lecture. But I had a doubt regarding the ledger account in Example 4. When we create a ledger for payables we record the total value of 507600 but against with account.Because this entry has two debit aspects of Purchases and Sales tax.So what account name should we write against this total value of 507,600 in the ledger account.
April 10, 2020 at 2:41 pm
It doesn’t matter what you write against the amount in practice (and in the exam you cannot be asked to produce t-accounts 🙂 )
April 22, 2020 at 2:43 pm
Thanks for the reply
April 23, 2020 at 11:08 am
You are welcome 🙂
February 18, 2020 at 12:46 pm
Dear Sir I’ve a problem in this question & I hope to be get helped by your knowledge, “A business has an opening balance on the Sales Tax account showing a debtor of $590 and a closing balance also showing a debtor of $460”. My question is how to account for opening and closing balances in the Sales Tax account? I’ll be thankful for the act!
February 18, 2020 at 3:57 pm
The opening balance will be on the debit side of the account and the closing balance will be entered on the credit side (and carried down to the debit side as explained in my earlier lectures on closing off accounts).
September 8, 2019 at 8:17 am
Sir if the question is
5.2 The following information relates to Eva Co’s sales tax for the month of March 20X3: $ Sales (including sales tax) 109,250 Purchases (net of sales tax) 64,000 Sales tax is charged at a flat rate of 15%. Eva Co’s sales tax account showed an opening credit balance of $4,540 at the beginning of the month and a closing debit balance of $2,720 at the end of the month. What was the total sales tax paid to regulatory authorities during the month of March 20X3?
So here if we prepare the sales tax T ac than we should put closing debit balance of sales tax on the debit side right? but in bpp it is written on the credit side can you please explain why?
September 8, 2019 at 9:02 am
We put in the credit side because balances are always carried forward to the opposite side. When it is carried forward it will appear on the debit side.
Do watch the earlier lectures on double entry bookkeeping where I explain how we close off accounts and carry forward the balances.
September 8, 2019 at 3:10 pm
Thank you sir
September 8, 2019 at 4:05 pm
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