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The books of Prime Entry (part c) – ACCA Financial Accounting (FA) lectures

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  1. Big thanks for great lecture John. Im looking through the chapters one last time before exam and I’ve always been confused in ledgers, day books, control accounts till that video. Bpp book doesnt exactly explain this system of making notes, recording ( without dr or cr), but thanks to you everything is clear to me now. Appreciate your work!!!

  3. Im the one who felt really confused at the very begining of double entry study among the different and need of the primary book accounts, ledger accounts and general accounts.

    they don’t even tell me what is their purpose just simply show the debit and credit,
    im done with that .

    Thanks sir ,
    it is really informative .

  4. Thank you sir for the lecture. I would like to draw a point that we also have come across previously when we are doing the double entry. Purchase and Sales are income statement items and all income statement items are to be balanced off without carrying it forward. However, you have shown the balance carry forward for both of the items in the nominal ledger that were created after books of prime entry. Would you do a little more explanation if it is fine with you? Thank you again.

    • If you look back at the earlier lectures on double entry, you will see that we balance off all the accounts (including the SOPL items), then prepare a trial balance, and then transfer the SOPL items to the Statement of Profit and Loss account.

      In this lecture I only went as far as the trial balance because what happens afterwards had already been explained in earlier lectures and is no different here.

  5. Hello sir, first of all, big fan here. Amazing lectures. We are writing PJ (purchase Journal) or SJ (Sales Journal) in the nominal or general ledgers. My question is say in the sales accounts why are we writing SJ instead of “receivable accounts”?

    I understand that SJ or PJ represents the source (book) where the figure comes from but as far as I know, we have to record the figure in the nominal ledger writing the name of the opposite book. Hence in the sales book, we write “receivable” and record $6,600

    Thank you.

  6. Hi John,thanks for the lecture.
    I had a doubt regarding how you closed off the account for expenses.Previously when closing those accounts we transferred the balance to Statement of Profit and loss but you havent done that for these accounts.Why is a that?

    • Ledgers is not primary book,
      but we make entries simultaneously when transaction is happened .

      The ledger is to trace the individual customer or creditor and we know how much they owed us or how much we owed them .

      Ledgers shows us the figure in total so we can know immediately what is the number,
      instead of check every transaction and do the math works.

      imagine,
      customer A and B each of them made thousand of transaction within a month.

      without the ledger,
      how would you check whether we are owed or they are owing us ?
      going through the primary books one by one will take your life to complete that traceback.

      with ledgers,
      we just simply go to their individual ledger account,
      and we see the figure in total .

      Efficient isn’t it ?

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