OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
Spread the word
If you have benefited from our materials, please spread the word so more students can benefit.
To help us keep materials up to do and add new content you can also donate
May 31, 2020 at 11:10 am
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.
John Moffat says
May 31, 2020 at 3:08 pm
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.
April 23, 2020 at 2:44 pm
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
April 23, 2020 at 5:06 pm
In practice it does not matter what you write (there are no rules).
However for the exam it is irrelevant anyway because although you are expected to understand what books are used you cannot ever be asked to write up the books.
April 25, 2020 at 11:20 am
Thank you for your kind reply sir.
April 25, 2020 at 2:49 pm
You are welcome 🙂
April 7, 2020 at 1:06 pm
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?
April 7, 2020 at 2:39 pm
Because the question only asks to go as far as preparing a trial balance. The trial balance is prepared before closing off the accounts to the SOPL.
August 11, 2019 at 4:35 pm
No it is not.
Watch the final part of this series of lectures of Books of Prime entry (part (d), because I summarise what all the books are in that lecture.
August 11, 2019 at 4:14 pm
Is receivables ledger a book of prime entry???
You must be logged in to post a comment.