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March 29, 2021 at 12:00 pm
Hello, Can you please explain where do the adjustments of accruals , prepayments, depreciation and Irrecoverable and doubtful debts fit in this diagram? Are they done at the end of the month only or are they a part of prime entry also?
Also, can you please explain the Journal book of prime entry, what are things included in that?
John Moffat says
March 29, 2021 at 2:04 pm
They are not in the diagram because, as I explain in the lecture, the books of Prime Entry are a more practical way of completing the double entries explained in the earlier chapters. However we extract the trial balance after completing the entries and then everything (including the period-end adjustments continues as normal.
Those entries are done in the nominal / general ledger at the end of the period as explained in the earlier chapters, after the trial balance has been produced.
If a journal is being kept (which is unusual these days) then a note will also be made in the journal detailing the adjustments that have been made in the ledger.
As far as the relevant for the exam is concerned, this is explained in the next lecture (as is obvious from the title 🙂 )
February 19, 2021 at 3:37 pm
Brilliant lecture – it really cleared things up in my head – thank you so much
February 19, 2021 at 3:43 pm
Thank you for your comment 🙂
November 12, 2020 at 7:09 pm
One question, you said that maybe monthly they would do the double entry for the SOFP, so we take the totals every month.
I thought SOFP was done yearly, thats why we had things like Year end for SOFP is so and so in nearly all the questions. But then I also learn in other ACCA subjects that FS is to be submitted every 9 months for private companies, and 6 months for public companies if Im not mistaken. Why is all this, if calculation is on a year end basis ? Is SOFP produced monthly, 6 months, 9 months or 12 months ? In which course do we learn how to produce it for stated amount of months ?
September 15, 2020 at 2:51 pm
You can be tested on all three items, although you would be unlikely to get many questions on petty cash.
September 15, 2020 at 2:40 pm
Hi John, will the exam test us on the following objects?
reimburse ( repay employee for they have paid ) Petty cash vouchers ( money taken out in advance ) imprest and non-imprest system
By the way, John really knows what makes accounting newbie confused, he dig deeper on these confusing concepts, this is the real guru every student needs, faithfuly .
Im really glad that i have met OpenTuition, I consider it the biggest fortune i have found on Internet.
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