I have to say though, I have somethings for you to clear regarding Prepayments that is slightly confusing me, although you have said you would cover more on it later on, but I have a simple issue.
First of all, did you mean to say $12,000 insurance for the entire year instead of $1200 ? Because you mentioned $3000 for the first 3 months.
Secondly, if $3000 has been used up, shouldn鈥檛 the balance $9000 be recorded as Prepayment – as that is the amount yet to be used up, and that would be like Service to be yet Receivable.
What I was meaning is that maybe we have already paid $3,000 for the first 3 months of next year. That would mean we had overpaid and therefore have a prepayment.
However, be patient – I explain accruals and prepayments in detail in Chapter 4.
I got the very importance concept today, the definition of drawing and different between wages.
The example of the non-current and current liabilities also helpful , before this i really can’t tell where should i categorize the installment of a non-current loan, now i got a basic concept .
I have a question in this lecture. You mentioned that anything the owner draws out from the business is “withdrawl” Even her mother gets something it will be counted as “drawing”. Understood. Now what if the owner says that he is giving his days and nights to the business and wants to withdraw a salary on monthly basis in lieu of his services provided to business. So will it still be counted as withdrawl or we can adjust it in expense as a fixed salary. Otherwise, he would have to hire someone to do the same work and will have to pay a salary.
I do stress in the lecture that for a sole trader anything the owner takes is called drawings – whatever he/she calls it, or whatever the reason for taking it.
lakshmi123says
Thank you sir for this class your language was simple so it catch easily
Dear All, I am just starting the ACCA course and noticed that there was a lot of terminology in the first chapter. I had wanted to ask if other students thought there was a lot of terminology all the way through or if once we got a basics, we come across the same terms through out most of the course? (Basically, I am going to learn a ton of new words or will the basics take me all through?)
Thank you so much for your lectures John Moffat. I have passed the FA exam with higher distinction and I got a certificate of achievement in FA from ACCA. Your work is highly appreciated, you are one of the best lecturers I have ever seen.
kakooza says
Sir I’m a bit confused, when we subtract drawings from capital the next day we still record the same amount of capital . I thought it should reduce
John Moffat says
We record capital and drawings separately until the end of the year, and at the end of the year the drawings are subtracted from the capital.
Ismonalizoda says
Thank you very much, you are the best teacher
John Moffat says
Thank you for your comment 馃檪
cosmore says
GREAT STUFF
John Moffat says
馃檪
hermela says
Sir i have a question… if the business owner pay for his workers is that drawing or expense?
John Moffat says
An expense.
Cosmosomadina says
Expense Sir
John Moffat says
Yes, and expense as I wrote before (and as I explain in the lecture).
jonathan1989 says
I like the pace,it makes it simple and clear,am following every bit of it God bless you.
John Moffat says
Thank you for your comment 馃檪
desilvaandrew says
if the owner takes a monthly salary, does it go under drawings ?
salmanislam74 says
No. It goes under expenses on profit or loss statement.
salmanislam74 says
Sorry my mistake. In sole trader, if the owner takes money its drawings.
neno87mk says
Very clear and precise
John Moffat says
Thank you 馃檪
zhujunyan says
I cannot watch the video, so saaaaaaaaad
John Moffat says
Some people manage to get round the block in China by using a VPN.
tabethchadzuka says
thank you for the lecture, truly enlightening
John Moffat says
Thank you for your comment 馃檪
Asif110 says
Hello sir, fantastic lecture !
I have to say though, I have somethings for you to clear regarding Prepayments that is slightly confusing me, although you have said you would cover more on it later on, but I have a simple issue.
First of all, did you mean to say $12,000 insurance for the entire year instead of $1200 ? Because you mentioned $3000 for the first 3 months.
Secondly, if $3000 has been used up, shouldn鈥檛 the balance $9000 be recorded as Prepayment – as that is the amount yet to be used up, and that would be like Service to be yet Receivable.
Thanks
John Moffat says
What I was meaning is that maybe we have already paid $3,000 for the first 3 months of next year. That would mean we had overpaid and therefore have a prepayment.
However, be patient – I explain accruals and prepayments in detail in Chapter 4.
tkhue3296 says
I got the very importance concept today,
the definition of drawing and different between wages.
The example of the non-current and current liabilities also helpful ,
before this i really can’t tell where should i categorize the installment of a non-current loan,
now i got a basic concept .
2 more steps closer .
Ogola4 says
It was an outstanding lecture
John Moffat says
Thank you for your comment 馃檪
HeshamTimar says
your lectures are awesome thank you too much
John Moffat says
Thank you for your comment 馃檪
sahl says
Thanks for the lectures.It is very simple and can easily follow through.
Thanks open tuition.
John Moffat says
Thank you for your comment 馃檪
kandiero says
Enjoying and understanding the lectures.
umar8775 says
I have a question in this lecture. You mentioned that anything the owner draws out from the business is “withdrawl” Even her mother gets something it will be counted as “drawing”. Understood. Now what if the owner says that he is giving his days and nights to the business and wants to withdraw a salary on monthly basis in lieu of his services provided to business. So will it still be counted as withdrawl or we can adjust it in expense as a fixed salary. Otherwise, he would have to hire someone to do the same work and will have to pay a salary.
rosegonza4@gmail.com says
Simplified,thank you
John Moffat says
You are welcome 馃檪
Lilianofu says
Hello Sir, please i have this same question in mind but i cant seem to see your reply here. could you send it again please?
John Moffat says
I do stress in the lecture that for a sole trader anything the owner takes is called drawings – whatever he/she calls it, or whatever the reason for taking it.
lakshmi123 says
Thank you sir for this class your language was simple so it catch easily
John Moffat says
Thank you for your comment ?
livingbodies says
I really love the pace of the Instructor.
I really love the simplicity in his approach.
This is great.
John Moffat says
Thank you for your comment 馃檪
jwang8 says
the lecture is brilliant, thank you so much.
John Moffat says
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nuruh2019 says
This is the most helpful examination site of all iv ever visited.
Thanks alot guys
John Moffat says
Thank you for your comment 馃檪
n_attafuah says
Dear All, I am just starting the ACCA course and noticed that there was a lot of terminology in the first chapter. I had wanted to ask if other students thought there was a lot of terminology all the way through or if once we got a basics, we come across the same terms through out most of the course? (Basically, I am going to learn a ton of new words or will the basics take me all through?)
John Moffat says
Most of the terminology is in the first few chapters 馃檪
Alfaty says
Thank you so much for your lectures John Moffat. I have passed the FA exam with higher distinction and I got a certificate of achievement in FA from ACCA.
Your work is highly appreciated, you are one of the best lecturers I have ever seen.
John Moffat says
Thank you for your comment, and many congratulations on passing the exam ?