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January 23, 2022 at 2:18 pm
John Moffat says
January 23, 2022 at 3:38 pm
You are welcome 🙂
January 19, 2022 at 2:07 am
Hi. If a share holder in a limited liability company (or a sole proprietor) decides to give the company money (to help with revenue expenditure) and money is repaid to the shared holder / sole proprietor at a later date, will that also considered to payment of dividend or drawing (in the case of a sole proprieter )?
January 19, 2022 at 8:29 am
No. It is a loan to the company which is then repaid.
January 1, 2022 at 9:40 am
I know you mention that if an owner takes money from they business its drawings but what if they also work for the business in a management position. Are they still taking drawings when they pay themselves say a monthly.
The other question is if someone who owns a stake in a company(for example 30%) and works can take a salary and also draw money from the business.
Look forward to hearing from you.
January 1, 2022 at 9:56 am
If it is a sole trader (i.e. not a limited company) then anything the owner takes is drawings, even if they do work for the business.
If it is a limited company then anyone working for the company is paid a salary and there is no such things as drawings. If they also own shares in the company then they will get paid a dividend. This is all explained in the later lectures on limited companies.
December 20, 2021 at 2:20 pm
Hi, sir what is the effect of return inward and return outward on statement of profit orloss
December 20, 2021 at 2:43 pm
They are both explained in a later lecture 🙂
December 14, 2021 at 3:39 pm
Knowledge is one thing but imparting it is to master the art of teaching. This is something very special that not many people can do. I aspire to be as good of a teacher as you. Everything is broken down and explained clearly as if we were 4 year olds. Richard Feynman would be proud. Who thought I would genuinely find a subject as menial as accounting so much fun. Absolute Godsend
December 14, 2021 at 4:03 pm
Thanks for your comment 🙂
January 17, 2021 at 8:33 am
Thanks for your great teaching
January 17, 2021 at 10:04 am
Thank you for your comment 🙂
December 29, 2020 at 7:07 pm
Flawless teaching ! Very grateful !
December 30, 2020 at 8:33 am
December 28, 2020 at 2:29 am
I have always struggled with these basic knowledge of accounting as subject but never took an active decision to learn them. As I am preparing for my March Financial Reporting exam, I planned to get my basics knowledge concrete. I find it more empowering to know actually what is going on in accounts. Makes me feel more confident. Thank you sir.
September 15, 2020 at 2:58 pm
Sir, you are the best finance and accounts teacher I have been blessed with. I am really grateful to God you as a teacher are there.
June 2, 2020 at 10:14 am
I’m from the island Jamaica and i must admit for a newbie, these lessons are very straight forward and got me hooked even more to accounting.
June 2, 2020 at 4:07 pm
October 7, 2020 at 2:29 am
April 15, 2020 at 12:24 am
Rent Received & Interest received is it not part of the trading account?
May 1, 2020 at 11:45 am
Can you help for this question?
Usefulness of indirect method for statement of cash flow for stakeholders?
May 1, 2020 at 6:39 pm
It helps them understand the relationship between the various financial statements.
February 6, 2020 at 10:49 am
Hi sir, so in terms of accounting the word “Purchases” means any good bought for resale.
In terms of accounting what would a purchase of non current asset be labeled ?
Thanks and kind regards.
February 6, 2020 at 11:11 am
Okay, please disregard the above.
I went through the next lecture and understood what you call the purchase of a non current asset.
A Capital expenditure.
You are the best finance and accounts teacher I have been blessed with. I am really grateful to God you as a teacher are there.
September 15, 2020 at 3:06 pm
February 1, 2020 at 11:50 am
When you are crediting and deducting from the right column, I don’t understand why you wouldn’t put the deduction as a minus. Such as;
Sales Rev – (110,000)
Gross Profit – 11,000
Expenses – (31,000)
Is this just an unspoken rule, that you would look at the header and automatically know, and/or is it up to the person who creates the FS P&L as you said it can vary depending on the company.
February 1, 2020 at 11:51 am
Apologies, summary should be:
Sales Rev – 180,000
Cost of Sales (110,000)
Gross Profit – 11,000
Expenses – (31,000)
Net Profit – 50,000
February 1, 2020 at 4:18 pm
Firstly, the layout in this lecture is for a sole trader – not for a limited companies (limited companies are covered in a later chapter and the layout of their financial statements is a little different and is dictated by law).
Second, you cannot be asked to prepare a set of financial statements in the Paper FA exam, but you could be presented with statements (or extracts from them) for either a sole trader a limited company in the exam, and so you should know how they are likely to be shown in the exam.
February 8, 2020 at 7:33 pm
OK, I think this is understood. Thank you
January 2, 2020 at 7:47 pm
Brilliant explanation, very easy to understand. Thank you!
January 3, 2020 at 7:16 am
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