The only 'rules' are those outlined in our lectures (and we do not classify accounts as being personal, real, or nominal).
S
Sushansh·
I wanted to appreciate your efforts for providing quality education for free you're modules are truly help full just had one doubt in my mind related to this chapter for ease of understanding can we apply 3 golden rules of accounting here and also in double entry bookkeeping debiting and crediting the account depends upon the type of account like personal , real and nominal
D
Dilshodbek·
Explanation is so good. Literally could not understood this topic for weeks. This video explains all easily.
J
John MoffatTutor·
Thank you for your comment :-)
P
PortiaKhwekhwe·
Thank you for the lecture Sir, everything is clear and concise. Very helpful indeed!
R
Raj Shekhar·
Hi Mr John,
Why do we c/f the balances in Purchase and sales T account? Don't we close SOPL t accounts by transferring the balances in SPOL rather than carried forwarding them?
J
John MoffatTutor·
We first carry forward to balances (and then prepare a trial balance) and then we transfer them to the SOPL. This is all explained if you watch all of the lectures working through this example.
W
waseem·
Dear John Moffat, trust you are well. Just wanted to let you know i passed my FA Exam with a mark of 85%, thanks your lectures and notes contributed to this!!! A big thank you. Kind regards. Waseem cassim. South Africa
J
John MoffatTutor·
That is great news. Many congratulations :-)
M
mrx1·
sir in previous lectures you said if Im not wrong trial balance(statement of profit and loss) shows income and expenses to calculate profit
but in this lecture i see capital, asset(car) which is suppose to sofp if im not wrong can clarify a bit thanks
M
Mai Anh·
I really appreciate your lectures, the way you teach is really detail and understandable. I think not only me but other people who watch your video finds it really helpful. Thank you a lot for all the knowledge that you bring to us ?
Janice
M
Mai Anh·
I really appreciate your lectures, the way you teach is really detail and understandable. I think not only me but other people who watch your video finds it really helpful. Thank you a lot for all the knowledge that you bring to us ?
Janice
J
John MoffatTutor·
Thank you for your comment :-)
C
Chukwuedo·
Thank you for the well detailed teaching.
Sir, Please must purchases, rent capital, payables, receivables have different account?
J
John MoffatTutor·
Yes - they mush have separate accounts.
L
Leslie·
Hi Mr Moffat, I hope that you are well.
I was wondering why the inventory/purchases were not credited were sales were made by Kristine?
This is what I did to account for the sale of inventory. How is it wrong?
Before sales
Inventory account
DR Bank 500
DR Payables 600
After sales
Inventory
DR side: Bank 500 and Payables 600
CR side: 550 COS and 550 COS
Cost of sales account
DR 550 Inventory 550 Inventory
N
NajibaSupporter·
Dear John Moffat,
Thank you for lecture, quite enough helpful to understand topic.
Could you please correct me if I am wrong for section of two or more errors' opposite effect: There is 1800 credit balance, not cancelling out (net effect is not zero)
M
MoegiSupporter·
Hi, thanks for the lecture always.
I have one question why not all accounts are balanced?
For example, capital account's debit and credit is remained as not balanced (same thing to car/ rent/ drawing).
J
John MoffatTutor·
As I explain in the lectures, if there is only one figure on the account then there is no need to strike a balance separately - the one figure is the balance.
M
md·
thank you for your great work. in the example where net effect of two or more mistakes is zero, i am wondering if the sales is supposed to be 1600 instead of 3400. or may be i am on the wrong side
J
John MoffatTutor·
The sales are 1,700. If they were entered on the wrong side then one side would be too low by 1,700 and the other side would be too high by 1,700. That would make one side higher than the other by 3,400.
M
md·
thanks for your reply
T
tasha·
Good day Sir. I have the same concern with ADINIGHT. I read your reply but my concern remains. For the trial balance of the Sales, Cash and Car accounts given in the example at 20:38 minutes of the lecture to have a net effect of zero, the sales account should have a Credit balance of 1 600 instead of 3 400.
With a 3 400 credit balance, the trial balance for these three accounts does not have a net effect of zero:
DR CR
Car 100
Cash 1 500
Sales 3 400
1 600 3 400
If we consider the example as part of the previous exercise, the net effect of the trial balance wouldn't still be zero.
C
cugochukwu·
Thank you very much sir.
Well understood
K
Kok Hue·
Can't imagine how difficult it is for accountant to figure out an error in thousand of accounts.
terrifying isn't it haha
K
kandiero·
Thank you
S
Suraj Nagesh·
"They asked me to check the trial balance, this is before calculators. It shows how old i am" XD haha..
Thank you for being passionate enough to lecture us on accounting sir. Though not many people comment their thoughts. You have the gratitude of many people for these lectures and the assistance on Forums.
J
John MoffatTutor·
Thank you for your comment :-)
P
prabhabisht·
Capital was 5000 but she withdraws 100, so in Trial balance capital should be 4900 ? but in your lecture it says 5000
P
prabhabisht·
sorry understood my mistake.
J
John MoffatTutor·
I am pleased that you now understand it :-)
D
dommett·
All very usefull modules for 1st time study.
Thanks.
J
John MoffatTutor·
Thank you for your comment :-)
J
John MoffatTutor·
They are both explained in later lectures on control accounts.
The lectures cover everything needed to pass the exam well, but it is not possible to cover everything in one chapter :-)
Why do we c/f the balances in Purchase and sales T account? Don't we close SOPL t accounts by transferring the balances in SPOL rather than carried forwarding them?
but in this lecture i see capital, asset(car) which is suppose to sofp if im not wrong can clarify a bit thanks
Janice
Janice
Sir, Please must purchases, rent capital, payables, receivables have different account?
I was wondering why the inventory/purchases were not credited were sales were made by Kristine?
This is what I did to account for the sale of inventory. How is it wrong?
Before sales
Inventory account
DR Bank 500
DR Payables 600
After sales
Inventory
DR side: Bank 500 and Payables 600
CR side: 550 COS and 550 COS
Cost of sales account
DR 550 Inventory 550 Inventory
Thank you for lecture, quite enough helpful to understand topic.
Could you please correct me if I am wrong for section of two or more errors' opposite effect: There is 1800 credit balance, not cancelling out (net effect is not zero)
I have one question why not all accounts are balanced?
For example, capital account's debit and credit is remained as not balanced (same thing to car/ rent/ drawing).
With a 3 400 credit balance, the trial balance for these three accounts does not have a net effect of zero:
DR CR
Car 100
Cash 1 500
Sales 3 400
1 600 3 400
If we consider the example as part of the previous exercise, the net effect of the trial balance wouldn't still be zero.
Well understood
terrifying isn't it haha
Thank you for being passionate enough to lecture us on accounting sir. Though not many people comment their thoughts. You have the gratitude of many people for these lectures and the assistance on Forums.
Thanks.
The lectures cover everything needed to pass the exam well, but it is not possible to cover everything in one chapter :-)