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The Statement of Financial Position and Income Statement (part a) - ACCA Financial Accounting (FA) lectures

154 Comments

  1. ACCASuhani
    Sir, over here, are we studying the consolidated statement of financial position?
  2. John MoffatTutor
    Consolidated statements are dealt with in a later chapter.
  3. Sunflower
    so liabilities and payables are the same thing??
  4. John MoffatTutor
    Liabilities are amount owing to anyone.

    Payables are amounts owing to suppliers.
  5. Sunflower
    okay thanks sir!!
  6. Kerlene
    Thank you for the lecture.
  7. Zohrab
    Thank you for lecture
  8. Salmane
    Hello,
    Thank you for the cours.
  9. Hung
    Thanks, sir. The lesson was really helpful, despite English not being my mother tongue. I was able to follow everything you taught
  10. Kimberlie
    when would you be writing?
  11. Samuel
    Thanks for the amazing lecture
  12. Samuel
    Thanks for the lecture
  13. Mubiana
    why was profit for sale on credit recorded before revenue was realized
  14. Mubiana
    isnt recognizing a sale on credit as revenue received before it actually its realized mark to market accounting if not whats the explanation for that effect
  15. John MoffatTutor
    Income is recorded when sales are made, not when the cash is received. Similarly expenses are recorded when expenses are incurred, not when the cash is paid.

    This is known as Accrual Accounting and is the standard way of accounting under International Accounting Standards (and is explained in the lectures).
  16. JangSupporter
    Thank you, sir. It is easy to understand clearly.
  17. Joseph
    Well illustrated lecture for a beginner. Thank you sir.
  18. Sagar
    Sir why was the drawings not subtracted from Profit?
  19. John MoffatTutor
    As explained in the lecture, the drawings do not affect how much profit the business makes. They reduce the amount owed to the owner on the SOFP.
  20. Abdirahman
    Is drawing subtracted for submision of capital and profit or it can reduce single one
  21. Susan
    Greetings Mr John Moffat. Thank you for taking the time, this is much appreciated. For i) statement of profit/loss, how did you arrive at Sales of 5,200?
  22. John MoffatTutor
    Are you watching the lectures in the correct order??

    It is the balance from the sales account (2,400 cash sales and 2,800 sales on credit).
  23. Ram
    sir what will the final profit
  24. John MoffatTutor
    That what appears in the statement of profit and loss - have you watched all the lectures for this chapter?
  25. Sagar
    2000
  26. Asif
    Greetings respected Sir John Moffat.

    Is there any point where the capital amount/account itself reduces as well ? Let’s keep withdrawal a/c to the side.
  27. Melissa
    Thanks so much for these fantastic videos you have taken the time to produce, with thorough explanations.
    Just one query - for part (j) when the company receives half the amount owing to it on credit, why doesn't the profit then go up by (half of 3000) 1400? Or is this amount already accounted for in receivables?
    Apologies - this is my first day starting ACCA!
  28. John MoffatTutor
    The sale (and therefore the profit) is recorded as soon as the sale is made, not when the cash is actually received.
  29. Asif
    Greetings respected Sir John Moffat.

    Is there any point where the capital amount/account itself reduces as well ? Let's keep withdrawal a/c to the side.
  30. Sourabh
    Hi Sir, Lots of love from India. Loved the explanation in this video!
  31. John MoffatTutor
    Thank you for your comment :-)
  32. Emmanuel
    The lacture was well explained i jst cnt wait to sit and paying extra attention to it one more time
  33. Ravi Ranjith Kumar
    Thanks, Sir, it's an obvious explanation.
  34. Daili
    Dear sir,
    I'm not sure what the capital is, why is it listed on owe's side? I searched it on google and it said the capital can be any financial assets that is used. If it belongs to assets, it should be on own's side.
  35. John MoffatTutor
    Capital is money invested in the business (by the owner in the case of a sole trader, and by shareholders and long term borrowings in the case of a limited company). (Capital assets is another term for non-current assets.)

    All of this is explained in our free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
  36. Abdelhalim
    Great instructor...thanks a lot...
  37. Ziggy
    Thank you so much for doing this professor! Best wishes for you and your team.
  38. John MoffatTutor
    Thank you, and best wishes to you also :-)
  39. SIMONE
    Good day, regarding the electricity (expense) both the cash and the profit went down. Why didn't the expense only reduce the profit and not both cash and profit?

    Thanks in advance
  40. John MoffatTutor
    Because they paid money out of their cash for the electricity bill.
  41. Abdullahi
    These lectures are lovely jubbly. I am not a candidate but I qm considering that. Thanks a lot.
  42. John MoffatTutor
    Thank you for your comment :-)
  43. Tariq
    Many thanks ?
  44. NGWATO
    The lectures are very effective and have a good flow building better understanding. Thank you very much
  45. John MoffatTutor
    Thank you for your comment :-)
  46. simunika
    well explained
  47. John MoffatTutor
    Thank you for your comment :-)
  48. Tooba
    really helped me a lot
    Thank you so much
  49. John MoffatTutor
    You are welcome :-)
  50. 楚晓
    thank you a lot?
  51. John MoffatTutor
    You are welcome :-)
  52. kushna23
    Well explained
  53. Swiss
    Why Is it that when we partially pay a payable the profit does not change and instead the cash position changes, but when we pay electricity the profit goes down? Are they not the same? Both an expense in running the business? or is it something to do with direct and indirect costs? Thanks in advance
  54. John MoffatTutor
    The expense against the profit is the expense for the period in question regardless of whether or not it was paid during the period (or whether it was still owing at the end of the period and therefore paid in the next period).

    If we use $100 worth of electricity this month, then it is an expense in this month even if it is not paid for until next month.
  55. Wasim
    Thank you for your support... really understand it well...Thanks Open Tuition...asking if I do FFA,FBT and FMA will I get certificate...and when is the deadline for this syllabus exam...
  56. Haruna
    I just started doing ACCA . Thanks for the lectures. They are making my life simple a lot of thanks
  57. John MoffatTutor
    Thank you for your comment :-)
  58. Habeeb
    nice video
  59. John MoffatTutor
    Thanks :-)
  60. Baker
    Thanks so much for this lecture, looking forward to doing the exam as soon as I cover the whole syllabus
  61. John MoffatTutor
    Thank you for your comment.
  62. Musa
    Thanks a million times
  63. John MoffatTutor
    You are welcome :-)
  64. Abdul Raqib
    Dear Sirs,
    i would like to thanks for your support
    the above lecture was very suitable
  65. John MoffatTutor
    Thank you for your comment :-)
  66. Ei Shwe Sin Kyaw
    Thanks a million, sir! This lecture is very effective for self-study learners like me.???
  67. John MoffatTutor
    Thank you for your comment :-)
  68. annie
    I can not open the vedio
  69. John MoffatTutor
    I am guessing that it is because YouTube is blocked in your country. Many do watch the videos using a VPN.
  70. Shafiqullah
    it was so interesting for me and i understood all about it thanks alot.
  71. Hermela
    Great lecture sir, its very clear ...
  72. Tiffany
    Amazing lecture!
  73. John MoffatTutor
    Thank you for the comment :-)
  74. Michelle
    Awesome lecture.
  75. John MoffatTutor
    Thank you for the comment :-)
  76. Aurelie
    Wow. Loved the lecture. Everything is simple with your explanation. Thank you for breaking it down for us.
  77. Nyasha
    Waw that was fun, surprisingly. I love the examples. It was very basic and easy to explain. The fact that I'm a sole trader, everything looked so clear. Thanks so much
  78. John MoffatTutor
    You are welcome :-)
  79. urfee
    honestly the tutor has a great voice and very clear accent . i love to be his student and learn as mush as i can
  80. John MoffatTutor
    Thanks a lot for the comment :-)
  81. Blessings
    Yes, the clear accent is very much appreciated.
  82. MohamedSupporter
    Great tutor. Logical presentation. You just need to listen once. And all clear.
  83. John MoffatTutor
    Thank you for your comment :-)
  84. Jay
    HI John

    Can you point me to the lectures which handle preparing basic financial statements, I am doing the BPP questions and I am not sure if this lecture is relevant.
  85. John MoffatTutor
    It depends whether you are asking about sole traders, limited companies, or consolidations.

    The lectures are a complete free course for Paper FA and should be watched in order. Just as if you were attending a face-to-face course it would not be sensible to turn up just for random lectures :-)
  86. Daksh
    Sir I am really thankful to you for giving these lectures. I'm just starting with ACCA and have decided to prepare from OpenTuition.
    I just wanted to ask that will all of these lectures in all subjects be applicable for all of the exams?...or like there are changes from year-to-year?

    Thanks again.
  87. John MoffatTutor
    The ACCA reviews the syllabuses every summer. Where there are changes our notes and lectures are changed also.
  88. Maxamed
    I enjoyed for you explanation, I feel impress and ready to continue my study. thank you.
  89. charlene19
    Hello Mr. Moffat,

    Thank you for the explanation. Really helpful and well detailed

    One question, on top of the lectures + exams papers, would you recommend text book as well for the studying online ACCA

    Thank you in advance for your response.

    Charlene19
  90. John MoffatTutor
    There is no real need for a textbook, but it is essential that you buy a Revision Kit from one of the ACCA approved publishers.
    The kit is full of exam standard questions for practice, and practice is vital to passing the exam.

    You cannot obtain past exam papers because the ACCA does not publish them for Paper FA.
  91. Leena Yassin
    It's very useful
    Thanks.
  92. John MoffatTutor
    Thank you for your comment :-)
  93. Kok Hue
    Honostly,
    John really giving a very explicit example which i think exceeded other similar courses.

    I tried other materials to study FA1 and that took me almost 4 months to complete ,
    lots of confusing concepts and web errors ,
    that really a nightmare for me.

    I can't tell what actually those relationship and how they are affecting each other before taking Jhon's lecture,
    now i much more concious what is happening and it only took Jhon 40 mins to clear all those cloud which blinds me for months,
    im stunnded .....

    I doubt myself 40 mins ago,
    and I love accounting now.

    Thank you .
  94. John MoffatTutor
    Thank you for your comment :-)
  95. Asif
    That 40min is 40yrs of teaching experience for you ! :)
  96. John MoffatTutor
    Thank you for your comment :-)
  97. Asif
    That 40min power comes from 40years of sir’s teaching experience :)

    Very well made video, sir !
  98. SHAH
    sir you are doing a greath efffort for many students like me. We request to put more lectures of Acca . Thankyou
  99. John MoffatTutor
    Thank you for your comment, but our lectures are already complete free courses for all of the ACCA exams.
  100. Paul
    Good one
  101. John MoffatTutor
    Thank you for your comment :-)
  102. Nason
    Hey kindly email your me on
  103. John MoffatTutor
    If you have a question then please ask in the Ask the Tutor Forum.
  104. Fumane
    Thank you so much for the simplified lecture. I am happy I have found this before my July exam.
  105. John MoffatTutor
    Thank you for your comment :-)
  106. kandiero
    Well explained thank you
  107. Thulaganyo
    I am thrilled to have joined this lecture, everything is said out well and can be easily comprehended??
  108. John MoffatTutor
    Thank you for your comment :-)
  109. Ngomusa Cheryl Yeni
    I would like to find out if there are lectures that are IAS specific? I can see a few, but for example IAS8" IFRS13 etc. Please kindly help.

    By the way, this is my first day on this platform and already my morale is greatly boosted having watched just 2 lectures so far!
  110. Ngomusa Cheryl Yeni
    Oh.. I made a search on the general website and found the IAS 8 being covered under CIMA F1 lectures.

    Mhh.. this is uplifting indeed:)!
  111. Maede
    This lectures are just great,smooth and useful
    Tnx a lot
  112. John MoffatTutor
    Thank you for your comment :-)
  113. chisomm
    Beautiful lecture.
  114. John MoffatTutor
    Thank you for your comment :-)
  115. mokotoane
    I am unable to find the tutorial videos i saved.where will i get them?
  116. John MoffatTutor
    You can only watch them online and you can find them by looking at the main Paper FA page (click on 'ACCA' in the top bar and then on 'FA').
  117. fhv1234
    Hi I don't seem to understand the last parts where you check on the profit( I don't understand where those figures come from) kindly explain
  118. Huda
    I have a question on H( the business pays$600 of the amount owing) does on account means on credit ?
  119. John MoffatTutor
    No it means on account of the amount they owe (i.e. they are making a part payment of the amount owing).
  120. Huda
    okay understood,thank you
  121. John MoffatTutor
    You are welcome :-)
  122. David
    Great lecture and study notes I have finding these broken down lessons very easy to digest. Thank you again.
  123. John MoffatTutor
    Thank you for your comment :-)
  124. Taurus
    I have a very basic question, I am having trouble choosing a calculator which will be accepted in my exam. I am currently using casio FX-991ES. If there is any other calculator I should be using, please do tell me. Thanks.
  125. John MoffatTutor
    For Paper FA, and basic calculator will do. For later exams you need a scientific calculator, but again any will do (provided it only displays numbers and no letters).
  126. tanimu
    Sir you have given me more understanding of some key concepts
  127. John MoffatTutor
    Great :-)
  128. pratikshapoudel
    I passed all my exams around 8 months back, and I owe a huge part of it to this man and Opentuition.com
  129. John MoffatTutor
    Many congratulations, and thank you very much indeed for your comment :-)
  130. pratikshapoudel
    Thank you sir.
  131. midu1
    it's very interesting
  132. jwang8
    thanks for the lesson
  133. John MoffatTutor
    Thank you for the comment :-)
  134. kwakuayisa
    Extremely good lecture. Simple breakdown of a key concept
  135. John MoffatTutor
    Thank you for your comment :-)
  136. chaulab
    Very nice Lecture, understood as whenever I think on preparing The statement of Financial Position - early so called Balance sheet and Statement of profit or Loss, I should take into mind the concepts what will be the effects of business transaction "what a business own and owes"
  137. John MoffatTutor
    Thank you for your comment.
  138. saalimomar143
    i have been taking this paper years but i didn't catch it up like this thank you sir.
  139. John MoffatTutor
    You are welcome :-)
  140. sophsoph
    Super thank you for that
  141. John MoffatTutor
    You are welcome, and thank you for your comment :-)
  142. John MoffatTutor
    tindi: Thank you very much for your comment :-)
  143. tindi
    Well explained. The step by step approach works very well for me given accounting is a new domain for me.
    Thank you very much.
  144. John MoffatTutor
    agathar: Thank you for your comment :-)
  145. agathar
    Well explained and well understood. Thank you
  146. notadoctor
    Continually impressed by the quality of this lecturer.
  147. lakshmi123
    Kathie sold goods with a list price of 18500 to Martha on 22 may 20X0 Katie allows a trade discount of 15% what accounting entry should Katie make in the statement of profit and loss account to record the total receivables in respect Sir please answer this question how could I solve this problem
  148. John MoffatTutor
    Please ask questions like this is the Ask the Tutor Forum and not as a comment on a lectures.

    The entries for this are explained in the lectures on IAS15.
  149. Garvit
    Great :-)
  150. John MoffatTutor
    Thanks for the post :-)
  151. sovannaryyy
    It's really helpful.
  152. fahimababirye
    very good lecture
  153. Indhresen
    SUPER SUPER LECTURE
  154. John MoffatTutor
    Thank you for the comments :-)

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