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Hello John,
I’m having trouble understanding how a monthly allowance as well as personal salary received is recorded. Is it an increase in income and therefore credited? Also, are miscellaneous expenses debited too?
Many thanks,
It depends who the allowance and salary are paid to. If they are paid to an employee then we credit cash and debit wages. If they are paid to the owner (and it is a sole trader) then we credit cash and debit drawings.
As far as miscellaneous expenses are concerned, we credit cash and debit miscellaneous expenses.
All of this is explained in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Hi Joanne,
Apologies I know this is not the forum for this question, however unsure of how else to connect. I am also studying the FA paper and wanted to know if you would like to be study buddies?
I have posted on the FA forum within opentuition, please reply here or there and hopefully we can connect.
Apologies again, I know this is not the space for that, I am studying alone and it is very helpful to bounce queries off another student
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