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Dear Chris
I have question if you don’t mind. While preparing financial statements in your video you divided workings part of the blank paper into four columns: narration, cost of goods sold, administrative expenses, selling expenses.
Did you do it only in order to solve the problem from free lecture notes or you did it also because you think that in real life when people are preparing financial statements they should do the same thing so that it is easier for people to calculate expenses when they have expenses arranged in four columns in scrape paper ?
Hi,
It is done to help answer exam questions and ensure that if you make a mistake then you will still get the own figure marks. So if you calculate the depreciation wrong (say) but correctly include your wrong figure in the working then you get credit for including it in the right place, cost of sales (say).
Thanks
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