Balance Sheets | Statement of Financial Position | The Basics

[@itzz.aj._]

ever since online classes came into fusion especially at the beginning of form 4, I never really understood poa. it was like that for almost 2 years....now I can confidently say I am understanding the basics and foundations a lot better. Thanks Sir I'm working hard to do well come May 9th 😤 and I know I will do well with your help Sir :)

[@adapttuition]

That’s excellent 😊 super happy to hear that you are finding the videos helpful! You can do it, I believe in you! Keep up the good work💪🏽🧠

[@itzz.aj._]

5 months later and results came out. I got 7 distinctions and a grade 1! I went from a grade 5 to a distinction in poa!! Heartfelt and sheer gratitude to Sir here for creating these videos, rlly breaking it down and explaining from scratch. Thank you Sir! Those of you who are failing accounts rn, don't worry. You have time. If I can go from a grade 5 to a distinction in only 5-6 months using the content on this channel...You can as well!!

[@adapttuition]

Hey, Alkar :) That is amazing!!! Congrats on your grade 1! You worked hard and deserve your success! I'm happy to know that you found my videos helpful. Keep up the good work and best of luck in the future!

[@itzz.aj._]

@@adapttuition tysm Sir! :)

[@hannahhaytasingh6309]

Congrats, God bless you❤💯

[@ariszeenabasir10b83]

I literally write poa in 3 weeks time and my foundation is not there for the subject hopefully these videos help .... btw they do

[@adapttuition]

Wishing you all the best 😊 Ideally you should have a foundation but sometimes when the exam comes you can skate by with knowing the later topics. But recently the topics on the paper have been all over the place. So do what you can and give it your best effort!

[@DoraDee2000]

believe me when I say, we enjoy your lesson and I'm loving studying ACCA so much. thank you so much for your help.

[@adapttuition]

Happy to hear that! Keep up the good work!

[@nakasliviey2113]

i really appreciate your services and may the good lord bless you for me

[@nakasliviey2113]

Am a CPA student doing financial accounting and quantitative techniques and i really want to pass , but with your services am very sure i will make it. am doing ma papers in july

[@adapttuition]

You’re very welcome 😊 Happy to hear that you’re finding the content helpful 👍🏽 Keep up the good work 💪🏽🧠

[@adapttuition]

I appreciate you too 😊 Blessings to you as well.

[@josephsikazwewilombe7081]

You're a definitely mad teacher. Excellent tutor. Just watched your second KZbin video today. Am an accounts assistant

[@adapttuition]

Hi @josephsikazwewilombe7081 Thanks for the compliments, I really appreciate them 👍🏾😊 And, thanks for watching. Best wishes to you!

[@claudiavickers1299]

Because of you I'm deff getting a One in POA this year.

[@adapttuition]

You got this Claudia!

[@SanduMagdalenaN-jv3nz]

Love you mr Chris you really help me with my exam guess what today iam going to write principles of accounting..i really understand your tutor

[@adapttuition]

So happy to hear that you found the videos helpful! Best of luck in your exam tomorrow😊 Let me know how it goes

[@saarakambonde1447]

Thank you soo much. Was struggling with depreciation . Will be using your videos as a guidance

[@adapttuition]

Happy to hear that you are enjoying the content and learning from it. I haven't put out a video on depreciation specifically but there are videos where I deal with it (both the straight line method and the reducing balance method). Keep up the good work 💪🏾🧠

[@Barokimistari]

Thank you so much teacher. I have learned a lot.

[@adapttuition]

Glad to hear that

[@sonyasanchez5138]

Sir I have a poa exam today and I hope your video helps me today. Thanks regardless!

[@adapttuition]

Good luck, Sonya! Let me know how it goes 😊

[@nowherestore11]

I personally recommend your tutorials. I will appreciate if you can make a video on balance sheet with accrued, prepaid and depreciation

[@adapttuition]

Thanks very much! I really appreciate that 😊 Guess what! I am currently editing that exact video you mentioned. It will contain accrued and prepaid revenues and expenses, the provision for bad debts and the current liability section A separate video will be done on the non-current asset section which will deal with depreciation. 😊

[@nowherestore11]

@@adapttuition WOW 😳 🙏 I'm grateful. Stay blessed

[@adapttuition]

You too! Thanks 😊

[@tshyasookram4458]

Glad to see you back Sir!! Awesome video! God bless

[@adapttuition]

Thanks Tshya! Good to see you too! Thanks for the support 😁

[@nancywalters-belle23]

Sir Chris, I love, appreciate, and understand your way of teaching, Sir . I am getting to writing the exams, God's willing June- July 2024, and your videos are helping me.

[@adapttuition]

Super happy to hear that, Nancy! Keep up the great work 💪🏽🧠 You got this 😊❤️

[@jaynation1251]

thank you so much sir I have learned a lot. I will use the first format of the balance sheet.

[@adapttuition]

You are most welcome! Glad you found the content helpful :)

[@wetboss762]

I just have to tell you how amazing you are i never like POA because i didn't understand it but you break down everything to make me understand your amazing keep it up thanks alot sir

[@adapttuition]

Happy to hear that you found the content helpful and interesting! And, yes, I totally understand that if you don’t understand something you wouldn’t like it. And breaking it down into pieces is a very helpful technique, I use it even when learning new things myself. Keep up the good work! Feel free to ask questions 😊 I believe in you! You can do it 💪🏽

[@Uhraine-Miller]

Good to see you back sir 💪🏽

[@adapttuition]

Glad to be back! Thanks for the support :) Much love to you and yours!

[@Moon_.268]

Thank you for helping me understand because I didn't understand a thing when my teacher taught me this

[@adapttuition]

Happy to know that you found the content helpful :) Keep up the good work 💪🏾🧠 Yeh, sometimes the way a teacher communicates isn't necessarily understood by all students. So it's good to have other sources of info :)

[@breannaharry4042]

I like how you put subtitles, was a very helpful video.

[@adapttuition]

Hi, Breanna 😊. Happy to hear you found the video helpful! Yes! Subtitles help a lot! Keep up the good work 💪🏽🧠

[@johanneslimbi2898]

Mr. Chris thanks once again.

[@adapttuition]

My pleasure Johannes! thanks for watching :)

[@QuaceMontego]

You have really helped me in this Topic. Thank You So Much❤️❤️❤️❤️❤️

[@adapttuition]

Happy to hear that you found the video helpful 😊 Keep up the good work 💪🏽🧠

[@beverlygilalta]

Good afternoon I am enjoying your lessons thank you and I am sharring Keep It Up

[@adapttuition]

Hi Beverly 😊 Happy to hear you’re enjoying he videos 😄 Thanks for sharing and keep up the good work 💪🏽🧠

[@trinityhamied]

greatttt video! Love the motivation at the end too ;)

[@adapttuition]

Glad you liked it Trinity 😊

[@mercymkambe2676]

Lemme try working this and then will tell you if I got it. However, your video is very help, easy to understand. Thank you🙏

[@adapttuition]

Did it work?

[@mercymkambe2676]

@@adapttuition yes it work but now I have a question with sales and drawings, I have no clue where those go

[@adapttuition]

Sales is a revenue and goes in the income statement (as the first item) and not in the balance sheet. If you look at the balance sheet videos in the playlist you’ll see that I dealt with drawings and where it goes.

[@mercymkambe2676]

@@adapttuition okay lemme go check for the one dealing with drawings. Basically I should jus leave out the sales

[@adapttuition]

Sales is for the income statement, not the balance sheet. In the income statement we calculate net profit/loss which makes its way to the balance sheet. The video dealing with drawings in the balance sheet also shows this.

[@sharonsiziba9547]

Great tutor indeed

[@adapttuition]

Thanks very much, Sharon 😊 Happy to hear that you found the video helpful! Keep up the good work 💪🏽🧠

[@shania4628]

Im learning it so much easier than i did at school an im wondering if u also do principle of business

[@adapttuition]

Hi Shania :) Happy to hear that you're finding the videos easy to understand. I don't have many PoB videos as I'm more interested in PoA, Maths, & Add Maths and my content is geared mainly toward those subjects.

[@shania4628]

@@adapttuition thank you an ill be checking out ur maths videos next

[@adapttuition]

Hope you find them helpful 😊

[@nakasliviey2113]

thank you at least now i know how to prepare abalanced sheet ,, i didn't know that it is supposed to balance all the time

[@nakasliviey2113]

is it okay if i try out some numbers i send them to you

[@adapttuition]

Hi! Happy to hear that you understand the concept now 😊

[@jacobphiri1944]

You are the best.

[@adapttuition]

Much appreciated, Jacob 😊 Thanks for watching 👍🏽 Happy to know you’re enjoying and learning from the content. Keep up the good work 💪🏽🧠

[@zidanedaniel5697]

Big up you sir on me getting my 2🙏🏾🙏🏾🥳

[@adapttuition]

Congrats on your achievement! You worked hard and proved what consistent effort can do. Never forget that, and never give up :)

[@georgenasampson7853]

thank you soooo much for this

[@adapttuition]

My pleasure 😊 Glad to know you’re finding the content helpful!

[@nahliaumrigar6010]

Sir, so I did this mock exam however it had only 2 columns for us to utilize not 3 as you've shown in the working capital example. Can you help me out with that, please?

[@adapttuition]

Hi, I'll see what I can do. I'm supposed to take a break from video making for a bit to focus on my exam classes but I'll see if I can squeeze in this one.

[@tishaunageorge4840]

I was told that format is what cxc really marks for I'm nervous

[@adapttuition]

Hi Tishauna :) If the question asks you for a specific format and you don't follow the instructions then you won't get the maximum marks possible. However, if the question doesn't specify the format you are free to use any format you know. I would always recommend the vertical format as opposed to the horizontal format. And, of course it's either going to be in order of permanence or liquidity. What they are really looking for is if you can classify the assets and liabilities correctly. As in, you put each type of item in the correct section. Current assets in the current assets section Non-current assets in the non-current assets section. Current liabilities in the current liabilities section. Non-current liabilities in the non-current liabilities section. And, deal with the capital calculations correctly. So practice as many as you can but don't panic. You got this :)

[@s_beatriceabena.]

Please help me on how to treat interest in capital and drawing in the income statement

[@adapttuition]

Hi :-) You should check the videos in this playlist kzbin.info/aero/PL9u_QIMhElluUfYtC6xoM73R2UVPOQNTS Specifically the appropriation account video

[@shaniquereid588]

My teacher taught me that I should have current liabilities first, non current liabilities second and the capital last. Will CXC mark me down to follow his format?

[@adapttuition]

Hi 😊 There is no one right format for a balance sheet There are several acceptable formats If however the question asks for a specific format and you do not give it then you will not get full marks. You will be given marks for whatever you have that is correct.

[@shaniquereid588]

Ok thanks

[@adapttuition]

Happy to help

[@chedvahlombe8694]

Hi there, do you mind making a video on the cash Flow Statement

[@adapttuition]

Hi! I’d love to but I have a list of topics I’m working my way through and that one is unfortunately quite a way down. Sorry about that

[@deandria4463]

@@adapttuition hey sir, are you going to do a break down of the retained earnings statement?

[@adapttuition]

Hi! That’s on the to-do list but not near the top unfortunately. A statement of retained earnings sort of resembles the appropriation account You start with the balance at start, add net profit for the period, subtract dividends and transfers and then you get your closing balance There are other details but I don’t think they apply at the CAPE level.

[@deandria4463]

@@adapttuition Ok, Thank you. That explanation really helps!!

[@adapttuition]

Happy to be of service I would always recommend further research to see what you find. Online and textbooks, from multiple sources.

[@gavainemcdowell6208]

What about if the question ask extract a balance sheet showing only the Capital and Liabilities?

[@adapttuition]

Sure, you can do just those two sections only. Unless they specify how to present it (permanence or liquidity) you are free to use either method.

[@elikhuman3778]

Uhhh😩, so I used the format in the textbook b4 u explained the different methods and got the capital in ur trial balance for 1000000😑. I paused the video and tried it b4. I comprehend that u said there are more than one way to do it but now I'm discombobulated. Like which method is accurate during the exams. I'm currently self tutoring using the textbook(principal of accounts for the Caribbean) and wasn't aware of the change in definition. I'm watching ur videos as guidance. So what else has changed? Are these methods now mandatory and the old method obsolete? Help☺️

[@adapttuition]

😄 as I said in the video and as you said in your comment there is more than one way to do a balance sheet. The underlying concept of what the balance sheet communicates does not change. If the question doesn’t specify a particular format then use anyone you wish. If they do specify a format then you need to use that one. Unless the formats in the textbook are the horizontal format (left and right split instead of top and bottom like in the video) then they’re not obsolete.

[@elikhuman3778]

@@adapttuition kool

[@MarhandaJames]

Do you have a video on ledgers and t accounts?

[@adapttuition]

I have videos on double entry and those show a lot of t-accounts

[@davidsonchinedu2292]

You are really good sir, please I have a more complex question I want you to explain to me

[@adapttuition]

Hi Davidson 😊 Happy to hear that you’re enjoying the content. Right now I’m focusing on my family as both my wife and stepson are ill and we also have a 3 month old baby in the house. So I can’t promise that I’ll have time right now to assist. Sorry 😕 I hope you are able to find some help though.

[@davidsonchinedu2292]

@@adapttuition but I saw a question that has legal and professional expense

[@adapttuition]

Expenses incurred go in the income statement

[@davidsonchinedu2292]

But additional info says legal and prof expense include solicitors fee for purchase of new freehold land during the year

[@davidsonchinedu2292]

And is even the confusion

[@ItsMe_Kai1075]

sir but doesn't a balance sheet has net book value and accumulated depreciation?

[@adapttuition]

Not all the time, it depends on the level that the students are at.

[@astrovoid3835]

29:01 you say it’s order of permanence but current liability came before non current here, I don’t understand

[@adapttuition]

Hi, this is the format that shows working capital (current assets - current liabilities) which is something that they can specifically ask for. The non-current assets are before the current assets and on the lower half of the balance sheet the capital is before the non-current liabilities. Hope that helps.

[@chewemutale3677]

Plz do a video on suspence accounts

[@adapttuition]

Already done 😊 kzbin.info/aero/PL9u_QIMhEllvNgNs2TjcOHjARtfMe5VVN

[@devaughnglanville5]

nice vid

[@adapttuition]

Thanks for watching 😊 Let me know if you have any questions

[@Pixe-gv6tt]

sir for Balance sheet my teacher says the capital must go last cause that is the end result im confused

[@adapttuition]

Hi 😊 There are different layouts for the balance sheet They are all based on some version of the accounting equation (also called the balance sheet equation) Assets = Capital + Liabilities Or Assets - Liabilities = Capital Some questions only give you assets and liabilities and that will necessitate having capital last as you will need to find it. In other cases you will have capital and then you are more or less free to use whichever layout you want. There are multiple ways to present a balance sheet. Hope this helps

[@Pixe-gv6tt]

@@adapttuition ok thank u so much sir

[@adapttuition]

You’re very welcome!

[@rehemananyinza3821]

How can you handle depreciation in a financial statement

[@adapttuition]

Hi Rehema, you can check out this first link to see how to handle depreciation in the income statement - kzbin.info/www/bejne/iGLUpqGoaLKiedE And, you can check out this link for depreciation in the balance sheet - kzbin.info/www/bejne/gaXRi2eKi7JohLs

[@sjo780]

Can you balance sheet with net book value and accumulated depreciation

[@adapttuition]

Hi 😊 There’s a video in this balance sheet playlist that covers that. Here’s the link Balance Sheets | Statement of Financial Position | Depreciation & Non-current assets kzbin.info/www/bejne/gaXRi2eKi7JohLs

[@bwashibrahim5987]

can we get the solved example of balance sheet that includes adjustments ,kindly answer me brother

[@adapttuition]

Hi! If you check out the entire balance sheet playlist you’ll find other videos that might help with your request.

[@rakshagopaul204]

sir i not seeing d balance sheet handout on your site, is it free?

[@adapttuition]

Once it’s on the website it’s free to download. I’ll have a look but I’m now gonna start a class so it’ll have to be later

[@rakshagopaul204]

@@adapttuition ok no probs

[@astrovoid3835]

How do you know what something is financed by?

[@adapttuition]

Hi, the business needs assets/resources. These need to be financed, i.e. paid for. The money to pay for them comes from two possible sources: - the owner via capital, and - creditors via liabilities. Hence the accounting equation: Assets = Capital + Liabilities The balance sheet can be presented in different ways to show this. You can present the assets on top and then show the capital and liabilities below. Or you can use the net asset presentation which shows assets - liabilities on top and capital below. Hope that helps.

[@rakshagopaul204]

i did not know that capital does be before d liabilities in order of permanence

[@adapttuition]

Yes :) Capital is more permanent than liabilities. The owners "sink" their investment into the business and take out profits as a way to reward themselves/pay themselves back. So their investment stays, but they reap the rewards. The liabilities have to be repaid, principal and interest.

[@rakshagopaul204]

@@adapttuition noted

[@kevingeorge7100]

Poa is tm an i really need help rn

[@adapttuition]

Hey Kevin 😊 So, my channel has 16 years worth of past paper questions and many tutorials teaching topics from scratch. Take your time and go through them. But pace yourself, don’t go all night as you need sleep.

[@cassandra.ach06]

i love you

[@adapttuition]

😊❤️🙏🏽

[@vanessatoussaint8147]

Hi,do u tutor students?

[@adapttuition]

Hi Vanessa, You can check my website for details www.adapttuition.com My form 5 poa classes are Mondays and Wednesdays from 4:00pm - 6:00pm

[@cassandra.ach06]

where the resources coming from? meh mami??

[@adapttuition]

Maybe 😊

[@rookminsingh2884]

non current assets = fixed assets

[@adapttuition]

Hi @rookminsingh2884 :) That's correct!

[@Dankroid]

17:50 well grenada road pothole worse XD

[@adapttuition]

😂 Have you been to both Trinidad AND Grenada to test your hypothesis?

[@Dankroid]

@@adapttuition well not exactly, but dang its bad lol

[@adapttuition]

😅

[@jeneewallace3744]

I genuinely need help

[@adapttuition]

Hi Jenee :) That's why I put up these videos, so that ppl can help themselves. If you have any questions you can leave them in the comments section. Good luck!

[@empsiemanual6117]

2:45 It comes from China

[@adapttuition]

Many things are made there, that’s true.

[@kimberlymukamba7482]

If accounting was a person, it would have been chris

[@adapttuition]

😄 thanks for the awesome comment Kimberly. Wishing you all the best 💪🏽🧠

[@kimberlymukamba7482]

@@adapttuition lol you're welcome and thank you

[@adapttuition]

My pleasure 😊

[@IvwananjiNakamba-n3z]

Z

[@adapttuition]

α

[@jasonknight4656]

i feel you wrong ih boss

[@adapttuition]

Ok 😊 Wrong about what specifically though?

[@jasonknight4656]

​@@adapttuition nevermind, i thought you were wrong bc i was taught something different but i realized you were right. thank you for helping us students especially since cxc is around the corner :)

[@adapttuition]

You're very welcome, Jason :) Wishing you all the best!

[@s_beatriceabena.]

Please help me on how to treat interest in capital and drawing in the income statement

[@adapttuition]

Hi, you should check my partnership playlist or specifically the appropriation account.