Income statements with adjustments | Accruals and Prepayments | Principles of Accounts | CSEC PoA

[@julianawright6949]

i am literally crying right now...i have exams in less than two months and corona is preventing us from learning and online classes are not doing me any favour..and barbados hasn't decided to put of the exams and ive een having trouble with this..thank you soo much

[@adapttuition]

Hey 😊 I know it’s a tough time and I’m sorry that you’re not feeling great about it. It really is challenging for everybody involved and the decisions that need to be made are difficult. This situation is unprecedented; nothing like this has ever happened before (while CXC has been in existence) But, remember all the things that you have to be grateful for. A bed to sleep in, food on your table, family who love you, health, and anything else you can think of. Don’t let the exams worry you too much, we will figure out a way to get things done 😊 Always remember, you are wildly capable, but you need to believe in yourself, put in the work and of course be guided when you need it. I’m sure everything will work out and we will be able to move on past this situation. Stay safe and healthy. 😊

[@destinylove1844]

This is very great deatil im working pass papers where my teacher haven't explain these details...thank you very much

[@adapttuition]

destiny love you’re very welcome! It’s my pleasure to help. Are there any topics you’d like me to cover? Also, where are you from and when are you sitting the PoA exam?

[@samanthihaddegoda303]

I am from Sri Lanka reading for MBA and this is wonderful lesson series. thank you so much for helping others.

[@adapttuition]

Happy to know that you’re finding the content helpful 😊 Keep up the good work and thanks for watching 😊

[@tikkidupaincheng3230]

Oh sir, I am so thankful I found your channel, the way you explain things, it's so easy to understand and I actually understand the work more than I did before, in some cases I didn't even understand the work at all, once again thank you :)

[@adapttuition]

Happy to hear you’re finding the content helpful! Keep up the good work 😊

[@kevongajadhar2247]

I got a grade 2 for accounts sir, Knowledge/comprehension (A), Application (A), Interpretation and analysis (C) Keep up the good work and thanks for everything.

[@adapttuition]

Kevon Gajadhar congrats! I am very happy that you found my videos helpful. I wish you all the best in the future.

[@kevongajadhar2247]

@@adapttuition thanks once again, I also got a grade 1 for principles of Business with a straight A profile, keep up the good work wish everyone all the best for May/June 2020 and remember to stay focus. Hard work pays off, what you work for that's what you'll get.

[@adapttuition]

@@kevongajadhar2247 That's fantastic man! You keep up the good work too! And, best of luck with all your future endeavors!

[@kevongajadhar2247]

@@adapttuition it may not be easy but it sure Will be worth it.

[@adapttuition]

Kevon Gajadhar nothing worth having comes easily. Effort and struggle mean growth, and growth is what you want to happen.

[@wambuadaniel5735]

I'm from Kenya and am amazed by what I just learned

[@adapttuition]

Happy to hear that, Wambua! Keep up the good work 💪🏽🧠 And thanks for watching 😁

[@tonnysgalleries5848]

U have helped me a lot , love you brother

[@adapttuition]

Happy to help :)

[@daniellee6665]

Thanks for this video, helping my understanding of accruals and prepayment. So I learn that the receiver of the money or service provider perceives an amount of what expense his service had incurred. When a service like rent provides for the customer and incurs expenditure upon the provider, and when the rent provision finishes, the revenue, even though the service provider didn't earn the amount of the rent provision, will be required from the customer, and they are liable to pay for the expense the service had incurred.

[@adapttuition]

Happy you found it helpful :) Keep putting in the good work!

[@titusnguluka]

I have enjoyed the lesson.

[@adapttuition]

Happy to hear that!

[@trinityhamied]

going through this playlist once again, superrrrr helpful

[@adapttuition]

Really happy to hear you’re finding it helpful, Trinity! Keep up the good work 😊

[@kennedykawangu737]

Wow, this is so great stuff. I am an engineer and pursuing an MBA programme.... this has really helped me. Thanks sir.

[@adapttuition]

You’re very welcome 😊 where are you from?

[@kennedykawangu737]

@@adapttuition Am from Zambia. I would really appreciate if you could share something on statement of cash flows... still struggling in this area.

[@adapttuition]

kennedy kawangu will try to get that done. I have had a few requests for it but my video time has been decreased due to changes in my schedule because of the COVID-19 situation. I’m currently working to see how I can fix that to get back some more time to dedicate to videos.

[@christopherakodu5086]

Great teaching! Thank you!

[@adapttuition]

Glad it was helpful!

[@melanieb.pooran4413]

This helped me so much! I had no idea what I was doing until now

[@adapttuition]

Very happy to hear it helped! Is there anything else that you’d like to know about in PoA?

[@melanieb.pooran4413]

A Different Approach Tuition Limited Yes actually, the partnership accounts (appropriation part) give me problems as well. I tried looking for it on your page but I didn’t see it.

[@adapttuition]

Mel Pooran I’m actually doing partnerships in 2 weeks with my class. So I will be making videos to go along with my class. So definitely look out for those!

[@Ms.Meritza]

Thank you so much for this video, it's very easy to follow. I appreciate your videos sooooo much! 😇

[@adapttuition]

You’re very welcome Maritza 😊 Glad to know you’re finding the videos helpful! Keep up the good work 💪🏽🧠

[@Skopkomut]

Thank you! Very helpful!

[@adapttuition]

Happy you found the content helpful! Keep up the good work 💪🏽 Thanks for watching 😊

[@KizzyJames-w4p]

Hi love this channel need one on one

[@adapttuition]

Hi Kizzy, email me [e-mail] and we will see what we can do about the one on one

[@Coralinna-b7n]

Excellent video

[@adapttuition]

Thank you very much! :)

[@jotham8141]

thank you my indian teacher

[@adapttuition]

You're welcome. Hope you found the info helpful.

[@paballokolane6706]

Thank you!!

[@adapttuition]

Happy to help 😊

[@akbarabidkhan1224]

Sir u should make more videos. These are great

[@adapttuition]

Thank you, I will! It's been a bit more difficult than usual during these COVID-19 times but I've been able to start again thankfully :) Where are you from?

[@kennedykawangu737]

This is very great. It has helped me understand trading P&L statements. Please share something on statement of cash flows.

[@adapttuition]

kennedy kawangu I have added that to my list of videos to make. Due to the restrictions currently in place regarding COVID-19 my timetable has become a bit more crowded and my video making time is less than what I usually have. So it might not come out very soon. Thanks for your patience 😊

[@samanthasamuels7025]

Thank you so much, I now understand the concept

[@adapttuition]

Hey, Samantha! You're very welcome! I am glad you understand. Is there anything else you'd like to see a video for?

[@samanthasamuels7025]

Not at the moment

[@adapttuition]

@@samanthasamuels7025 , ok cool. If you can think of any please feel free to let me know :)

[@issei9003]

Good video sir, made me understand the concepts more clearly.👌👌👌 Quick question though where do we put the Accounts receivable and payable in the income statement.

[@adapttuition]

Hi! Happy to hear that you found the video helpful 😊 Accounts receivable and accounts payable are an asset and a liability respectively. As such, they go in the balance sheet (statement of financial position). The income statement contains revenues and expenditures, bit assets and liabilities. Therefore the accounts receivable and accounts payable balances would not be found in the income statement.

[@issei9003]

@@adapttuition thank you sir

[@adapttuition]

My pleasure 😊

[@eugenegenesis9357]

Amazing content quite helpful 🔥🔥🔥🔥

[@adapttuition]

Happy to hear that you found the information helpful :) Thanks for watching. Keep up the good work. I believe in you :)

[@nikhilkanade34]

Hi, its been long you have heard from me, and I loved this video, I do have exams tomorrow, so wish me luck, and this was really helpfull :))

[@adapttuition]

Best of luck! Let me know how it goes!!!

[@nikhilkanade34]

@@adapttuition It was hardddd :((

[@nikhilkanade34]

@@adapttuition all the practical part,i understoon, but 40 marks was theory, which i had problems with

[@millermufaya093]

WOOW cleat and straight forward😂...

[@adapttuition]

Happy you found the content helpful :)

[@bensonsunday4737]

Very great sir

[@adapttuition]

I appreciate that my friend :) Where are you from?

[@balocheducationchannel9010]

Thank you sir

[@adapttuition]

My pleasure 😊

[@shaniadurant2589]

Very Helpful!

[@adapttuition]

Thanks! Where are you from and how are you doing with this whole COVID-19 situation?

[@shaniadurant2589]

I'm from Guyana. Just staying indoor.

[@elijahhilton898]

thanks so much for this sir the video was really helpful

[@adapttuition]

You’re very welcome! What other topics do you need help with?

[@akbarabidkhan1224]

Sir pls make a video on double entries of depreciation. That is a difficult topic

[@adapttuition]

Ah, yes! Depreciation is a topic dreaded by many students. I will be turning my attention to that before the year is out. Right now I'm focusing on making multiple choice videos for the upcoming exams. But I definitely have to tackle depreciation

[@bilalkhan7881]

well explained sir

[@adapttuition]

Thanks very much :)

[@esthermwangi4006]

Great job. Am searching for statement of financial position can't find it. Kindly share a link if you have. Also on cash flow

[@adapttuition]

Hi! Working on those videos but they won’t be out for some time.

[@lawrencejrnjobvu2869]

kindly make a video on cashflows statements

[@adapttuition]

Hi :) Would love to make more videos but after making 100 videos in 100 days I'm taking a break for the rest of the month to focus on my students and preparing them for exams. Thanks for watching though :) Wishing you all the best!

[@buminamposya6328]

Thank you

[@adapttuition]

You're welcome :)

[@raymokaya3591]

✨✨✨👌👌👌 magnificent

[@adapttuition]

Thank you! Cheers!

[@shaniquewright5652]

Hi, is there a video that shows you apply prepayments and expenses to the balance sheet?

[@adapttuition]

Try this one Balance Sheets | Statement of Financial Position | The Current Assets & Current Liabilities Sections kzbin.info/www/bejne/o6WllaucosSXa7c

[@shaniquewright5652]

@@adapttuition thank you so much!! Your videos are like small portions of a big meal that ....easy to digest. My p@yb@ck to you is....all the @D$ Today your videos have helped me to UNDERSTAND accruals and prepayments and how apply them either statement.

[@adapttuition]

Happy to hear that you’re finding the content helpful Shanique 😊 That’s awesome! Keep up the good work! And thanks very much 😊

[@bilalkhan7881]

Keep it up

[@adapttuition]

Will do! Thanks for watching :) Are you sitting the exam this year?

[@bilalkhan7881]

@@adapttuition yes sir

[@rokiejoe8452]

So do you always add accruals values on income statement?

[@adapttuition]

Hi! For the most part, yes. Once the item was earned or incurred in the reporting period then it must be included in the income statement.

[@kinebrasche6768]

Do a video on income statements and balance sheet with the final adjustments. I'm having a difficult time 😔

[@adapttuition]

The income statement videos are done 👍🏽😊

[@princemagori6692]

helpful, but I need to know more about these adjustments especially earned and unearned income

[@adapttuition]

Hi, thanks for watching :) When revenue is earned you credit the revenue account and debit either cash/bank if money was received, OR, accounts receivable (accrued revenue) if no money was received. If there is unearned income you would debit cash or bank and the credit would go to unearned income (a liability account). When the revenue is earned then we debit unearned revenue and credit revenue (earned). Hope that helps.

[@lucksonhamwaata5639]

Awesome video, kindly help me to understand if on the trial balance you have Equipment at cost is $58000 then Additional they ask - Equipment is to be depreciated at 15% per annum using a straight line method. how do i calculate that when creating the profit and loss?

[@adapttuition]

Hi, maybe you can check out my video in this same playlist where I explain how to do depreciation.

[@lucksonhamwaata5639]

Alright thanks you so much I have repeatedly watched the video and solved the problem which I had.👍

[@veanifernando9588]

There is an invoice for factory rent in the business record for 4500 for the period from 1st March 2022 for a period of one year which was paid on 30th June 2022. Calculate the prepayment for the relevant period. Please help me with this calculation. I need explanation. Thank you.

[@adapttuition]

Hi, I would like to help but I think I'm missing some information. Can you send me the whole question - [e-mail]

[@adityaverma7016]

Great video/

[@adapttuition]

Aditya Verma thanks! Where are you from and when are you sitting exams?

[@balocheducationchannel9010]

Sir adjusting entries pr video bnae.....trial balance se le kr balance sheet tk video bnae plz

[@adapttuition]

Hi, I'm sorry but I don't understand what you're saying. Could you perhaps put it in a different way?

[@NsambaAlex-n9z]

Can you get expenses which are greater that the gross profit

[@adapttuition]

Hi 😊 yes you can and this would result in a net loss.

[@pareena9369]

What's the difference between accrued expenses and accounts payable? How do we know we have to record a transaction using payable and when to not?

[@adapttuition]

Accrued expenses are when we don't pay enough (or any amount) toward expenses so essentially we are still owing money for those items. For example, if you had an electricity bill for $400 and you only paid $300, you would have $100 accrued electricity expense. Accounts payable usually refers to when we owe for stock/inventory that was bought on credit. Both this and accrued expenses are liabilities. As for your last question I would say it depends on the question itself but usually they would indicate that the entire amount that is due is not being paid and that implies that some amount remains outstanding. Also, when they say "bought on credit" or "credit purchases" that's a dead giveaway for accounts payable.

[@peterndumba9897]

How about if you are given purchases allowance and office expense were not paid on the purchases account, how do you record it

[@adapttuition]

Hi! That’s interesting 🤔 I’m not sure I follow though so I’d have to see the question to be sure I’m answering correctly. Send me a pic on Instagram @adapttuition

[@peterndumba9897]

@@adapttuition thanks for your reply Sir... I did send the questions on your Instagram account just try to go confirm. Thank you.

[@adapttuition]

Hi, haven’t seen them in my inbox. Are you sure you sent them to the right account?

[@peterndumba9897]

@@adapttuition Hi sir, Yes I did send them on Instagram Maybe I should try through your email. Just send me your email sir

[@sue846]

Hello A Different Approach Tuition Limited, kindly may i know,(1.) in my trial balance while preparing the income statement i have two items. i.e salary on the trial balance and on the additional information i have prepaid wages, now my question is can is substract the two items or are they two different items. question 2. on the same trial balance i have building cost(80,000) and on the same it has been debited 55,000,fixtures at cost 16000, and provision for depreciation on fixtures is 8300 and next on additional information i have depreciation to be charged at fixtures 10% on a reducing balance basis sh. 750 on buildings. please let me know how to put this in the income statement account.

[@adapttuition]

Hey, I am SO SORRY I took so long to get back to you. Things have been a bit crazy with this whole COVID-19 situation. For the first item, is there another item in the trial balance for wages? I am hesitant to say subtract the prepaid wages from the salaries unless the salaries item specifically says "salaries" and wages. They could very well be two different items. If you still need help could you send a picture of the question to me using my email [e-mail]? For the second items I have a video that can help you. kzbin.info/www/bejne/iGLUpqGoaLKiedE I don't know if by chance you have seen it since posting this question (again, sorry I am only now replying). But based on what I am seeing in what you put above you'd have to do the following: Fixtures: 10% of ($16,000 - $8,300) I'm not following with the $80,000 and $55,000 for the buildings but maybe it is just $750 for the depreciation for the buildings. Again, I'd be able to help more if I could see the question.

[@sue846]

@@adapttuition thank you for this i had watched the video you tagged me. and its helpful thou i had the same before sending it to you. i have understood on the concepts of straight and reducing balance method. meanwhile i will send you the question for second part. also just a REMINDER PLEASE DO A DISPOSAL ACCOUNT/DEPRECIATION ACCOUNT ALL FROM ONE QUESTION. AM MISSING THE CONCEPT OF THE DISPOSAL. YOUR VIDEOS ARE HELPING ME.

[@salmannazir3108]

Can you please explained how come we make a logic of subtracting Prepaid Commision revenue from Comission revenue ? Is this pre paid doesn't belongs to the current year ? Thats why we are subtracting ? can you please clear this ?

[@adapttuition]

Hi :) That's a good question and you have the correct idea. When revenue is prepaid it usually means that it applies to a future period and as such is no relevant to the current period under consideration, and that is why we subtract it in order to find the figure that goes in the income statement. Hope that helps :)

[@salmannazir3108]

@@adapttuition Thank you very much ...u looks very similar to one of my neighbour guy ... lived in South London... 😊

[@adapttuition]

😄 you’re welcome and I’ve been told I have a familiar face Keep up the good work, Salman 💪🏽🧠

[@salmannazir3108]

@@adapttuition just wondering do you offer face to face tutions on Acca F6 , F5 by any chance or suggest any video to folllow ? Or its in your pipline ?

[@adapttuition]

Hi, at the moment I’m not doing any face to face classes and I didn’t do ACCA so unfortunately I won’t be making videos for those items. Maybe in the future I will be able to.

[@Worldofasmrofficial]

Sir is this videos also helpful for O levels, Cambridge?

[@adapttuition]

Hi, it should help at least a little bit. The accounting I'm showing here is heavily influenced by Cambridge Accounting

[@asabisteele6730]

I'm so stressed right now with poa, i have exams in less than two months and I'm trying really hard to understand most of things in poa..highly regretting not taking this serious and not reviewing my work. Do u have any video/s for beginners, at least that could help me out?

[@adapttuition]

Hi Asabi :) Sorry to hear that you're feeling stressed out, and i sympathize with you on this matter. I have 15 years worth of past paper solutions and many tutorials on most of the syllabus' topics. Unfortunately I never got around to doing the "beginners" video series. I actually do have some of my private class recordings when I taught that stuff though but those are for my students or I could make them available for a price. But honestly, you can use all of the free content here and at least pass poa, a lot of ppl have done just that. Pick one topic to start with, watch the tutorial, do the past paper questions, watch the solution videos, make your corrections, ask your questions, and then rinse and repeat.

[@ChiratidzoKellyMuringwa]

How do you prepare an income statement extract

[@adapttuition]

Hi 😊 It depends on what you’re trying to show. An extract simply means “a small piece”. I show extracts in other videos and some of the past paper solutions. Perhaps if you provide me with some more details I can better assist you. 😊

[@kaserekakarama9484]

hello sir, is there any way to adjust expenses and income after preparing the financial statement of comprehensive income? if yes, how?

[@adapttuition]

That is a serious question there 😅 Ok, so this seems more in the realm of CAPE Accounting, but if the financial statements have not been approved for issue then we simply adjust the figures as we normally would. If the financials have been approved then we would have to leave the error in and in the following year's financial statements we would need to show the correction and its effects on the statements.

[@naveeshseetal]

Still helpful 😌

[@adapttuition]

Happy to hear that 😊 Wishing you all the best

[@naveeshseetal]

@@adapttuition literally just told my sister I need to meet this guy and show my gratitude 🙏

[@adapttuition]

Maybe after Covid goes away 😊

[@allanettienne9366]

Questions : and if they say ( salaries due) what do , and If they say ( commission earned but not yet collected) what do i do next

[@adapttuition]

Hey :) Any accrued items at the end of a period should be added to the corresponding trial balance items. So for example, if the salaries due was $1,000 and the salaries figure in the trial balance was $19,000 you would add $19,000 and $1,000 to get $20,000 and that figure would go in the Income Statement. "Earned but not yet collected" is also another way of saying accrued. So if for example a question says revenue earned but not collected $6,000 and there is a revenue figure in your trial balance of $24,000 then you would add the $6,000 to the $24,000 to get $30,000 and that is the figure that goes in the Income Statement. This only works if the trial balance is before adjustments have been made (as in all of the questions in my examples). Be sure that the unpaid or uncollected items are not in the Trial Balance but are only referred to in the additional information section (usually below the Trial Balance). Hope this clears it up.

[@deonlatchman3283]

Thanks

[@adapttuition]

Deon Latchman you’re very welcome ! Happy to help. When are you sitting the exam?

[@deonlatchman3283]

@@adapttuition no sir ..... I'm a business teacher ... and I recommend my students to view your videos ... your videos are well delivered.

[@adapttuition]

@@deonlatchman3283, that's awesome! Thank you so much :) I really appreciate that. Where are you from?

[@deonlatchman3283]

I'm from Guyana .... teaching at parika secondary

[@adapttuition]

@@deonlatchman3283, nice! Thank you for your service as a teacher. It really is an important profession. Best of luck to you and thanks again for the support! If your students have any requests for topics feel free to let me know.

[@emmaleehettiarachchi9338]

ok but what bout opening and closing accruals and prepayments?

[@adapttuition]

CSEC PoA | Expense accounts | How to prepare expense accounts kzbin.info/www/bejne/d6esiGafarGae80

[@adapttuition]

CSEC PoA | Revenue accounts | How to prepare revenue accounts kzbin.info/www/bejne/h6HOoqGsl5JgkM0

[@adapttuition]

CSEC PoA past paper solutions - revenue and expense accounts kzbin.info/www/bejne/eKCaeYCrrLmnpNk

[@adapttuition]

Let me know if those help

[@dreamsta3938]

Hello,I need you to help me with one of these.

[@adapttuition]

Hi 😊 Did you watch all of the videos in the playlist? Maybe they can help?

[@dreamsta3938]

@@adapttuition should interest recievable be added to the gross profit?

[@adapttuition]

You can add i retest revenue there, yes.

[@ArebahoonaUrban]

What about provision for bad debts

[@adapttuition]

CSEC PoA | The Provision for Bad Debts | The Provision for Doubtful Debts | Theory, calculation, etc kzbin.info/www/bejne/p6iXoXd6qtlrrqs

[@adapttuition]

Income statement with adjustments | The Provision for Bad Debts | Principles of Accounts | CSEC PoA kzbin.info/www/bejne/lXLbmoNon6iJopo

[@adapttuition]

Income Statements with adjustments | Accruals & Prepayments | Provision for Bad Debts & Depreciation kzbin.info/www/bejne/d5KVkIOgjsSbibc

[@bensonsunday4737]

I like to have your email

[@adapttuition]

[e-mail]

[@chitkooli]

Funny accent 😂

[@adapttuition]

😁