PoA - Jan 2016 P2 Q1 - Solution | Balance Sheet | Transaction | Financial Position

In this video I show the solution for question 1 from the Jan 2016 PoA P2.
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[@nazariaalexander-williams1779]

For part b of the question, (v) where the owner used personal funds to settle a debt owed by the business. I understand your rationale, however, when we are doing this type of manipulation with the Balance Sheet equation shouldn't the both transactions have the same effect? Meaning, if one account increases the other should also increase.

[@adapttuition]

I hear what you’re saying but that logic applies for Assets = Liabilities + Equity If something happens on one side of an equation then the same thing must happen on the other side of the equation. However, liabilities and capital are on the same side thus this wouldn’t apply. Even if you put it in the form Assets - Liabilities = Equity Remember Assets come from liabilities and equity So yes, if liabilities increase, assets would increase If equity increases, assets increase And the reverse holds true as well re decreases in liabilities and equity being matched with decreases in assets. But remember in the form A - L = E The L is shown as a negative figure So whatever happens on the equity side, if it’s affecting the Liabilities it would have the opposite effect because of the minus sign

[@nazariaalexander-williams1779]

@@adapttuition yes yes yes ......... you right. Thinking it over, If an account affects Liabilities and Capital they both CANNOT have the same effect

[@victoirepearl7272]

Hi, thank you very much for being so DYNAMIC in your explanation!!! This channel is the best one that I've come across till now to learn PoA. Can you do a whole video explaining Income Statement followed with the Statement of Financial Position using the additional information please. Because, actually the videos for Income Statement was very very very helpful as I'm struggling a lot at University and my exams is for next week :(( Thank you sooo much for what you are doing!!!

[@adapttuition]

Hi! Thanks so much for your kind words. Will try to get that video out for you but I have a list I’m working through video wise. So I can’t promise it will be soon but I’ll see what I can do

[@victoirepearl7272]

@@adapttuition oh thanks for such quick reply. It's okay, no worries. Again thank you!! All the best :)

[@juda6584]

Sir i used a different format and got a different answer,i found the working capital which was $35000 and add it to the fixed assets and got $433000

[@juda6584]

What did I do wrong

[@adapttuition]

The working capital was negative. Current liabilities was MORE than current assets. So the $35,000 you found should have been subtracted from non-current assets, not added to it. This would have given $363,000 and then when you subtract the non-current liabilities of $150,000 from that figure you would get the $213,000 for capital Hope that helps.

[@elikhuman3778]

Is this a easier way of doing the balance sheet? What if there were prepayments, commission received, accruals etc. I've been tutoring myself and following the old ways on the textbook. Also, with guidance to challenging questions, I've been learning from your videos. Are there different formats of doing things in the exam now?

[@adapttuition]

Hi. There is no one right way to do a balance sheet. Some questions give more details than others. The format you use should depend on the information given and the instructions in the question.

[@annalisapersaud4416]

This is wonderful....thank you so much...can u please do 2016 paper 1❤️

[@adapttuition]

Hi! Happy to hear you like the content! I did 12 MCQ videos in May/June 2020 and my Instagram page has the solutions for PoA P1s. @adapttuition

[@CynthiaRhoden]

Sir I don't understand how the totals add up to 613900, 399, 400, 214, 500

[@adapttuition]

Hi, you simply have to add and subtract going down the columns bearing in mind that the items in brackets are negative items and would therefore be subtracted.

[@khadijahkarim3037]

Greetings sir I have poa in June 2022 and was self teaching myself but I'm lost I think I need to start over from the beginning what could you suggest for me

[@adapttuition]

Hi! So sorry to hear that you're feeling lost at this stage. What I can suggest is for you to pick a topic, like, let's say income statements, and watch the videos on my channel on that topic. Ask questions where you don't understand and try as many questions as you can. Then repeat for another topic until the exam comes around.

[@khadijahkarim3037]

@@adapttuition thanks very much will do

[@adapttuition]

Happy to help 😊

[@MikeSmithitis]

good night one question..... what if i worked out the working capital already and was doing the financed by part of the balance sheet and i did the long term liabilities last which means I worked of the current and non current assets and the current liabilities i did all of that and waited to do the long term liabilities last after less drawings what would i do in that situation would i less the long term liabilities from the closing capital?

[@adapttuition]

Hi :) We call long-term liabilities "non-current" liabilities now. And, you add non-current liabilities to capital.

[@hardy_har689]

Hi, Chris! Could you re-explain how you found the capital in the first example?

[@adapttuition]

Hi, you can check between 05:18 and 05:27 where I explain that. Essentially, I used the accounting equation Capital = Assets - Liabilities I used the top half of the balance sheet to detail the assets (totaling $422,800), then I used piece of the bottom half to detail liabilities (totaling $209,800), and at the 05:26 you'll see the working where I find the difference between the two amounts. Hope that helps.

[@adaishaarmour9063]

I love your videos ,I'm not really good in Accounts but your videos are very helpful, I actually understand your teaching better than my current teacher's teaching .

[@adapttuition]

Happy to hear that you are finding the videos helpful. Wishing you the best of luck in your exams. 😊

[@adaishaarmour9063]

@@adapttuition thank you

[@adapttuition]

My pleasure 😊

[@maliquesam3.536]

Hi Sir....do u have any solutions for paper 3

[@adapttuition]

Sorry, no I don't :(

[@jeremiahaugustine4706]

good day sir do you know where i can get cxc style questions for practice for paper 2?

[@adapttuition]

Hi, store.cxc.org You can buy a subscription and practice from actual past papers. Or you can use the videos I make and pause them so you can read the questions.

[@jeremiahaugustine4706]

@@adapttuition okay sir thanks very much, I appreciate the fast response

[@adapttuition]

Happy to help Wishing you all the best 💪🏽🧠

[@oopsididitagain4863]

I'm still confused on the 4 column balance. Why isn't assets in the first column, credit in the second and total in the third 😢

[@adapttuition]

Hi, could you type a time in the video so I can see what you’re talking about? Like 12:34, and I can click on it. But, from reading your question I can say that I’m not sure what you’re talking about. I don’t know what “credit in the second” means. Could you clarify please? Thanks

[@oopsididitagain4863]

​@adapttuition 3:22 u have 3 places for figures ($$ money) why is that? What goes where?? I font completely understand

[@adapttuition]

Hi, perhaps you should watch at least the first video in my balance sheet tutorial playlist which you can find --> kzbin.info/aero/PL9u_QIMhEllv09b3EnxcupBc8WjjFvuGb There is no one right way to draw up a balance sheet. You can use one, two, or three columns. Most students are taught one way and then when they encounter another way they get confused. This is normal but it also shows a fundamental lack of understanding of what a balance sheet is and how it can be presented. That's not an attack on you or anyone, that's just how it is initially. As time goes by, ideally, you should be exposed to different methods of preparing and presenting a balance sheet. I didn't learn different ways until I had left form 6 and was in my university studies. I was resistant at first but I had to learn to accept new things. Now, something else you mentioned in your initial question also bothered me. You said "asset in the first column, credit in the second column, and total in the third". I'm sorry, but I don't think that's a balance sheet to which you're referring. Balance sheets don't have "credit" columns (at least not anymore), nor do they have "total" columns. But, again, maybe it's a format with which I am unfamiliar, so I may learn something new. But I honestly think you're mixing up your statements, and I'm not entirely sure to which statement you are referring. If you want you can send me a pic or an example via email --> [e-mail] I hope we can sort this out and help you understand these things a lot better :)

[@oopsididitagain4863]

@@adapttuition ok will do

[@adapttuition]

👍🏽😊

[@oneangelartyz1090]

sir, if I place the current liabilities first then long term loan, would that format be incorrect?

[@adapttuition]

Hello :) Yes, it would be wrong because the question specifically asked for the order of permanence to be used. Permanent means long lasting, therefore the longer lasting items in each category should be shown before the "shorter lasting" items. Non-current assets before current assets. Non-current liabilities before current liabilities. And, Equity before non-current liabilities because equity is more permanent than liabilities.

[@oneangelartyz1090]

@@adapttuition thanks!

[@adapttuition]

Happy to help 😄

[@haleyramson3008]

Hey sir, I was looking for question 2, however there isn't a vid on it. Will you be making one?

[@adapttuition]

PoA Jan 2016 P2 Q2 - Solution | Partnerships | Appropriation accounts | Current accounts kzbin.info/www/bejne/faK9gp9-f9mof9k 😊

[@haleyramson3008]

Sorry sir, I meant on 2016 May/ june 😅

[@adapttuition]

Hi, that question has some issues. I wasn’t able to get it out and I sent it to my teacher who took long to do it and when he sent it back he had to make so many changes to it to get the balance sheet to balance I was of the opinion that no average or even above-average csec PoA student would be able to do it under exams conditions or even not under exam conditions so I didn’t bother to do a video for it. There are many, many other questions though 😊 so you can use those to help you prep for the exam. Wishing you all the best 💪🏽🧠

[@haleyramson3008]

Ok sir, thank you 😊

[@adapttuition]

Happy to help Haley 😊

[@CynthiaRhoden]

You're a good teacher, but please slow down.... Geez

[@adapttuition]

Hi :) Ever since I was very young I've spoken quite fast and it got to a point where only my family and close friends could understand what I was saying. It was almost like I was speaking another language XD. What you're seeing here is slow relative to how I used to be, and I'm still working on it. I understand that it is still quick for some people but there is always the option to slow the video down to 0.75, 0.5 or even 0.25 times the regular speed. You can do so by clicking the settings button (the gear icon) on the lower right of the video, then select "playback speed" from the menu when it comes up, and then select the slower speed that works best for you. Also, I try to maintain a relatively lively pace as when I am learning from videos it's difficult for me to learn from anyone who talks too slowly. In some of the online courses I have been doing I actually sped up the video to 1.25 or 1.5 times the original speed for me to not lose interest. I also pause the video or "rewind" it to take notes or to listen again to hear an explanation if it doesn't click the first time or two (or three :D). That's the convenience of having a video - the flexibility to do the things you couldn't do in a real class. There are a lot of people who feel the same as I do (i.e. if the person in the video talks too slowly, then this = boring and then they lose interest no matter how "good" the teacher is or how valuable the content). I am mindful that no single approach will work for 100% of the people who watch my videos but I also know that I can't please everyone. So I do what feels natural and try to improve where I can. So thanks for your feedback :) I will take it into consideration going forward. Wishing you all the best :)

[@CynthiaRhoden]

Ok, please don't stop uploading videos.

[@tshyasookram4458]

Awesome video Sir! Extremely helpful!

[@adapttuition]

Happy to help!

[@seemaramdhanie1925]

Sir can you do June past paper

[@adapttuition]

Hi! The July 2021 P2? That will be up in the new year. I’m working on some other things before that.

[@cherisefraser2581]

Hi, I understood everything, expect what u added to get the closing balances and why? Please explain.

[@adapttuition]

Hi, are you referring to part a (the balance sheet) or the next part with the changes in the assets, liabilities and capital?

[@cherisefraser2581]

@@adapttuition Hi, I tried adding up the assets column and I did not get the closing figure you got. I wanted to know what sums were added, and why the others was left out to get the closing balance? Same as for the liabilities and capital closing balance columns, please.

[@adapttuition]

When adding going down the items in brackets are to be subtracted as they represent decreases. Try that and let me know if you get the figures.

[@cherisefraser2581]

@@adapttuition I am still not getting it. For the assets column, I added 600000+12000+900+3500= 616,400 . I am still not getting the 613,900.

[@adapttuition]

Where are the deductions? Like items ii, iv, and the last item? I think I put the phrase “closing balance” in the wrong line. It should be one line lower. But, as I was saying, you only have the increases in your calculation. Why didn’t you include the decreases?