I guarantee you, nobody in the entire RUclips explains this better than you do. I have been following and checking all your other videos before this one. You are a Jean-Yas! Thank you.
If u are given 405 as provision for doubtful debts in the trial balance and u are given additional information which says that increase the provision for doubtful debts by 91. How do you treat it in the income statement and balance sheet
@user-my5tk8ti8u hi, I show how to do that in this video and the one before it that deals specifically with the provision for bad debts. Also, check out my balance sheet videos
I regret not watching your videos from the beginning of 5th form instead of going to class...you've taught me more I 2 days than my teacher did in 8 months!!
Best teacher I have met so far I have this accounting paper today at 9am but am sure am gonna pass cos aint never seen this kind of understanding am getting from u, Am turning on notifications ASAP, good work and I'd recommend u to all my course mates
thank you so much for all the help, i have csec in 2 weeks and didn't know how to do any accounts only t accounts but you changed that and now i have more confidence towards my exams thank you again
This is your 400th comment and i dont really have a question just wanna express how impressive it is that you reply to every comment. Keep up the good work!
you know what you are my lecture may God bless bless you sir .iI will make a commitment every morning to learn!!thanks a lot from Kenya learning from Egerton University
Hi Cindy! Thanks very much for your awesome comment :) You're very welcome! My pleasure to be of service 😊 Sometimes things start of difficult. But keep trying and keep asking questions until you understand! Keep up the good work 💪🏾🧠
Sir I have my exams in about 5 days and Im now starting to pay attention to accounts. But, thanks to you, despite me starting so late, I feel like I actually have a chance to do well. Thank you :))
This is well explained 😊 I don’t understand my teacher’s method But wawww i understand this video thank you very much for this knowledge God bless you brother !! Please continue with this!!
Thank you for the explanation🙏it's my first time doing accounting this year and it's been a major challenge trying to understand income statement,but I now understand thanks to you🙏🔥keep up the good work🙏🔥
Thank you sir, the adjustments for accruals and prepayments in particular are bothering me for a long time now. Your add / minus explanation got it resolved faster than my lecturer could even do lol.
I missed 3 weeks of class because I caught the flu then caught dengue. I came back to school last week just as knowledgeable and maybe even more than my fellow classmates. Now I'm preparing for mock exams and I can only thank you. It's true that heroes don't always wear capes 🙏🙏💜
Hey 😊 Sorry to hear you were sick 😕 I had that happen to me too! I had dengue and then went for a flu shot afterwards but I hadn’t fully recovered so I got I’ll again. But super happy to know that you’re finding the content in the videos helpful 😊 Keep up the good work and good luck in mock 💪🏽🧠
I've had the pleasure of coming across this channel and I love it. The presentation and delivery is incredibly professional, yet so humane. I'm currently gaining a better understanding of the syllabus requirements for ACCA FIA FA2 as a result of your videos.
Kirit Kanagalingham thanks so much for your kind comment. I am beyond happy that the material is helping you with your studies. I wish you all the best with your studies 😊 where are you from?
Hi, Faith! Thanks so much for watching and for your awesome comment! Super happy to hear that you're enjoying and learning from the videos. Be sure to keep up the good work :) Wishing you all the best 💪🏾🧠
Happy to hear you found the content helpful! Thanks for watching 😊 Keep up the good work! Don’t let it get you down. There’s always something you can do 💪🏽
Hey Morgan, that’s wonderful to hear! Glad to know you found the content helpful 😊 What’s your favorite topic in accounting right now, and what topic is your least favorite that’s been giving you the most trouble?
Thank you so much sir for the assistance your doing to most of us in the accounts proffession. now you put provision for bad debts under other revenues, may you please throw more light on this. otherwise thank you so much, personally i do appreciate.
Hi! The accounting we teach in this syllabus is heavily influenced by the British system (as we used their GCE/GCSE exams before our own examining body came into existence). Under this method of accounting the provision for bad debts is treated as an end of period adjustment that affects the income statement. If the provision increases, then this is considered an expense and as such is debited to the income statement via the expenses section. If the provision decreases, then this is considered a decrease in expenses and as such is credited to the income statement. We cannot have a credit as an expense item so we include this credit as an addition to profits. You can watch my video on this topic using the link below ruclips.net/video/qw4pDDut8xI/видео.html Hope this helps!
Hi @Sabrina-uy8uv Super happy to hear that you're finding the content helpful! And, yes! There is hope once you continue to put in the work :D Wishing you all the best :D
Hey bro these videos are very helpful and U really making learning Accounting fun....Good Job! keep of the good work. Question? How do U set up your spreadsheet in three segments? I have been trying and not sure what I doing
Thanks for the kind words :) In this video on the left hand side of the screen I actually have a word file. To split the screen in a word file I use the keyboard shortcut Alt>W>S>1. You can accomplish the same thing by going to View>Window>Split. From there you can adjust the "margin" in the middle to show the required amount of the top and bottom windows. To get the Word and Excel windows side by side have both open at the same time and while holding down the Windows key on your keyboard press the < arrow or > arrow to send the active window to that side of the screen. Usually any other windows would appear very small in the opposite side of the screen and you can click on the one that you would like to appear on that side. If the other windows don't appear like that you should click on the window with the other file you'd like to present on the opposite side to the first file and use the same Windows key + < or > If you want to show different parts of the same file (window) side by side you can use the keyboard shortcut Alt>W>N and a second instance of that window will open. You can them arrange them using the "Arrange All" command in the "Window" section of the View ribbon. Hope this helps.
I really appreciate that Ricardo 😊 Thanks very much! I’m sure your friends appreciated it as well 😊 My aim is to help as many people as I can because PoA is often misunderstood and taught in ways that frustrate students, and I want to relieve that issue because it really is a beautiful subject which can be mastered if the right messages and instructions are received, and you put in the work.
@@adapttuition Totally agree. I had a very resourceful lecturer for fundamentals last semester. The lecturer for Financial Accounting this semester is not so clear. I'm struggling to grasp the material
@@ricardorobinson8358 Sorry to hear you're struggling, but I hope you find the content in these videos helpful. There is a lot more info out there. It takes patience and determination to keep looking though. Wishing you all the best. :)
i understand that to show an increase in capital and revenue you credit and to show a decrease you debit. with assets its the opposite. so basically i know those fundamental concepts because you showed us on you tube, but the this new concept is driving me crazy when the bad debts has to be added to the revenue section and not the expense section
Great work, thanks for empowering me with this knowledge. Your doing a great job, you have explained so well the depreciation adjustments which i had a problem in thank you 🙏. Keep up the good work.
I know there's a horizontal format for income statement. I just want you to let us all know where an increase in provision for bad debt will be on the account and where a decrease will be on the account. Thank you.
Hi 😊 The horizontal format is no longer used. But if there is an increase in the provision for bad debts then it will go on the debit side and if there is a decrease it will go on the credit side.
@@adapttuition hi sir! For the question (income statement with adjustment), can you continue to the balance sheet by using it information in above question? Thanks 🙏
Hi :) If you could include the time in the video (like 01:23) to which you are referring I could click on it and be able to see exactly what you are talking about. So, I'm going to assume you meant the provision for depreciation for the furniture and not provision for bad debts. Firstly, at the 08:55 time in the video I start to explain what we need to do in respect of depreciation in the question. Secondly, at the 09:48 time in the video I start to explain how to deal with the depreciation on the furniture specifically. I explain that because we are using the straight-line method then to calculate the depreciation that goes in the income statement we simply multiply the depreciation rate by the cost of the asset. The existing provision does not factor into the depreciation expense calculation. That happens when using the reducing balance method. You can see an example of this at the 10:52 time in the video when I calculate the depreciation expense for the vehicles. You can see the depreciation calculations/explanations for example 2 starting at the 17:09 time in the video. Again, the furniture is depreciated using the straight-line method and the vehicles are depreciated using the reducing balance method so the calculations would be similar to those in the first example. Hope this helps
Hi! That's a good question. Perhaps you can check out the other video in this playlist that deals specifically with the provision for bad debts. Long story short, you need to compare the provision in the trial balance with the provision you calculated for the current year. If the new provision > trial balance provision then it's an increase. If the new provision < trial balance provision then it's a decrease.
Thank you very much sir, you are such a wonderful teacher!!!! you have made me love accounts and i believe i will have to pass well my papers because of your videos. May God bless you exceedingly
I want to ask about the provision for bad debts, isn't 10% of 40,000 4000, which we have to subtract a 5000 from. But that gives us a -1000 . How does it become a positive 1000
Have you checked out the other videos on the topic? How to prepare revenue accounts and how to prepare expenses accounts? There’s also a balance sheet tutorial with these items.
hello can you do an example if there was bad debts separately, provision for bad debts and debtors because i am hanging on how to enter them in the income statement separately
@@adapttuition thanks a lot sir, at least now I hope that I will go and do exam of financial accounting 1,on Monday with more confidences bcz of you. Thanks a lot from Rwanda.
I paused the video to go and do something but when I came back and press play the first thing I heard was "and read, reeeaadd...llllllll" I was upset lol and hearing that made me laugh so hard lol, everything from 13:21-13:26 is lowkey comedy goal
😂 glad to know it lifted your spirits! Things happen in life sometimes and it's important to be able to re-center/refocus and get things done. Laughter helps :) Thanks for watching, Nicholla :)
Love your videos. So well explained, thank you. If the trial balance has a prepayment for building of 80k and the additional information given states a prepayment of 100k do we add this prepayment increase in the income statement?
Thanks for watching :) Prepayments are not added in the income statement, they are usually subtracted. When you say a prepayment for building, do you mean building repairs? I'd need to see the question to be able to comment better. You can message me on Instagram @adapttuition
I don't know how to thank you but thanks. I didn't do accounting at high school and I'm pulling so hard to understand everything well especially when it comes to adjustments. Your video helpful to me. God bless you
Hi 😊 I explain both situations in this video. You can also check one of the previous videos in this series that shows only the provision for bad debts and I have a video explaining the provision for bad debts from the very beginning😊
@ I’m in my first year of my undergraduate for accounting & finance, ill be doing my first exam in a week then the second one in about 5 weeks😭i’m praying brother🙏🏾
Yo got this! That’s a pretty interesting degree that will require a lot of you. Make sure you have your schedule locked in and stay consistent. And of course, leave some room for having fun. All work and no play and all that 😊 Best of luck in your exams. Let me know how they go 🫡
Hi sir, I'm doing a similar question and the answer sheet/question contains loan interest and tax as an adjustment. The answer sheet says that I have to subtract their balances from the sum of expenses and revenue. so in other words I have to subtract the tax amount and the interest amount after adding everything together to produce the gross profit why do I need to do this and why do I subtract those ones
Hi Mike, that's interesting but I'm not sure I'm following you. To the best of my knowledge, interest is subtracted like an expense and tax is subtracted thereafter. I can assure you that you don't add expenses and revenues together. You subtract expenses from revenue to get the net profit on which tax is calculated.
Hi! Inventories in existence at the trial balance date are included in the trial balance. Not sure if I answered your question but you can let me know 😊
Hi 😊 Bank interest is an expense. If it’s accrued then you add the accrues portion to the corresponding figure in the Trial Balance (if there is one) so that it is included in the income statement. Dividends are a revenue, and receivable means we didn’t receive it yet but we should have. As such this is an accrued revenue and should be included in the other revenue section in the income statement.
Hi Albert :) I do have provision for depreciation in my expenses section. Maybe you should check out from the 09:10 time in the video where I explain why the provision for depreciation figures given in the table do not go in the income statement, and if you watch to the 11:40 mark I explain how to get the provision for depreciation figures that actually do go in the expenses section in the income statement. Perhaps you might also watch this video ruclips.net/video/R1qunr3MoCo/видео.html which shows how to deal specifically with the provision for depreciation in the income statement. Let me know if these things help :)
I guarantee you, nobody in the entire RUclips explains this better than you do. I have been following and checking all your other videos before this one. You are a Jean-Yas! Thank you.
Wow, thanks! Really like what you did with the name there :D
If u are given 405 as provision for doubtful debts in the trial balance and u are given additional information which says that increase the provision for doubtful debts by 91. How do you treat it in the income statement and balance sheet
@user-my5tk8ti8u hi, I show how to do that in this video and the one before it that deals specifically with the provision for bad debts. Also, check out my balance sheet videos
Your the best
Very true 😌
Only God will bless you for pouring such knowledge into my brain. I love the way you present and analyze each topic. Many thanks sir!!
You are most welcome! It's my pleasure to be of assistance :)
Thanks you sir
You’re very welcome 😊
Thanks for watching!
Am so glad I watched this because after watching this I now understand Depreciation
Super happy to hear that 😊
I regret not watching your videos from the beginning of 5th form instead of going to class...you've taught me more I 2 days than my teacher did in 8 months!!
Happy to hear that you're finding the videos helpful :)
Keep up the good work and just do your best, my friend :)
Thanks for watching!
Best accounts teacher! Hands Down!!
Thanks for your kind words :) Happy to be of help!
REAL 😭
❤️❤️💪🏽🧠
your videos have helped me do 3 months of uncovered topics in the 3 days before my exam, bless you brother.
Happy to know you found the videos helpful! Wishing you all the best for the exam and beyond!
A year later and this helped me pass my exams. Truly a blessing
Happy to hear you found the content helpful and benefitted from it.
Keep up the good work 💪🏽🧠
Best teacher I have met so far
I have this accounting paper today at 9am but am sure am gonna pass cos aint never seen this kind of understanding am getting from u,
Am turning on notifications ASAP, good work and I'd recommend u to all my course mates
Happy to hear you’re finding the content helpful and improving your understanding of the material.
What accounting course are you pursuing?
thank you so much for all the help, i have csec in 2 weeks and didn't know how to do any accounts only t accounts but you changed that and now i have more confidence towards my exams thank you again
Happy to know you found the content helpful!
Wishing you all the best!
Sir, youre too funny. Im the last bit of my accounting days in fifth year. Thank you so much! Youve helped a lot
Happy to help! Wishing you all the best :)
me going to one of the best private school in my country n find tht ur the best poa teacher ive had
Hi Rihanna :)
Thanks so much for the compliment! It really means a lot.
Keep up the good work :D
My favorite poa teacher😭😭
You’re too kind 😊
Happy to know you’re enjoying and learning from the content.
Keep up the good work 💪🏽🧠❤️👍🏽😊
Jubaraj sir will be proud man
😊❤️
This is your 400th comment and i dont really have a question just wanna express how impressive it is that you reply to every comment. Keep up the good work!
Hi 😊
I try to keep up as best I can.
Thanks for your comment 😊
you know what you are my lecture may God bless bless you sir .iI will make a commitment every morning to learn!!thanks a lot from Kenya learning from Egerton University
Happy to hear that 😊
You are so energetic and precise in your teaching, continue to inspire lives with knowledge,may God continue to bless and keep you healthy .Thanks
Thanks for your kind words, Kerryann :)
Wishing you all the best as well!
May Allah grtly reward u coz am really struggling with accounting watching ur videos gives me relief and much more confidence
Thanks very much for your kind words @fatmataimasukoroma4531
Wishing God's richest blessings on you as well.
Sir, this was so PERFECTLY EXPLAINED! Thank you for your hard work and saving headaches struggling to grasp this topic. Bless you!
Hi Cindy!
Thanks very much for your awesome comment :)
You're very welcome! My pleasure to be of service 😊
Sometimes things start of difficult.
But keep trying and keep asking questions until you understand!
Keep up the good work 💪🏾🧠
Wow, a very best teacher. Watching from Namibia. Bless up man.
Thanks very much for watching :) Wishing you all the best!
Sir I have my exams in about 5 days and Im now starting to pay attention to accounts. But, thanks to you, despite me starting so late, I feel like I actually have a chance to do well. Thank you :))
You can do it!
This is well explained 😊 I don’t understand my teacher’s method
But wawww i understand this video thank you very much for this knowledge
God bless you brother !!
Please continue with this!!
Glad to hear that, Shaniah :-)
Happy to know that you're understanding the content and enjoying learning!
Keep up the great work :-D
Thank you for the explanation🙏it's my first time doing accounting this year and it's been a major challenge trying to understand income statement,but I now understand thanks to you🙏🔥keep up the good work🙏🔥
Glad it was helpful! Remember, you can do it! I believe in you ! :)
@@adapttuition Thank you🙏
hi good night i am going into the POA 2023 cxc examination tomorrow and these videos realy helped me out thank you verry much
Hi Leikraj!
Glad to hear that!
Best of luck tomorrow and beyond!
I cant explain in words how thankful i am! May you achieve much much success 🙌.
Thank you so much 😀
Same to you!
Loud and clear, this is a good thing.
Happy to hear that you’re finding the content helpful. Keep up the good work 😊
Wishing you all the best!
Thank you so much. Because of you I got a very high score on my accounts test.
Great job! Happy to hear you got a great score on your test! What topic was it on?
Thank you sir, the adjustments for accruals and prepayments in particular are bothering me for a long time now. Your add / minus explanation got it resolved faster than my lecturer could even do lol.
So happy you understood! It really is simple but sometimes it's not presented that way.
I missed 3 weeks of class because I caught the flu then caught dengue. I came back to school last week just as knowledgeable and maybe even more than my fellow classmates. Now I'm preparing for mock exams and I can only thank you. It's true that heroes don't always wear capes 🙏🙏💜
Hey 😊
Sorry to hear you were sick 😕
I had that happen to me too! I had dengue and then went for a flu shot afterwards but I hadn’t fully recovered so I got I’ll again.
But super happy to know that you’re finding the content in the videos helpful 😊
Keep up the good work and good luck in mock 💪🏽🧠
@@adapttuition Thank you sir!!! I basically live on your channel 😭🙏🙏🙏
😊 I’m glad you find it so helpful!
I've had the pleasure of coming across this channel and I love it. The presentation and delivery is incredibly professional, yet so humane. I'm currently gaining a better understanding of the syllabus requirements for ACCA FIA FA2 as a result of your videos.
Kirit Kanagalingham thanks so much for your kind comment. I am beyond happy that the material is helping you with your studies. I wish you all the best with your studies 😊 where are you from?
@@adapttuition
I am from London England and I have the pleasure of being from a diverse and multicultural area called Kilburn Park in London.
Kirit Kanagalingham excellent! Thanks for watching. I appreciate it.
Watching you from Kenya ,actually youre the best av made a step by watching your videos again anf again
Hi, Faith! Thanks so much for watching and for your awesome comment!
Super happy to hear that you're enjoying and learning from the videos.
Be sure to keep up the good work :)
Wishing you all the best 💪🏾🧠
I think at example no.2 you forgot to record, Perpaid salaries.But then you were a real help thank you so much ❤❤
Hi, I checked and if you look at the 16:55 time in the video you will see that I deal with the prepaid salaries.
Excellent delivery of content, well presented, well explained, extremely helpful in understanding accounting principles. Love your work!
Thanks very much Mrs. Ramlakhan 😊
I really appreciate your awesome comment!
Thanks very much for watching 🙏🏽
Wishing you all the best 😊💪🏽🧠
Wow u saved my life
Happy to help, my friend 😊
Thanks for watching and keep up the good work!
I believe in you 😊
God bless you brother! Your conclusion made my evening given I have been down all day.
Happy to hear you found the content helpful! Thanks for watching 😊
Keep up the good work!
Don’t let it get you down. There’s always something you can do 💪🏽
Just making accounting easy for me, great job 💪💪💪
Happy to hear you’re finding the content helpful!
Keep up the good work 😊
Thanks my professor I really know how to make income statement with adjustment 🙏
Hey Morgan, that’s wonderful to hear!
Glad to know you found the content helpful 😊
What’s your favorite topic in accounting right now, and what topic is your least favorite that’s been giving you the most trouble?
Very clear and straight forward
Glad you found the content helpful 😊
Thanks for watching!
Keep up the good work 👍🏽💪🏽
Thanks for sharing and this is what accounts’ class needs. A little fun and I like the way how u teach.
Thanks very much 😊
Glad you enjoyed the video!
Thanks for watching.
The way you explained is way better than my school teacher 👏👏
Happy to hear you understood!
Thanks for watching 😊
Wishing you all the best!
My exam is tomorrow and this helped alot
Good luck!
Let me know how it goes 👍🏽😊
Hey. Do you have a video of how you now post these adjustments in the statement of financial position ( balance sheet)?
Thank you so much sir for the assistance your doing to most of us in the accounts proffession. now you put provision for bad debts under other revenues, may you please throw more light on this. otherwise thank you so much, personally i do appreciate.
Hi! The accounting we teach in this syllabus is heavily influenced by the British system (as we used their GCE/GCSE exams before our own examining body came into existence).
Under this method of accounting the provision for bad debts is treated as an end of period adjustment that affects the income statement.
If the provision increases, then this is considered an expense and as such is debited to the income statement via the expenses section.
If the provision decreases, then this is considered a decrease in expenses and as such is credited to the income statement. We cannot have a credit as an expense item so we include this credit as an addition to profits.
You can watch my video on this topic using the link below
ruclips.net/video/qw4pDDut8xI/видео.html
Hope this helps!
U make it to seem easier ... God bless u waiting for more videos
Thanks 😀
Happy you found the videos helpful 😀
THANK YOU SO MUCH there is hope for me if i watch the videos in this channel 😭
Hi @Sabrina-uy8uv
Super happy to hear that you're finding the content helpful!
And, yes! There is hope once you continue to put in the work :D
Wishing you all the best :D
Thanks for the great presentation and God bless you and your channel
Same to you! Thanks very much!
Glad you're liking the content!
#Best acc teacher
Thanks very much! That means a lot :) Wishing you all the best!
Thank you my brother very helpful. I've advised all my friends to your channel.
I appreciate that! Thanks very much :)
Awesome video! it was really helpful. Exam in the morning
Good luck! You can do it!
Hey bro these videos are very helpful and U really making learning Accounting fun....Good Job! keep of the good work. Question? How do U set up your spreadsheet in three segments? I have been trying and not sure what I doing
Thanks for the kind words :) In this video on the left hand side of the screen I actually have a word file. To split the screen in a word file I use the keyboard shortcut Alt>W>S>1.
You can accomplish the same thing by going to View>Window>Split. From there you can adjust the "margin" in the middle to show the required amount of the top and bottom windows.
To get the Word and Excel windows side by side have both open at the same time and while holding down the Windows key on your keyboard press the < arrow or > arrow to send the active window to that side of the screen. Usually any other windows would appear very small in the opposite side of the screen and you can click on the one that you would like to appear on that side.
If the other windows don't appear like that you should click on the window with the other file you'd like to present on the opposite side to the first file and use the same Windows key + < or >
If you want to show different parts of the same file (window) side by side you can use the keyboard shortcut Alt>W>N and a second instance of that window will open. You can them arrange them using the "Arrange All" command in the "Window" section of the View ribbon.
Hope this helps.
This is well explained and illustrated. Keep up the good work. I have forwarded this to persons I know struggling with this aspect of accounting.
I really appreciate that Ricardo 😊 Thanks very much!
I’m sure your friends appreciated it as well 😊
My aim is to help as many people as I can because PoA is often misunderstood and taught in ways that frustrate students, and I want to relieve that issue because it really is a beautiful subject which can be mastered if the right messages and instructions are received, and you put in the work.
@@adapttuition Totally agree. I had a very resourceful lecturer for fundamentals last semester. The lecturer for Financial Accounting this semester is not so clear. I'm struggling to grasp the material
@@ricardorobinson8358 Sorry to hear you're struggling, but I hope you find the content in these videos helpful. There is a lot more info out there. It takes patience and determination to keep looking though. Wishing you all the best. :)
@@adapttuition Thank you very much. I went on to pass financial and Cost accounting thanks to your methods.
i understand that to show an increase in capital and revenue you credit and to show a decrease you debit. with assets its the opposite. so basically i know those fundamental concepts because you showed us on you tube, but the this new concept is driving me crazy when the bad debts has to be added to the revenue section and not the expense section
You’re mixing up the provision with the actual bad debts expense. Check out the video on the provision itself, not just this video.
u actually saved me i love u
😊 happy to have been of assistance!
❤️ to you too!
Great work, thanks for empowering me with this knowledge. Your doing a great job, you have explained so well the depreciation adjustments which i had a problem in thank you 🙏. Keep up the good work.
It's my pleasure, Evans! Happy to hear you found the video helpful!
Thanks for the reply. 🙏Keep up the good work.
Anytime 😊💪🏽🧠
Finally i've understand the concepts, thank you sir 🙏 Watching your tutorials from malawi😅😅
Very happy to know that you understand the concepts 😊
Thanks very much all the way from Trinidad!
Wishing you all the best!
@@adapttuition Sir! do you have online classes?😊
Hi! Yes I do, but they’re geared specifically for students in the Caribbean and I only teach that syllabus.
Amazing guidance !!!!!
Thanks for your awesome compliment, Stephanie 😊
How are you enjoying PoA so far?
Do you have a favorite topic?
Thank you, thank you for this video its an eye opener and refresh our understanding in preparation of financial statements. Vinaka
Glad it was helpful!
Thanks for watching :)
Nice tuition sir, God will bless you for that.
Thanks very much! Glad you found the content helpful :)
Brother, you are the best.. thanks so much
You are most welcome :)
you make it so simple and easy thank you thank you
Glad it helped! Thanks for watching :)
THANK YOU SO MUCH.I finally understand. BLESS YOU.
Glad it helped!
Mashallah great video
Thanks very much! Glad you enjoyed it.
you are a good teacher
Thanks very much! Wishing you all the best 😊
Am happy to find your video so helpful, but how do you treat supplies remained
on hand?
Good question! As a current asset in the balance sheet!
@@adapttuition Thank you very much
You’re welcome!
Superb🤓🤓👌
Much appreciated. 💪🏽🧠
U best teacher I've met so far GOD BLESS UR WORK 🤓👌🙏
Very grateful for your kind words. 😊
Simply brilliant explaination
Thanks very much! Hope all is well with you :)
@@adapttuition Alhamdulillah All good thanx
👍🏽😊
This is so helpful. Thanks Sir 🙏🏾🇳🇬
You’re very welcome 😊
Thanks for watching 👍🏽
Keep up the good work 💪🏽🧠
You just saved my life
Happy to be of assistance!
Keep up the good work 😊
i also understand that the provision for is a contra asset and that would be on the credit side .
The provision account itself has a credit balance, that’s correct.
I know there's a horizontal format for income statement. I just want you to let us all know where an increase in provision for bad debt will be on the account and where a decrease will be on the account. Thank you.
Hi 😊
The horizontal format is no longer used.
But if there is an increase in the provision for bad debts then it will go on the debit side and if there is a decrease it will go on the credit side.
I totally loved the end😌🥰
Super happy you loved it! All the best to you and yours. Stay safe :)
very informative video...keep up the great work
Ryan Khallie, thanks very much. When are you sitting exams?
@@adapttuition hi sir! For the question (income statement with adjustment), can you continue to the balance sheet by using it information in above question?
Thanks 🙏
Thanks for the video, i found it easy to follow. Helped me a lot
Clinton Mbonu happy to hear 😊 When are you doing PoA and what other topics would you like to see videos on?
This is great Sir.Kindly let me why you are not doing anything with provision of bad debts of the furniture
Hi :) If you could include the time in the video (like 01:23) to which you are referring I could click on it and be able to see exactly what you are talking about.
So, I'm going to assume you meant the provision for depreciation for the furniture and not provision for bad debts.
Firstly, at the 08:55 time in the video I start to explain what we need to do in respect of depreciation in the question.
Secondly, at the 09:48 time in the video I start to explain how to deal with the depreciation on the furniture specifically.
I explain that because we are using the straight-line method then to calculate the depreciation that goes in the income statement we simply multiply the depreciation rate by the cost of the asset.
The existing provision does not factor into the depreciation expense calculation.
That happens when using the reducing balance method. You can see an example of this at the 10:52 time in the video when I calculate the depreciation expense for the vehicles.
You can see the depreciation calculations/explanations for example 2 starting at the 17:09 time in the video.
Again, the furniture is depreciated using the straight-line method and the vehicles are depreciated using the reducing balance method so the calculations would be similar to those in the first example.
Hope this helps
Wow, such a helpful piece sir ! Wish I got this earlier
Happy you found it helpful 😊 hope you are well!
Hello, i have always revisited this video because i found it so helpful, but how do you know that the bad debts are either reducing or increasing
Hi! That's a good question. Perhaps you can check out the other video in this playlist that deals specifically with the provision for bad debts.
Long story short, you need to compare the provision in the trial balance with the provision you calculated for the current year.
If the new provision > trial balance provision then it's an increase.
If the new provision < trial balance provision then it's a decrease.
Thank you very much sir, you are such a wonderful teacher!!!! you have made me love accounts and i believe i will have to pass well my papers because of your videos. May God bless you exceedingly
Happy to hear you found the content helpful!
Thanks for watching and keep up the good work!
Please try and make more examples..thank you so much for the efforts
Hi, Ebrima :) There are other examples on this channel. Search across the channel for "income statements" and you should find what you're looking for.
I want to ask about the provision for bad debts, isn't 10% of 40,000 4000, which we have to subtract a 5000 from. But that gives us a -1000 . How does it become a positive 1000
Sir a lot of thanks, May Allah bless you❤️
You are most welcome. Same to you :)
Great video
Glad you enjoyed it
Your videos are awesome
I appreciate that a lot, thank you 😊
Please explain more on accrued, outstanding,prepaid,and advances
Have you checked out the other videos on the topic?
How to prepare revenue accounts and how to prepare expenses accounts?
There’s also a balance sheet tutorial with these items.
When given drawings in the trial balance is it part of the income statement or balance sheet
The balance sheet 😊
You should check out my balance sheet videos to learn more
hello can you do an example if there was bad debts separately, provision for bad debts and debtors because i am hanging on how to enter them in the income statement separately
Yeh, already did that video 👍🏽😊
may God bless you,for good explanations👏🇷🇼
Thank you very much! God’s blessings on you too! ❤️😊
@@adapttuition I would like to know,if there is some video showing suspense account, thank you.
@apolonienishimweapple6616 hi! That’s already up on this channel a few years now 😊 just search for adapttuition suspense account. You should find it.
@@adapttuition thanks a lot sir, at least now I hope that I will go and do exam of financial accounting 1,on Monday with more confidences bcz of you. Thanks a lot from Rwanda.
@apolonienishimweapple6616 happy to help! Best of luck 😊
You are a star 🌟
Thanks very much 😊
That’s very kind of you to say
What accounting course are you studying?
Thank u I have understood how to treat additional information
Happy to hear that :)
made this topic 10× easier
Happy to hear that! Keep up the good work :)
@@adapttuition yeah trying to learn as much as I can by monday seeing that my teacher barely showed interest in teacher us...thanks for the content
i am happy to find you .my accounting exams is in two weeks and i had low grades in my assessment so i have to kill my exams or else...
i have to resit which i dont want
Happy to hear that you found the videos helpful 😊
Hope you get through with the exams so you don’t have to do over the course 👍🏽😊
Thank you sooo much for this useful information
It will surely go a long way ❤️💫
Very happy to help :) Keep up the good work! You can do it :)
Great insight, thanks a lot for the video
You’re most welcome! Thanks for watching. Wishing you all the best 😊
How do I like so many times 👏👏👏
:-D
Thanks very much!
I paused the video to go and do something but when I came back and press play the first thing I heard was "and read, reeeaadd...llllllll" I was upset lol and hearing that made me laugh so hard lol, everything from 13:21-13:26 is lowkey comedy goal
😂 glad to know it lifted your spirits!
Things happen in life sometimes and it's important to be able to re-center/refocus and get things done.
Laughter helps :)
Thanks for watching, Nicholla :)
Love your videos. So well explained, thank you.
If the trial balance has a prepayment for building of 80k and the additional information given states a prepayment of 100k do we add this prepayment increase in the income statement?
Thanks for watching :) Prepayments are not added in the income statement, they are usually subtracted. When you say a prepayment for building, do you mean building repairs? I'd need to see the question to be able to comment better. You can message me on Instagram @adapttuition
I don't know how to thank you but thanks. I didn't do accounting at high school and I'm pulling so hard to understand everything well especially when it comes to adjustments. Your video helpful to me. God bless you
How would you know if the provision of baddebt increase or decrease!! Soo that you can put in expenses or in other revenue/income
Hi 😊 I explain both situations in this video. You can also check one of the previous videos in this series that shows only the provision for bad debts and I have a video explaining the provision for bad debts from the very beginning😊
My love, U save me a lot. Thanks
Happy you found it helpful 😊 Much love to you too!
Brilliant video very clear
Happy to hear that you found the video clear and helpful. When are you sitting the exam?
@ I’m in my first year of my undergraduate for accounting & finance, ill be doing my first exam in a week then the second one in about 5 weeks😭i’m praying brother🙏🏾
Yo got this! That’s a pretty interesting degree that will require a lot of you. Make sure you have your schedule locked in and stay consistent. And of course, leave some room for having fun. All work and no play and all that 😊 Best of luck in your exams. Let me know how they go 🫡
@@adapttuition appreciate you brother, thank you for the advice, genuinely! Are you on linkedin i would love to connect if you do?
Hi, yeh I’m on LinkedIn - adapttuition. I barely use it but message me there or on IG
Hi sir, I'm doing a similar question and the answer sheet/question contains loan interest and tax as an adjustment. The answer sheet says that I have to subtract their balances from the sum of expenses and revenue. so in other words I have to subtract the tax amount and the interest amount after adding everything together to produce the gross profit why do I need to do this and why do I subtract those ones
Hi Mike, that's interesting but I'm not sure I'm following you.
To the best of my knowledge, interest is subtracted like an expense and tax is subtracted thereafter.
I can assure you that you don't add expenses and revenues together.
You subtract expenses from revenue to get the net profit on which tax is calculated.
Thank.you.teacher.god.bles.you.very.gerat.class
Happy you found the video helpful 😊
Thanks for watching g
Can you include inventories in the trial balance so you can adjust it too?
Hi! Inventories in existence at the trial balance date are included in the trial balance.
Not sure if I answered your question but you can let me know 😊
What's if accrued bank loan interest and dividend receivable was part of the additional information where would you place it in the income statement
Hi 😊
Bank interest is an expense. If it’s accrued then you add the accrues portion to the corresponding figure in the Trial Balance (if there is one) so that it is included in the income statement.
Dividends are a revenue, and receivable means we didn’t receive it yet but we should have. As such this is an accrued revenue and should be included in the other revenue section in the income statement.
great video, how would you know when the provision for bad debts increases or decreases?
Check out this video ruclips.net/video/qw4pDDut8xI/видео.html
@@adapttuition just viewed it. Thank you so much sir!✨
Happy to help 😊
Why did you not put provision for depreciation of non current assets in the expenses?
Hi Albert :)
I do have provision for depreciation in my expenses section.
Maybe you should check out from the 09:10 time in the video where I explain why the provision for depreciation figures given in the table do not go in the income statement, and if you watch to the 11:40 mark I explain how to get the provision for depreciation figures that actually do go in the expenses section in the income statement.
Perhaps you might also watch this video ruclips.net/video/R1qunr3MoCo/видео.html which shows how to deal specifically with the provision for depreciation in the income statement.
Let me know if these things help :)