ALso how do you know what can be easily transferred to the income statement for example at 7:35 how did you know that you needed to calculate the annual rent for the income statement,
As per the matching principle, the amount transferred to the IS is what the business is supposed to pay during the year. so that amount is annual rent in this case.
Hello sir I really appreciate your hard work and passion for accounting I reached the end of the playlist and I have gathered a lot of knowledge please continue doing you and making videos I would like to support you in any way possible, and sir I wanted to take your online course but your website seems to crash everytime, Sir I do the 0425 paper all these videos are related to 0425 paper am I right?
Hey, thank you so much for the kind words, yes will continue making the videos soon. Regarding the course, will come up with an updated course soon. The videos are based on cambridge 0452 but can also be used for o level and edexcel courses.
Hello. I wanted to ask if you have made a video on inter firm comparison for accounting o levels. Please let me know as I can not find anything relating to that
I don't get it for rent received account you found value of rent for 12 months in income statement. But for Insurance account? Why didn't find rent in income statement for 12 months??? Why 6 months??
Suggestion: You could do past papers playlist for igcse accounting. No one on RUclips has a solid playlist of IGCSE accounting hence you'd be a unique channel standing out
For recording the payment, never look at the time period. simply record the payment as per the details given in the question. when recording the transfer to income statement we do the monthly calculation.
hello sir amazing video but when i attempted the question the insurance expense account yearly payment for me was 2400 as 200 monthly * 12 so why did you write 3200 to transfer to the income statement?
if you see, the insurance premium is paid on 31 March. so it means in the current financial year, we will take only 9 months (31 March - 31 December), so 9*200 = 1800 and there is an opening balance of 1400 which was paid in the previous year for the current year, so total expense for the current year = 1800 + 1400 = 3200
@@EdexWorld did the expense for insurance premium change in the last year? Don't we have to pay 200 month in the current year, there was a prepayment of 1400 so that means they prepaid for 7 months in the last year right? (1400/200) The payment from Jan 1 to March 31(3 months) is 1400(466 per month) and from April 1 to December 31 is 1800?(200 per month)
If you are following Cambridge or Edexcel IGCSE, then thats the correct way of presentation. For other curriculum, prepaid insurance in the details is also fine.
No that just means insurance premium was paid totally for 15 months. To see how many months have been paid in advance, count the number of months from year end to the last date of premium paid.
After a year of watching and rewatching your videos it has finally paid off, and I got an 8 in my IGCSEs report card!Thank you so much!
So glad :)
Literally the best accounting teacher. Period.
Your videos have helped me throughout my IGCSE.
Great to hear that and happy to help always :)
THANK YOU SO MUCH SIR, I HAVE MY BOARD EXAM TOMORROW, YOUR VIDEOS REALLY HELPED ME LEARN.
Good luck!
Thank you, so much. im having my IGCSE's Nov 2021. ur videos are a survivor.
Thats for olevel also?
ALso how do you know what can be easily transferred to the income statement for example at 7:35 how did you know that you needed to calculate the annual rent for the income statement,
As per the matching principle, the amount transferred to the IS is what the business is supposed to pay during the year. so that amount is annual rent in this case.
Hi for the insurance account should the prepaid amount of 1400 be counted for the first 7 months of the accounting period?
You dont have to do any calculations there, it is simply given as prepaid on 1 Jan, so just take it and include it as expense for the current year.
Hello sir I really appreciate your hard work and passion for accounting I reached the end of the playlist and I have gathered a lot of knowledge please continue doing you and making videos I would like to support you in any way possible, and sir I wanted to take your online course but your website seems to crash everytime, Sir I do the 0425 paper all these videos are related to 0425 paper am I right?
Hey, thank you so much for the kind words, yes will continue making the videos soon. Regarding the course, will come up with an updated course soon. The videos are based on cambridge 0452 but can also be used for o level and edexcel courses.
Happy new year sir! Thank you for your videos.
Thank you so much and a very happy new year to you also :) Always welcome!!
please more videos mcqs yearly
Hello. I wanted to ask if you have made a video on inter firm comparison for accounting o levels. Please let me know as I can not find anything relating to that
No i dont think i have made any specific video on this topic.
thank you. Do you have links to hw and solved answers? Maybe last papers?
You can refer to the mark schemes from any of the open websites.
I don't get it for rent received account you found value of rent for 12 months in income statement. But for Insurance account? Why didn't find rent in income statement for 12 months??? Why 6 months??
Suggestion: You could do past papers playlist for igcse accounting. No one on RUclips has a solid playlist of IGCSE accounting hence you'd be a unique channel standing out
But i think the anwers in the mark scheme of accounting past papers are quite elaborated and detailed. Not sure how much it will help the students.
@@EdexWorld You could possibly create a poll on your community channel asking people for their opinion
Thnx alot bro ❤️
Welcome!!
sir, is the opening balance of provision for doubful debt always credit?
Yes.
hi for the bank value of 3000 in the insurance account , its for 15 moths so dont we get for 12months?
For recording the payment, never look at the time period. simply record the payment as per the details given in the question. when recording the transfer to income statement we do the monthly calculation.
hello sir amazing video but when i attempted the question the insurance expense account yearly payment for me was 2400 as 200 monthly * 12 so why did you write 3200 to transfer to the income statement?
if you see, the insurance premium is paid on 31 March. so it means in the current financial year, we will take only 9 months (31 March - 31 December), so 9*200 = 1800 and there is an opening balance of 1400 which was paid in the previous year for the current year, so total expense for the current year = 1800 + 1400 = 3200
@@EdexWorld did the expense for insurance premium change in the last year? Don't we have to pay 200 month in the current year, there was a prepayment of 1400 so that means they prepaid for 7 months in the last year right? (1400/200)
The payment from Jan 1 to March 31(3 months) is 1400(466 per month) and from April 1 to December 31 is 1800?(200 per month)
Do you always debit balance b/d?
No, only if the balance is an asset - which happens in case of accrued income and prepaid expenses.
sir can u please make video on effect on owner capital and working capital of various transactions
please
Will try to do in future
Why do you bring down the balance in 2:23
why can you list it just as prepaid insurance, or insurance
If you are following Cambridge or Edexcel IGCSE, then thats the correct way of presentation. For other curriculum, prepaid insurance in the details is also fine.
At 4:10 it says insurance paid for 15 months, wouldnt that mean that they paid an extra 3 months of insurance
why did u multiply by 6 and go to june
No that just means insurance premium was paid totally for 15 months. To see how many months have been paid in advance, count the number of months from year end to the last date of premium paid.
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