Hi, good questions :) Imagine I owed you $3 and you owed me $3. Since we owe each other the same amount of money we would just "call it even" and neither of us would have to pay the other anything. The amounts we owed each other cancelled themselves out. Now, imagine I owed you $10 and you owed me $3. Instead of the both of us paying those amounts to each other I could simply pay you $7 and we would call it even. The $7 was the difference between the amounts owed, right? But what's more important is what happened to the $3. Long story short, just as when we both owed each other $3 in the first paragraph and those amounts cancelled each other out, that's what's happening here as well. I owe you $10, yes, but that's like owing you $3 and $7. And since you also owe me $3 we can cancel the two amounts of $3 against each other. That's what a set-off is, it's a cancellation of common debt. In the question we owe creditors $1,050 and they owe us $375. So just as with the example above, us owing the creditors $1,050 is like us owing them $375 and $675, and since they owe us $375 as well we will just cancel that amount. So since we're cancelling the common amount owed we will have to use that amount in both the control accounts. --- As for the returned cheque, you can cheque my response to your other questions about the NSF / dishonored cheques. "Returned cheques" is another name for that same item and as such the rationale for the treatment is the same. Hope this helps.
Jokes apart : You’re the best accounting teacher on RUclips I’ve come across! Not only have you well explained all the topics clearly and properly, but you have inspire me to take ACCA courses. ❤️
I imagine we would debit the account from which the balance is being transferred and credit the account to which it is being transferred. But I would need to see the question to be sure. Send it to me on Instagram @adapttuition
Hey, thanks for the compliment :) Where are you from and when are you doing the PoA exam? Also, I'm sure your teacher is doing his/her best. But, I hear yah, not every teacher's style will mesh with what a student needs. The same happened for me when I was in school as well. But always remember to be kind :)
My teacher has been trying to explain this to me and I could not understand at all! But then u watched this video and understood right away I am soooo thankful that you made this video Thank you! Please continue making videos, they are extremely helpful
Hey, Macy! You're very welcome! I'm happy that you understood :) Let me know what other topics are giving you trouble. Where are you from and when are you sitting the PoA exam?
Wow, thank you! You can check out more control accounts videos that show solutions to past papers if you'd like. I've put them up recently. Hope you find them helpful as well :)
You are really making accounting so easy for my understanding. May God bless you for that great job. My fear of accounting is killing itself day by day just listening your lectures on various topics. Thank you!!
Very happy to hear that :) Video production resumes next week. Hopefully you'll see a new video either late next week or early the following week. Stay safe and keep on working!
Exam in 2 hours sir, I wanna say you are the best poa teacher on this platform. I will report back to u with my grade and with Gods help I wont disappoint sir
Hey Andre 😊. Thanks very much for your kind words! I really appreciate them. Wishing you the best of luck in the exam. Please let me know how it went afterwards. Keep up the good work in all things 💪🏽🧠
Sir you explained well enough for me to understand , I've sat in class wondering how I would understand this stuff but u broke it down so simply for me , I can't even begin to say how grateful I am sir
mannn i just wanna say thank you yes...my teacher taught us this but he cant teach so i didnt fully understand at first so i came here and i saw this and now i understand this a whole lot more ...thank you so muchhh....and thats really good that u do past papers as well considering i have CSEC in 2 months .... so gratefullllll...much love
Keisha Brandon super happy you found this helpful 😊 it’s my pleasure to help. Where are you from? And, yes I have full past paper solutions available on Facebook. Please feel free to check them out.
@@adapttuition Im from Trinidad lol..Penal to be specific...and yes ill check them out .. much appreciated... thank you so muchhhh..again.. .... God Bless
Thank you so much for this🙏. I missed class when my teacher was teaching this and my classmates told me it was too difficult for me to understand because i was not at class... But watching your video helped alot.. Thank u
Hey Sadia 😊 You’re very welcome and thank you too for your kind words! I’m so happy to hear that you fully understand the material. 💪🏽🧠 You keep up the good work too!
Imagine I owed you $3 and you owed me $3. Since we owe each other the same amount of money we would just "call it even" and neither of us would have to pay the other anything. The amounts we owed each other cancelled themselves out. Now, imagine I owed you $10 and you owed me $3. Instead of the both of us paying those amounts to each other I could simply pay you $7 and we would call it even. The $7 was the difference between the amounts owed, right? But what's more important is what happened to the $3. Long story short, just as when we both owed each other $3 in the first paragraph and those amounts cancelled each other out, that's what's happening here as well. I owe you $10, yes, but that's like owing you $3 and $7. And since you also owe me $3 we can cancel the two amounts of $3 against each other. That's what a set-off is, it's a cancellation of common debt. In the question we owe creditors $1,050 and they owe us $375. So just as with the example above, us owing the creditors $1,050 is like us owing them $375 and $675, and since they owe us $375 as well we will just cancel that amount. So since we're cancelling the common amount owed we will have to use that amount in both the control accounts.
Hi Khia 😊 Thanks for your kind comment, I really appreciate it 😁 Super happy to hear you understood and even happier to hear that you enjoyed 🥳 Keep up the good work! 💪🏽🧠 You can do it 😊
Thanks Shakera 😊 You’re very kind to say so! I’m glad you enjoyed the video 😊 What did you find most helpful in it? Are you sitting CSEC PoA this year?
Thank you sir for the lecture, we really appreciate it. But I gave a question. Please sir after set-off, what do we do with the difference if there is any. Thank you.
Great video and love the jokes however at 29:30 you said that “received from creditors due to overpayment “is a increase in liability (CR) can you please explain more because it said we overpaid and the person we owe is giving back us our money so I would think that it decrease the liability.
Hi! Thanks very much 😊 Ok, so here goes When we make the overpayment we actually decreased the liability MORE than we were supposed to. So the problem we now have is that the liability is too low. To fix that, we need to “undo” the error. As such, we need to increase the liability to counteract the fact that it is too low. Hope that help 😊
aadam mohammed thanks very much! I intend to keep up the videos. Glad you’re finding them helpful. Where are you from and when are you sitting the exam?
@@adapttuition yes sir, they are really helpful. i am from sangre grande and i attend the institute of darul uloom. well with corona thing we have the exams in july,2020 and multiple choice only.
@@adapttuition yes sir will prepare well, it might be even harder to attain a 1 or a distinction because the bell curve will raise as well as they(cxc) cud even add 100 mcq instead of 60
@@mhretfshaye9573 Wow! That's a long way from where I am but it's fantastic that the internet can bring us all together no matter where we are in the world. Best of luck to you and I hope you continue to get value from my channel :)
Hi Sir, at 35:15 where you added the set-off, can you explain why the Sales Ledger amount of $375 was added as opposed to the Purchases Ledger balance of $1050?
Hi 😊 Imagine I owe you $10 and you owe me $10. We could just call it even, right? We would essentially cancel the amounts owed to each other. Now, imagine I owe you $10, but you owe me $12. So for us to clear off the amounts owed, the easiest thing to do would be for you to pay me $2. What we did there was cancel the $10 I owed you and we also cancelled $10 that you owed me. This is how set-off works: we cancel the lower amount because it is was each entity owes the other. It’s a cancellation of common debt. Hope this helps.
Explain the part of Interest and Refund in a bit simple way on the basis of why it is Debit and credit respectively in both the debtors and creditors account?
Debtors If we charge debtors interest on late payments, then this increases the amount of $ that they have to repay us. As such to record the increase in the asset, we have to debit the control account. If a debtor pays us too much money, then the credit entry will be too high. In order to fix that we need to debit the account to counterbalance that overpayment. So when we give them the refund we debit the control account. For creditors the logic is reversed as creditors is a liability. Hope that helps.
Hi 😊. The set-off amount used in both accounts is always the lower figure if two figures are given. Imagine I owe you $10 and you owe me $8. All that would have to happen to clear off the amounts we owe each other is for me to pay you two dollars. The $8 is cancelled from both sides as we both owe each other $8 (and I owe you an extra $2 making up the $10) So we cancel the common debt which is the lower of the two figures. Hope that helps.
Christ what can I say My class mate and I call you our boyfriend lol 😂 (we are both married and are believers in Jesus Christ 😅) Any way we start watching you days before our cxc exams 🤦🏽♀️CSEC and you help us to pass now we don’t get back out results as yet but with what you taught us we for sure pass Thank you a lot God bless….
I don't know if anyone has asked this because there are a whole lot of comments but why does it say Closing Balance (Cr) when it's actually a Balance brought down for the next month? I know what to do now though, but I don't understand the logic. Is it that you can't have to balance c/ds on the same side?
The balance c/d simply closes off the account at the end of one period by make the dr and cr columns equal. The balance b/d is the value that is brought forward from the previous period. They are essentially the same thing And no, the balance c/d and the balance b/d can’t be on the same side It’s just not how it works.
Hi I clearly understood the examples work there one thing I did not understand was the off set y did u not used the 1050 for the last one u did or did I miss something plz help
Hi Tronda :) Ok, so that's a good question. For set-off when you are given the two corresponding amounts from the ledgers you use the lower of the two amounts because you are in essence cancelling a common debt (amount owed between two parties). Let's say you owe me $8 and I owe you $8. We would just "call it even" because we owe each other the same amount and it wouldn't really make sense for you to give me $8 and for me to then give it back to you, right? Now, let's say you owe me $8 and I owe you $10. In the end I would just give you $2. It wouldn't really make sense for you to pay me $8 and then for me to give you back $10. So what we would have done in the latter scenario above is to cancel the $8 that we owe each other. We cancelled the lower of the two amounts; the common debt. And, that's the logic applied in the last question as well. Hope this helps. Keep up the good work!
Sir I've seen examples of where they give the accounts in 1 table both debtors and creditors and they ask for the control accounts, I saw one and it had dishonored cheques and here you show dishonored cheques in both of the accounts do I put the 1 number in both of the accounts?
Hi, no. Dishonored cheques are usually for the debtors control only. However it’s possible one of the cheques “we” pay with could be dishonored. In that case it would go in the creditors control account. So you have to read carefully and the question has to provide you with info.
Imagine I owed you $3 and you owed me $3. Since we owe each other the same amount of money we would just "call it even" and neither of us would have to pay the other anything. The amounts we owed each other cancelled themselves out. Now, imagine I owed you $10 and you owed me $3. Instead of the both of us paying those amounts to each other I could simply pay you $7 and we would call it even. The $7 was the difference between the amounts owed, right? But what's more important is what happened to the $3. Long story short, just as when we both owed each other $3 in the first paragraph and those amounts cancelled each other out, that's what's happening here as well. I owe you $10, yes, but that's like owing you $3 and $7. And since you also owe me $3 we can cancel the two amounts of $3 against each other. That's what a set-off is, it's a cancellation of common debt. In the question we owe creditors $1,050 and they owe us $375. So just as with the example above, us owing the creditors $1,050 is like us owing them $375 and $675, and since they owe us $375 as well we will just cancel that amount. So since we're cancelling the common amount owed we will have to use that amount in both the control accounts.
Hi Dev, Imagine I owe you $8 and you also owe me $8. Instead of both of us each paying each other $8 we would just "call it even", right? ok Imagine I owed you $10 but you still only owed me $8. Now...consider that $10 = $8 + $2 So since we still owe each other $8 we will cancel that off, and I'll just pay you $2 That's what set-off is --> a cancellation of common debt. We always cancel the lower amount as that is the amount owed by both parties to each other. Hope that helps.
Hi :-) Imagine I owe you $5 and you owe me $5. We wouldn't bother to pay each other the same amount, we would just "call it even"... cancel the debts owed to each other. Right? Now imagine I owe you $7 and you owe me $5. Think about it like I owe you $5 and $2. As $5 + $2 = $7. Right? So in a sense, we still owe each other $5. I just owe you an extra $2 as well. But we would still cancel the $5 between ourselves. Now imagine I owe you $15 and you owe me $10. We technically owe each other $10, and i owe an additional $5. But we would cancel the $10 .. the LOWER amount. Right? So it is with the set-off. Set-off is the cancellation of common debt. If we owe them $1,050 (the creditors/payables) and they owe us $375 (the debtors/receivables), then we owe each other $375 and we owe them an extra $675 ($1050 - $375). But the $375 is what is cancelled. It is the lower of the two amounts. And that is always the figure that is used in BOTH accounts when accounting for the set-off. Hope that helps. P.S. you can listen to the explanation between 12:34 and 13:44 in the video and between 21:25 and 21:35. Maybe that's the "something" that you missed? 😊
My RUclips teacher, may i ask that why the contra entry, u use the number 375? Why not use the no. ( the difference between the sales ledger and the purchase ledger number?) or use the number 1050? Can u answer me, please? 😖😖
HI! Thanks for watching : ) I actually answered this question already but I know it might be difficult to find that comment, so I'll explain again :) Imagine you owe me $10 and at the same time I owe you $8. So technically we both owe each other $8 and you owe me $2 extra. Instead of you paying me $10 and me paying you $8 you will just pay me $2 and we will cancel the $8 we owe each other. Does that makes sense?
good say off topic i was on this video so i decide to ask anyway sorry lol. when doing bank rec. if the details in the cash book differs from the bank rec but the figures match, we should leave as it is. Example if you don't understand cash book has Rates (#46) 1500 and bank rec chq (#46) 1500. dat wasn't updated are it's because of the (#46).
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How come you didnt set off 'purchases ledger $1050' and why is returned cheque a debit?
Hi, good questions :)
Imagine I owed you $3 and you owed me $3. Since we owe each other the same amount of money we would just "call it even" and neither of us would have to pay the other anything. The amounts we owed each other cancelled themselves out.
Now, imagine I owed you $10 and you owed me $3. Instead of the both of us paying those amounts to each other I could simply pay you $7 and we would call it even.
The $7 was the difference between the amounts owed, right? But what's more important is what happened to the $3.
Long story short, just as when we both owed each other $3 in the first paragraph and those amounts cancelled each other out, that's what's happening here as well.
I owe you $10, yes, but that's like owing you $3 and $7. And since you also owe me $3 we can cancel the two amounts of $3 against each other.
That's what a set-off is, it's a cancellation of common debt.
In the question we owe creditors $1,050 and they owe us $375. So just as with the example above, us owing the creditors $1,050 is like us owing them $375 and $675, and since they owe us $375 as well we will just cancel that amount.
So since we're cancelling the common amount owed we will have to use that amount in both the control accounts.
---
As for the returned cheque, you can cheque my response to your other questions about the NSF / dishonored cheques. "Returned cheques" is another name for that same item and as such the rationale for the treatment is the same.
Hope this helps.
Jokes apart : You’re the best accounting teacher on RUclips I’ve come across! Not only have you well explained all the topics clearly and properly, but you have inspire me to take ACCA courses. ❤️
Wow, thanks! Happy to help :)
I'm here in 2024 and what took around 4 classes to learn n years to understand for my classmates took me one video from you. Thank you
Goodluck in your exams
I like how he didn’t cut the funny parts where he messed up 👍🏾 we all humans sir doh beat up
Thanks very much for the understanding! I appreciate it. Hope you found the video helpful.
@@adapttuition what do i do when a transaction says "transfer of credit balance from sales"
ledger in the sales ledger account
I imagine we would debit the account from which the balance is being transferred and credit the account to which it is being transferred. But I would need to see the question to be sure. Send it to me on Instagram @adapttuition
@@adapttuition oh sorry never mind I asked my teacher and cleared it up but thx for helping me
Ok, glad to hear. Perhaps you could share with me what your teacher said so that I may understand.
This was actually really helpful. Better than my actual POA teacher. Thanks a lot
Hey, thanks for the compliment :) Where are you from and when are you doing the PoA exam? Also, I'm sure your teacher is doing his/her best. But, I hear yah, not every teacher's style will mesh with what a student needs. The same happened for me when I was in school as well. But always remember to be kind :)
Am saying.
Sir Do you do classes? Ik due to the covid things are different but online classes ?
Hi, yes I do. You can email me chris@adapttuition.com and I’ll give you details
👍
My teacher has been trying to explain this to me and I could not understand at all!
But then u watched this video and understood right away
I am soooo thankful that you made this video
Thank you!
Please continue making videos, they are extremely helpful
Hey, Macy! You're very welcome! I'm happy that you understood :) Let me know what other topics are giving you trouble. Where are you from and when are you sitting the PoA exam?
Same for me. I understand him
@@adapttuition you are teaching so well sir thank
Sir please you can teach all topic international accounting
Thanks for your awesome comment!
Wow! you are the best teacher ever. for the first time in I watch a video that last that long and I'm not tired and wish you could have done more.
Wow, thank you! You can check out more control accounts videos that show solutions to past papers if you'd like. I've put them up recently. Hope you find them helpful as well :)
You are really making accounting so easy for my understanding. May God bless you for that great job. My fear of accounting is killing itself day by day just listening your lectures on various topics. Thank you!!
Very happy to hear that :) Video production resumes next week. Hopefully you'll see a new video either late next week or early the following week. Stay safe and keep on working!
Exam in 2 hours sir, I wanna say you are the best poa teacher on this platform. I will report back to u with my grade and with Gods help I wont disappoint sir
Hey Andre 😊. Thanks very much for your kind words! I really appreciate them.
Wishing you the best of luck in the exam.
Please let me know how it went afterwards.
Keep up the good work in all things 💪🏽🧠
What’s was the grade👀
Hopefully it was a good one
I think imma just watch his past papers now I got exams 15 th of this months 🙃...... he really does a great job
Thanks for the compliment!
Glad you’re finding them helpful!
Wishing you the best of luck 💪🏽🧠
Thank youu😊
Happy to help!
A year later and I’m here...finna sit the exams in 2020 and this helped me so much I love you man❤️ keep doing what you do.
My pleasure :) All the best to you, thanks for watching!
Sir you explained well enough for me to understand , I've sat in class wondering how I would understand this stuff but u broke it down so simply for me , I can't even begin to say how grateful I am sir
Glad to hear that! Happy to help :)
I like how you teach the entire topic in one video 👍 other people does it in too much parts
Thanks 😊
Yeh, I try to keep things simple and compact while also trying to explain relatively thoroughly.
Happy to know you are enjoying the videos.
Thank you for becoming a teacher on RUclips I'm really glad that I've found your channel💙
You are so welcome!
I have Exam Monday guys! Thanks sir. You make learning easy and fun💞
You got this! :)
Okay but this has been one if the best yt videos to actually teach me smth
Happy to hear that 👍🏽😊
mannn i just wanna say thank you yes...my teacher taught us this but he cant teach so i didnt fully understand at first so i came here and i saw this and now i understand this a whole lot more ...thank you so muchhh....and thats really good that u do past papers as well considering i have CSEC in 2 months .... so gratefullllll...much love
Keisha Brandon super happy you found this helpful 😊 it’s my pleasure to help. Where are you from? And, yes I have full past paper solutions available on Facebook. Please feel free to check them out.
@@adapttuition Im from Trinidad lol..Penal to be specific...and yes ill check them out .. much appreciated... thank you so muchhhh..again.. .... God Bless
I’m from Trinidad too, but North (Diego Martin).
Yes, I did 3 videos on LLCs 😁
You can check them out and let me know if you have any questions.
Keisha Brandon ruclips.net/p/PL9u_QIMhEllscQEEadEIaFI8MsG2J2ztl this is a link to the playlist
Same sis...same
My exams tomorrow, you are amazing. Thank You for making these amazing videos
You’re very welcome Hanii
Thanks for watching
Best of luck and keep up the good work 😊
Thank you so much for this🙏. I missed class when my teacher was teaching this and my classmates told me it was too difficult for me to understand because i was not at class... But watching your video helped alot.. Thank u
Glad it helped! It's actually not a hard topic but it needs to be taught well for people to understand. Thanks for watching. Wishing you all the best!
Sir your teachings are outstanding....such a calm voice that helps me to do the work without stress....thank you sir❤
Hey Jeremy 😊
Very happy to hear that you’re enjoying and benefitting from the videos
Thanks for watching and keep up the good work!
Thank You So Much!! Going For The Grade One Tmr!!!
You got this, girl!
Thanks Chris, I had a few issues with the c/d but thankfully they were cleared up as I worked along with you :)
Good to hear! Keep up the great work, Trinity!
Ever time I watch your videos I always get good grades thank u
Hey Gabrielle 😊
That’s lovely to hear! Glad you’re benefitting from and understanding my videos 😊
Keep up the good work 💪🏽🧠
Accounts exams in May I started school in November 😭 thank you so much you’ve been a great help
Happy to help! Wishing you all the best :)
Thanks for everything! You give me hope for the upcoming exams! Love from Jamaica!
Happy to hear you are finding the content helpful. Best wishes to you 💪🏽🧠
You really helped with this course....I learnt in a day compared to what I was thought.
Happy to hear you’re finding the content helpful!
Keep up the good work 😊💪🏽🧠
I really appreciate this. Thank you for your clear explanation!!
RJ Kelly you’re most welcome! Thanks for your kind words 😊
Good teaching my bro about to sit CXC and your vide has cleared up misconceptions. Thanks
Happy to know that it helped :)
Hey thanks allot sir it was really helpful
I will be writing PoA exam tomorrow and this was one of the topic giving a lil trouble yo thanks 🙏😁
Glad it helped
AHHHH UR AN AMAZING TEACHER IDK WHAT WOOOULD HAVE HAPPENED WITH MY PREPARATION FOR MY EXAMS IF IT WEREN'T FOR U TYSMMM
Happy to help :)
This was so helpful i fully understand now thank you so much sir! You're doing an amazing job!!
Hey Sadia 😊
You’re very welcome and thank you too for your kind words!
I’m so happy to hear that you fully understand the material. 💪🏽🧠
You keep up the good work too!
Hi sir, love your work! Really need some CAPE accounting videos.
Hi, Hope 😊
Thanks so much for the support, I really appreciate it 🙏🏽❤️
What unit are you doing this year?
@@adapttuition unit 2 sir
I have a unit 2 class on Saturday mornings from 10am-12pm. If you’re interested you can email me - chris@adapttuition.com
This really helps tremendously!! 😢. Well explained! 👏. I Hope to get a grade 1 in accounts for CSEC this year 🙏.
Happy to hear you found the content helpful 😊
Hoping the same for you re the 1 😁
@@adapttuition 🙌
Good video I learned alot. Thank you. I wishou explained every entry and why you're putting it there. I jot that down ..really helps
Imagine I owed you $3 and you owed me $3. Since we owe each other the same amount of money we would just "call it even" and neither of us would have to pay the other anything. The amounts we owed each other cancelled themselves out.
Now, imagine I owed you $10 and you owed me $3. Instead of the both of us paying those amounts to each other I could simply pay you $7 and we would call it even.
The $7 was the difference between the amounts owed, right? But what's more important is what happened to the $3.
Long story short, just as when we both owed each other $3 in the first paragraph and those amounts cancelled each other out, that's what's happening here as well.
I owe you $10, yes, but that's like owing you $3 and $7. And since you also owe me $3 we can cancel the two amounts of $3 against each other.
That's what a set-off is, it's a cancellation of common debt.
In the question we owe creditors $1,050 and they owe us $375. So just as with the example above, us owing the creditors $1,050 is like us owing them $375 and $675, and since they owe us $375 as well we will just cancel that amount.
So since we're cancelling the common amount owed we will have to use that amount in both the control accounts.
Thank you for being so helpful with your video if it ain't for them I wouldn't have the slightest idea what to do in my exam for june 2021
Great to know you found the content helpful! Wishing you all the best 😊
Thanks to your sir, you are a great teacher by nature you made me understand everything.
Glad to hear that! I am very happy that you understood everything :)
Keep up the good work!
You are better than my lecturer. Thank u👍
So nice of you :) I'm sure he/she is trying his/her best.
So happy I found your channel 🙌
❤❤❤❤❤❤
Happy you are finding the content helpful! Keep up the good work 💪🏽🧠
thanks so so much i have exam today and this really help
Happy to know you found it helpful!
Best of luck in your exam 😊
Let me know how it goes!
Very good explanation. thanks
Glad it was helpful!
I'm gonna be the best accounts student coz of your amazing tips
Happy to hear that, Susan 😊
Glad you’re finding the content helpful 👍🏽
Keep up the good work! 💪🏽🧠
I always understood urs better than my lecturer awwww thanks very much Sir
You are too kind! Happy to hear that you are understanding well.
Let me know if you have any questions :)
Thank you so much sir to create this channel for us students to understand accounts properly👍🏻😊
Happy to hear you’re finding the content helpful! Thank you for watching 😊
Keep up the good work 💪🏽
Let me know if you have any questions 😊
Your tutorial are so helpful god bless u always.
Glad it was helpful! :)
Thanks alot , I am happy to learn this at long last
Glad to hear you are finding the material helpful 😊
Sir this video was inspiring I enjoyed it I understand basically most things
Hi Khia 😊
Thanks for your kind comment, I really appreciate it 😁
Super happy to hear you understood and even happier to hear that you enjoyed 🥳
Keep up the good work! 💪🏽🧠
You can do it 😊
Love the explanation
Thank you very much for your video. This video was very helpful and clear.
You're most welcome! Happy to hear you found the video easy to understand! :) Hope you're doing well.
Really enjoying your accounts videos so far. Could you do a video to just browse over the different ratios used in accounting though, please?
Hi! Thanks for watching! I have a video on ratios that I have to edit but I have a few things on the agenda before that. I'll try to get to it ASAP.
You’re the best❤
Thanks Shakera 😊
You’re very kind to say so!
I’m glad you enjoyed the video 😊
What did you find most helpful in it?
Are you sitting CSEC PoA this year?
Thank You Sir Appreciate This Video It Helped Me Alot👍🏿💯
Happy to hear you found it helpful 😊
Keep up the good work!
Just popping in to say bro you helped me pass my tests, got through it I think I seen more of you than my actual lecturer. Sound bud
Happy to know you found the videos helpful :) Wishing you the best of luck for the future :)
Am really grateful....May God Bless you more and more
Blessings to you too!
Where are you from?
Now I have control over my accounts!
I see what you did there 😉
You are the best bro
Thanks for your kind words :)
Wishing you all the best!
Thank you so much!!! This video really cleared up the topic for me. 🇹🇹
fruity_spirit you’re very welcome. Thanks for watching and I’m glad you found it helpful. 👍🏽😊
Fantastic video Sir! Very helpful indeed!
Thanks, Tshya! Keep up the good work!
@@adapttuition Thank you Sir🙏🙏🙏
You are amazing at what you do. Thanks alot
Thanks very much for that lovely comment :) I really appreciate it! Hope you're doing well.
This is way better than school
I appreciate that :) Trying to make poa easier to understand
Thank you soooo much sir this has helped me a lot😃✍👨🎓
You’re most welcome!
Glad you found it helpful😊
This is great understood each and everything very helpful
Glad it was helpful! Hope you are doing well!
Thank you sir this helped alot
Happy to hear you’re finding the content helpful 😊 keep up the good works💪🏽🧠. Thanks for watching
Thank you sir for the lecture, we really appreciate it. But I gave a question. Please sir after set-off, what do we do with the difference if there is any. Thank you.
Hi Kevin,
The difference after the set-off?
I'm not sure what you mean.
thank you, sir
truly grateful
Happy to be of assistance!
Wishing you all the best 😊
You can do it, I believe in you!
Sir can you do the whole CSEC Paper 1 &2 PoA 2019?
Hi, the paper 2 is already up 😊ruclips.net/p/PL9u_QIMhElltWoguWqsLdCnluHGw9df1D
I want to pass accounts and I neeeedddd help
Thanks for the teaching its really helpful. God Bless you
Tashana Galimore, you’re very welcome! And, thank you for the compliment! Where are you from and when are you sitting PoA?
@@adapttuition Am from Jamaica and sitting poa coming may 2020
@@tashanagalimore7204 Big up JA! :)
Thank you sir 🤝
Welcome 👍 :)
This really helped, thanks a lot!
Glad it helped!
thanks man such a genius u helped me a lot 🇯🇲🇯🇲
Happy to help! Thanks for watching 😊
@@adapttuition your welcome bro💪
this was very helpful ,thankyou .
You're welcome! Thanks for watching :)
Great video and love the jokes however at 29:30 you said that “received from creditors due to overpayment “is a increase in liability (CR) can you please explain more because it said we overpaid and the person we owe is giving back us our money so I would think that it decrease the liability.
Hi! Thanks very much 😊
Ok, so here goes
When we make the overpayment we actually decreased the liability MORE than we were supposed to.
So the problem we now have is that the liability is too low.
To fix that, we need to “undo” the error.
As such, we need to increase the liability to counteract the fact that it is too low.
Hope that help 😊
thank you alot sir for this explanation and keep up the good work! yuh iza boss
aadam mohammed thanks very much! I intend to keep up the videos. Glad you’re finding them helpful.
Where are you from and when are you sitting the exam?
@@adapttuition yes sir, they are really helpful. i am from sangre grande and i attend the institute of darul uloom. well with corona thing we have the exams in july,2020 and multiple choice only.
We will see how that goes. It might be very different from the past MCQ papers. Prepare well
@@adapttuition yes sir will prepare well, it might be even harder to attain a 1 or a distinction because the bell curve will raise as well as they(cxc) cud even add 100 mcq instead of 60
That’s correct. We don’t know what will come or how they will bring it. So best to be as prepared as possible
thank you really helpful
Happy to hear that!
I’m actually working this with my class right now!
Isn't he just the best😀
Thanks, Yaya :)
I appreciate that very much!
Hope you continue to find the other videos helpful as well
account gon be tuff tomorrow
How was it?
Thank you so much, may God bless you!
Hey, you’re very welcome. It’s my pleasure to help. What part of the video did you find the most helpful?
I had some problem with control account, now it is clear to me. Thank you very much.
I'm really happy to hear that :) Where are you from?
Am from Eritrea, but now in Kenya in studying ATD level one.
@@mhretfshaye9573 Wow! That's a long way from where I am but it's fantastic that the internet can bring us all together no matter where we are in the world. Best of luck to you and I hope you continue to get value from my channel :)
Hi Sir, at 35:15 where you added the set-off, can you explain why the Sales Ledger amount of $375 was added as opposed to the Purchases Ledger balance of $1050?
Hi 😊
Imagine I owe you $10 and you owe me $10.
We could just call it even, right?
We would essentially cancel the amounts owed to each other.
Now, imagine I owe you $10, but you owe me $12.
So for us to clear off the amounts owed, the easiest thing to do would be for you to pay me $2.
What we did there was cancel the $10 I owed you and we also cancelled $10 that you owed me.
This is how set-off works: we cancel the lower amount because it is was each entity owes the other.
It’s a cancellation of common debt.
Hope this helps.
Happy to help!
Yeh sometimes things don’t click the first time or two or three or four 😅
This was my next message to you I work out set of as $1050 but you double do the set of for the sales and not the purchase
It was an error on my part
I have to do a follow up video
hey@@adapttuition, so the 375 was wrong in the a/c rec control account or no? Im a tad bit confused
Explain the part of Interest and Refund in a bit simple way on the basis of why it is Debit and credit respectively in both the debtors and creditors account?
Debtors
If we charge debtors interest on late payments, then this increases the amount of $ that they have to repay us. As such to record the increase in the asset, we have to debit the control account.
If a debtor pays us too much money, then the credit entry will be too high. In order to fix that we need to debit the account to counterbalance that overpayment. So when we give them the refund we debit the control account.
For creditors the logic is reversed as creditors is a liability.
Hope that helps.
@@adapttuition Thanks for your nice explaination.
Thank.you.very.much.teacher
You’re very welcome 😊
this is very good
Thanks very much for your kind words 😊
Wishing you all the best!
Sir for the set off in the creditors control account why was the set off 375 instead of 1050?
Hi 😊. The set-off amount used in both accounts is always the lower figure if two figures are given.
Imagine I owe you $10 and you owe me $8.
All that would have to happen to clear off the amounts we owe each other is for me to pay you two dollars.
The $8 is cancelled from both sides as we both owe each other $8 (and I owe you an extra $2 making up the $10)
So we cancel the common debt which is the lower of the two figures.
Hope that helps.
Christ what can I say
My class mate and I call you our boyfriend lol 😂 (we are both married and are believers in Jesus Christ 😅)
Any way we start watching you days before our cxc exams 🤦🏽♀️CSEC and you help us to pass now we don’t get back out results as yet but with what you taught us we for sure pass
Thank you a lot God bless….
Basically, making a sale means dealing with customers, and making a purchase means dealing with sellers from the control accounts perspective?
That’s correct 😊
God Sent
Blessed by God 🙏🏽
Hello, Chris I noticed that you did not mention the 1050 that is on Escrow Purchase ledger you set off the 375 but what happen to the 1050?
HI Sherry :)
The lower figure is always the amount used for set-off, the higher one is not used.
@@adapttuition why is it not used
I don't know if anyone has asked this because there are a whole lot of comments but why does it say Closing Balance (Cr) when it's actually a Balance brought down for the next month? I know what to do now though, but I don't understand the logic. Is it that you can't have to balance c/ds on the same side?
The balance c/d simply closes off the account at the end of one period by make the dr and cr columns equal.
The balance b/d is the value that is brought forward from the previous period.
They are essentially the same thing
And no, the balance c/d and the balance b/d can’t be on the same side
It’s just not how it works.
Hi I clearly understood the examples work there one thing I did not understand was the off set y did u not used the 1050 for the last one u did or did I miss something plz help
Hi Tronda :) Ok, so that's a good question. For set-off when you are given the two corresponding amounts from the ledgers you use the lower of the two amounts because you are in essence cancelling a common debt (amount owed between two parties).
Let's say you owe me $8 and I owe you $8. We would just "call it even" because we owe each other the same amount and it wouldn't really make sense for you to give me $8 and for me to then give it back to you, right?
Now, let's say you owe me $8 and I owe you $10. In the end I would just give you $2. It wouldn't really make sense for you to pay me $8 and then for me to give you back $10.
So what we would have done in the latter scenario above is to cancel the $8 that we owe each other. We cancelled the lower of the two amounts; the common debt.
And, that's the logic applied in the last question as well.
Hope this helps.
Keep up the good work!
Ok sir I got it now thanks God bless u
Happy to hear that you understand 😊
my man in for the win again! question for you which country do you live in and where are you from just trying to decipher the accent? :)
Darren Kelly I am from Trinidad 🇹🇹 where are you from?
@@adapttuition I am from Ireland bud.
Darren Kelly excellent! One of my former priests is from Ireland. He moved back some years ago. Fr. Leo Donovan.
Sir I've seen examples of where they give the accounts in 1 table both debtors and creditors and they ask for the control accounts, I saw one and it had dishonored cheques and here you show dishonored cheques in both of the accounts do I put the 1 number in both of the accounts?
Hi, no.
Dishonored cheques are usually for the debtors control only.
However it’s possible one of the cheques “we” pay with could be dishonored.
In that case it would go in the creditors control account.
So you have to read carefully and the question has to provide you with info.
Thank you!!
You’re very welcome, Marsha 😊
Hi, in the last question, why was the setoff amount used as $375 for both accounts and the $1050 was not used in either.
Imagine I owed you $3 and you owed me $3. Since we owe each other the same amount of money we would just "call it even" and neither of us would have to pay the other anything. The amounts we owed each other cancelled themselves out.
Now, imagine I owed you $10 and you owed me $3. Instead of the both of us paying those amounts to each other I could simply pay you $7 and we would call it even.
The $7 was the difference between the amounts owed, right? But what's more important is what happened to the $3.
Long story short, just as when we both owed each other $3 in the first paragraph and those amounts cancelled each other out, that's what's happening here as well.
I owe you $10, yes, but that's like owing you $3 and $7. And since you also owe me $3 we can cancel the two amounts of $3 against each other.
That's what a set-off is, it's a cancellation of common debt.
In the question we owe creditors $1,050 and they owe us $375. So just as with the example above, us owing the creditors $1,050 is like us owing them $375 and $675, and since they owe us $375 as well we will just cancel that amount.
So since we're cancelling the common amount owed we will have to use that amount in both the control accounts.
@@adapttuition understood… thanks a lot
@Ryan-tl1oo happy to help!
Sir why did you use the same set off values for both accounts? 37:46
Hi Dev,
Imagine I owe you $8 and you also owe me $8.
Instead of both of us each paying each other $8 we would just "call it even", right?
ok
Imagine I owed you $10 but you still only owed me $8.
Now...consider that $10 = $8 + $2
So since we still owe each other $8 we will cancel that off, and I'll just pay you $2
That's what set-off is --> a cancellation of common debt.
We always cancel the lower amount as that is the amount owed by both parties to each other.
Hope that helps.
What app do you use is that excel?
Hi, yes, I use excel when teaching my accounting classes as well as recording my RUclips videos.
Very helpful 🔥🔥👍
Glad you think so! Wishing you all the best :)
why is the set off for the purchases ledger control account $375 and not $1050. Is that an error or your part or did I miss something?
Hi :-)
Imagine I owe you $5 and you owe me $5.
We wouldn't bother to pay each other the same amount, we would just "call it even"... cancel the debts owed to each other. Right?
Now imagine I owe you $7 and you owe me $5.
Think about it like I owe you $5 and $2.
As $5 + $2 = $7. Right?
So in a sense, we still owe each other $5.
I just owe you an extra $2 as well.
But we would still cancel the $5 between ourselves.
Now imagine I owe you $15 and you owe me $10.
We technically owe each other $10, and i owe an additional $5.
But we would cancel the $10 .. the LOWER amount. Right?
So it is with the set-off.
Set-off is the cancellation of common debt.
If we owe them $1,050 (the creditors/payables) and they owe us $375 (the debtors/receivables), then we owe each other $375 and we owe them an extra $675 ($1050 - $375).
But the $375 is what is cancelled.
It is the lower of the two amounts.
And that is always the figure that is used in BOTH accounts when accounting for the set-off.
Hope that helps.
P.S. you can listen to the explanation between 12:34 and 13:44 in the video and between 21:25 and 21:35.
Maybe that's the "something" that you missed? 😊
Very helpful
Glad you think so! Thanks for watching :)
My RUclips teacher, may i ask that why the contra entry, u use the number 375? Why not use the no. ( the difference between the sales ledger and the purchase ledger number?) or use the number 1050? Can u answer me, please? 😖😖
HI! Thanks for watching : ) I actually answered this question already but I know it might be difficult to find that comment, so I'll explain again :)
Imagine you owe me $10 and at the same time I owe you $8. So technically we both owe each other $8 and you owe me $2 extra.
Instead of you paying me $10 and me paying you $8 you will just pay me $2 and we will cancel the $8 we owe each other.
Does that makes sense?
Sir could you please send me the link to the past papers
What’s your email address?
Very helpful
Accounts boss 🔝😂
VICKASH Arjune Thanks very much. Glad you found it helpful
good say off topic i was on this video so i decide to ask anyway sorry lol. when doing bank rec. if the details in the cash book differs from the bank rec but the figures match, we should leave as it is. Example if you don't understand cash book has Rates (#46) 1500 and bank rec chq (#46) 1500. dat wasn't updated are it's because of the (#46).
Correct. If ALL the details between the cash book and the bank statement match then there's no need for a bank rec. But usually this isn't the case.
@@adapttuition **Good Day** Noted but not all the detail i was referring to just a single entry. thank you.