2026 05 20 - PoA F5 - 2024 May P1

Ajouté : 2026-05-21

[00:00:02]All right.

[00:00:04]Back on the inside.

[00:00:08]Cool.

[00:00:09]Um what is this going on here now?

[00:00:13]Right.

[00:00:14]Uh I don't think anything there.

[00:00:16]Hold on. Wait. Stop.

[00:00:21]Right.

[00:00:22]Oh, I didn't sign in here.

[00:00:23]I know I forgot to do something.

[00:00:26]Oh, wait. Wait. Wait.

[00:00:27]Can you hurry up? It's 3:00. I want to start.

[00:00:34]This one, and then we go here.

[00:00:37]Wait, is it the same first question?

[00:00:43]These buggers.

[00:00:46]Mean and no.

[00:00:48]Mean and internal users now. Okay, cool.

[00:00:51]But the same first question, boy?

[00:00:55]All right, whatever. You know what?

[00:00:57]If they couldn't care any less, we just use that to all We just say thanks. How about that?

[00:01:04]I feel like that that should require a thank you.

[00:01:07]All right. Okay, Tik Tok, you're back up on the inside.

[00:01:10]Let me just send a paper here to the people them.

[00:01:14]Right. So, we're going back here now.

[00:01:18]Let's update my rule. Yeah, yeah, yeah.

[00:01:20]All right, so I see Nanya still here.

[00:01:23]All right. Faisal on the inside. Jacob still here. Jade still here. And then CJ Maya.

[00:01:28]Jonathan is here. I forgot to put Jonathan, right?

[00:01:32]And um Shazari still here and Zachary. Cool.

[00:01:36]Nice.

[00:01:38]Let me just tell Jonathan we starting back now.

[00:01:58]All right. Okay, folks.

[00:02:00]Let me just Hydrate, you bastard. Hydrate.

[00:02:04]All right, people. May 2024.

[00:02:07]Jari, May 2024.

[00:02:20]All right. Uh let me just open up the YouTube chat.

[00:02:26]No problem, Jari.

[00:02:28]>> [snorts] >> Right.

[00:02:35]We going to be in day.

[00:02:38]Right. So, we have another three three or five star time.

[00:02:42]We will see if we get like a 40-45 minutes.

[00:02:45]How long you think this will take? 38 minutes? Yeah. Okay.

[00:02:48]That's pretty good for six six questions, people.

[00:02:52]Again, [snorts] guys, even though we're moving fast tomorrow, take your time and read your questions, yeah? Sometimes they change one little thing.

[00:03:00]It's very rare they do that, but it still happens.

[00:03:03]So, you don't want to rush read people.

[00:03:08]Right. Kelly on YouTube. How you doing, Kelly? Good to see you.

[00:03:13]Three or two minutes or not too long ago. Didn't miss too much of that. Okay.

[00:03:17]Okay. Sorry, somebody send a a message.

[00:03:22]Did it? Somebody do that?

[00:03:25]Do you know?

[00:03:27]Okay.

[00:03:28]I don't know.

[00:03:29]Wow. All right.

[00:03:30]That I going to take that the sound off of there in case anything else comes through.

[00:03:35]Right. Kelly, we just did the Jan 2020.

[00:03:38]Oh, sorry. Mo. Yeah.

[00:03:40]Mhm.

[00:03:43]Mhm.

[00:07:44]>> Mhm.

[00:09:39]>> Mhm.

[00:10:35]>> Okay, sorry.

[00:10:39]Okay.

[00:10:40]Okay.

[00:10:41]I got it.

[00:10:45]Yes.

[00:10:46]A link for the past papers.

[00:10:49]You got to DM us for that boy.

[00:10:52]Got to put that in YouTube and Instagram and TikTok and all.

[00:11:00]All right.

[00:11:03]Folks, we did like tonight.

[00:11:05]Ooh, I treat them so yeah, but I thought I turn to some dirty duties and change the diet for that, so.

[00:11:09]There we go. First question here is the same first question from the Jan 2024 and from a few other peoples. So, it's the exact same thing. All right, so we still going to explain it piece by piece. Okay, so 3:11 start time, let me go. So, is a suspense account a control account? Um is a form of control account, but not in the same way as the regular ones.

[00:11:30]Uh it does help with correcting errors, not spotting them though or summarizing.

[00:11:36]So, I'm hesitant to say yes.

[00:11:40]I'll have to check that. That was an interesting question. I never got asked that.

[00:11:43]All right. Okay. So, yeah, we know the answer is C, but let's just show the working, right? So, the opening capital is 3,900.

[00:11:51]We do not know what net profit is. We know drawings is being deducted and then we end up with 4860.

[00:11:59]We know if we deduct 900 from 3,900, we end up with 3,000. So, to get the 4860, sorry.

[00:12:07]Right? We have to add 1860. So, we know the answer here is C. Sorry, one sec.

[00:12:15]Oh, I did I did check. Right. Okay. The main internal users of accounting information are managers. Loans, creditors, and accrued expenses are examples of liabilities. Okay, so again, for those who are new to it, we're not going to scroll down and scroll up.

[00:12:29]We're just going to do what's visible then scroll down.

[00:12:32]All right.

[00:12:34]For which of the following purposes are part Wasn't this on the same first page of Jan 2024, too? Yeah, same question five.

[00:12:42]People.

[00:12:43]All right. Um, so the answer is so combining capital from different persons, yes. Benefiting from different skills and specializations, yes. Sharing ideas, experience, and responsibilities, yes. So, D, all three. Now, we scroll down.

[00:12:55]Item four, which of the follow In which of the following financial statements would directors' remuneration be found?

[00:13:01]Profit and loss.

[00:13:02]Directors' current accounts? What?

[00:13:05]>> [snorts] >> Who is that?

[00:13:07]Anyhow.

[00:13:08]All right, total value of capital. So, capital is equal to assets minus liabilities.

[00:13:16]All right, so assets.

[00:13:19]So, machinery, furniture, debtors, right? Bank overdraft is an asset.

[00:13:24]Inventory and cash are assets and debtors liability.

[00:13:28]So, 20 and 5 is 25 + 3 is 28 and 10 is 38 and 5 is 43.

[00:13:36]28 and 15 is 43. And then 3 and 4 is 7, right?

[00:13:41]So, that's 36. Okay, cool.

[00:13:44]All right, so that's it for the first page.

[00:13:47]Good afternoon. Yeah, we're divine head and right. Okay, Jacob and Jonathan, are we okay with page one? All right. Google Meet and a lot of hours GH. Which is on Alexander and Zachary, sorry. Keep on going, sorry.

[00:13:58]We good? Okay, lovely.

[00:14:01]Let's move.

[00:14:04]Zooming in.

[00:14:05]Look at Peacock boy.

[00:14:09]Yeah.

[00:14:10]Zachary's not like a lagging in Peacock way. I can't tell you what the reason is. Anyhow, >> [clears throat] >> Right, what feature of a partnership implies that each partner can be called upon to liquidate personal property in order to pay for the business's debts?

[00:14:22]That is unlimited liability.

[00:14:25]All right. I haven't seen that question being asked, but that is the reason there. All right? In a limited liability company, which of the following groups of persons is paid first after net profit is determined? Preference holders.

[00:14:41]Rex, uh which Okay, 11 Peacock.

[00:14:45]Okay, so we know Peacock is is the 10 dollar one, right? How do we get that?

[00:14:48]It's a manufacturing business. So, the cost of materials is 1900, rent and rates is 2000. Sorry, hold on. Factory rates and rents total 2000. This is interesting.

[00:15:00]They put rates and rent and then factory rates. Okay, so we'll use the factory one.

[00:15:05]This is interesting.

[00:15:07]Because normally it would be um the cost of materials is that and then that be the second the second figure is the rents and rates and then they just give us factory wages, right?

[00:15:16]So, this is strange.

[00:15:19]Okay, so 1900 and 2000 is 3900.

[00:15:25]If we divide that by 640. So, you see why it's important to read the question.

[00:15:28]You see they did Yeah, then then a six, yeah.

[00:15:35]So, 3900 divided by 640, sorry.

[00:15:40]640.

[00:15:41]Yeah, so $6.

[00:15:45]Yeah, so you have to read carefully.

[00:15:49]Yeah.

[00:15:50]Ali, huh?

[00:15:51]Ali, oh you said enter the width. Sorry, yeah. Sometimes you got to give them a little blood.

[00:15:56]No worries, no worries, it's all right.

[00:15:57]Everybody works at a different pace, so that's why I give them a little extra few seconds. I understand that. I work kind of hard sometimes, too, so I said I try and slow down.

[00:16:08]All right, S and S Enterprises bought a motor vehicle valued at $250,000 to deliver goods.

[00:16:16]This three three years after purchase the motor vehicle was still being recorded at the original value. Which of the following had not been applied?

[00:16:27]I I don't know how to say prudence.

[00:16:32]So, you're supposed to depreciate it, right? So, they're asking you, okay, if you didn't depreciate it, what concept wasn't applied? So, that should be the matching principle.

[00:16:40]We know it's not business entity. The separate entity concept says that the the business is a separate legal entity from the owners and as such its records should be kept separate. That is not this. Consistency says you have to treat with the same Um sorry, Shaddy, which one? Number 11?

[00:16:57]Nah, it's six. Yeah.

[00:16:59]Uh in this case, right? Um consistency says you have to apply the same accounting treatment to the same items from year to year unless you have a significant enough reason to change. If you were doing straight line for an asset, you can't just change periods and balance unless there's a good reason or or keep switching.

[00:17:15]Right? Cost The historical cost concept says that asset should at the depreciated historical Well, then the the nuance is A.

[00:17:23]Asset should be shown at the depreciated historical cost in the balance sheet.

[00:17:28]So, yes, the answer is A.

[00:17:31]Well, it it's supposed to say historical cost.

[00:17:34]Now, prudence also kind of applies here because um prudence isn't doesn't just deal with the provision for bad debts.

[00:17:41]It's a similar thing, right? So, it has to do with valuing the assets correctly.

[00:17:46]So, I'm a little torn here. I'm leaning towards cost, but I'm also drawn towards prudence. So, I'll I'll send out to ask for this, right? So, I'll go with cost for now.

[00:17:56]Right? I And again, this it should say historical cost concept, not just cost.

[00:18:00]So, maybe that is included. Maybe it really should be prudence.

[00:18:03]So, I'll send out to ask for that, right?

[00:18:06]Okay. Um So, so if it's still being recorded at the original value, that implies it was not depreciated.

[00:18:17]So, yeah, I All right. All right. Okay. We'll come back to that. Which of the following are profitability ratios? Net margin, yes. Gross margin, yes. Current ratio, no. So, one answer only.

[00:18:32]Number 10. Which of the following items are examples of current liabilities?

[00:18:36]Mortgage, no. That's non-current.

[00:18:38]Accounts payable, yes. Accrued wages, yes. So, two and three only.

[00:18:44]Okay.

[00:18:46]Right. Which of the following is true of a credit entry? A credit entry decreases a loan, no. A loan is a liability, and credits to a liability account increase it. Increases cash at bank. Bank is an asset. Credits to an asset account decrease it. Same thing for C. Office equipment is an asset.

[00:19:06]Debits Sorry, [clears throat] credits decrease assets. So, D is correct.

[00:19:09]Decreases accounts receivable cuz it's an asset. if you credit it, it decreases, right? Okay.

[00:19:16]>> [clears throat] >> Okay. Uh Jacob and Jonathan, are you okay with page two? All right. Google Meet, give me a little feedback there, please, and thanks.

[00:19:30]All right, thank you.

[00:19:32]All right.

[00:19:33]So, I see some more on Tik Tok.

[00:19:34]Afternoon to everyone on Tik Tok. Okay, [clears throat] we're going again.

[00:19:39]Okay, so just three questions on this page, and after this page, we are 1/4 of the way through the exam.

[00:19:44]All right. So, items 14 to 16.

[00:19:48]Okay.

[00:19:49]So, the opening bank balance of a full of the Okay, so the opening bank balance is is sorry.

[00:19:55]Is here.

[00:19:57]The If you have a bank balance on the credit side, that's an overdraft.

[00:20:03]Right? Bank is an asset. Assets supposed to have debit balances. If you have a credit balance, that implies it's a liability, which means overdraft.

[00:20:11]All right. Okay. Um which of the Which of the following best describes the entries on May 8th?

[00:20:18]May 8th. So, I see and hold on. Let me get my highlighter.

[00:20:23]Okay, so we have money coming out of cash and going into bank.

[00:20:28]So, that's a contra entry.

[00:20:34]And what is the closing cash balance?

[00:20:37]Okay. All right. So, check this, right?

[00:20:40]1,500 + 250 is 1,750.

[00:20:45]50 and 100 is 150.

[00:20:48]That's how much we spent out of the 1,750.

[00:20:51]So, to find the balance, you take 1,750 and minus 150.

[00:20:57]That'll give us 1,600. Oops.

[00:21:00]1,600. Right, cool. So, the balance is 1,600. Cool. All right. Jonathan and Jacob, you good with this page?

[00:21:06]All right. Google Meet, and my quick little feedback there.

[00:21:10]Sorry, I thought I was taking a second there across here.

[00:21:13]Yeah? All right, cool.

[00:21:17]Right.

[00:21:19]Next page, 17 to 21. Oh Lord, everybody know this same badly worded question. A motor vehicle was credited. It means a motor vehicle was bought on credit from AG Motors for use in the business. How should this be recorded? Okay, if you buy a motor vehicle, that's an asset. It's increasing, so you debit the motor vehicle account. So, we are only we are only thinking about options A or D. Now, it was bought on credit.

[00:21:45]Right? That means we didn't pay for it.

[00:21:47]So, you can't credit bank. You have to credit AG Motors because if you bought it on credit, you didn't pay for it, which means you owe money for it.

[00:21:54]Anytime you owe money for anything, that's classified as a liability. And to record a you credit that account.

[00:22:03]18.

[00:22:04]A calculation to determine gross profit percentage, gross margin, right? Is that. What does the 529,800 represent? So, to get gross margin is gross profit over net sales. Again, the two is interchangeable thing, it's supposed to be net sales and not total sales, but that's the only possible answer in that question.

[00:22:23]The credit balance brought forward on P.

[00:22:25]John's revenue account is 25. This means that for the year 20, sorry, um 25 in rent revenue is prepaid.

[00:22:36]All right, a credit balance brought forward on a revenue account indicates a liability. How can a revenue have a liability or be a liability if they paid you in advance?

[00:22:45]If they paid you before you earned it, it means that you now owe them either the service or whatever or refund. And once you owe anybody anything, that's a liability.

[00:22:54]Prepaid revenue.

[00:22:55]Number 20. Which of the following items can be used to adjust the cashbook balance before a bank reconciliation is prepared. We saw this in the January paper, so we said um dishonor checks, standing order, bank charges, direct transfers.

[00:23:13]So, B, direct transfers and all that stuff. Bank lodgements and unpresented checks go in the bank wreck, not the updated cashbook.

[00:23:22]21, the debit side of a trial balance exceeds the credit side by 1,200.

[00:23:29]So, it means it the credit side is short, right? If the debit side exceeds the credit side, the credit side is short.

[00:23:35]A suspense account should therefore be opened with a balance of 1,200 on the credit side. So, the the the suspense account figure is put on the side of the trial balance with the lower total. So, if the debit side exceeds the credit side, it means the credit side is short.

[00:23:50]So, that's the side on which the suspense account balance will be put, and that will be the type of balance or the side on the suspense account on which the balance is brought up. Okay.

[00:23:59]Jonathan and Jacob, will you be okay with this page here?

[00:24:01]All right, call me.

[00:24:03]Let me know.

[00:24:12]Okay, thank you.

[00:24:14]All right.

[00:24:14]All right, folks. So, we are about 1/3 of the way through the paper in about 13 minutes, maybe 14.

[00:24:20]Not bad.

[00:24:22]So, [clears throat] yeah, we are running about 45 minutes.

[00:24:24]It's just that one question that wasn't worded back well that I'm not 100% sure about. We'll come back to it. Money spent on the buyer company on the purchase or improvement of a non-current asset is referred to as capital expenditure. So, they they reversed the question here. Normally, they'd ask about capital expenditure. We know that.

[00:24:41]Hey, as in you buy a non-current asset or improve the value to it.

[00:24:46]Significant improve.

[00:24:48]What is the rate of inventory turnover?

[00:24:50]So, inventory turnover is cost of sales divided by average stock.

[00:24:59]So, 30 + 7 is 37.

[00:25:04]The average of that is when you divide by two, you get 18,500.

[00:25:08]Also, again, if you have your calculator, please use it. So, now we have to divide cost of sales by 18,500. So, that will be 1.something.

[00:25:19]So, the only answer that looking possible is answer A.

[00:25:22]All right.

[00:25:23]So, 20 divided by 18.5 1.081. There you go.

[00:25:30]A. Okay. Again, we're going to do what's visible, then we'll scroll down to the rest of the questions, right?

[00:25:37]Yeah. So, the rate of inventory turnover is cost of sales divided by average stock. The average stock is opening plus closing divided by two. Opening is 30, closing is seven. 30 + 7 is 37.

[00:25:51]Divide by two will give us the 18.5. So, that's your denominator for rate of stock turn. So, to find rate of stock turn is cost of sales divided by average stock. You okay with that? All right.

[00:26:02]So, 20,000 divided by 18.5 is 1.08.

[00:26:07]Okay.

[00:26:08]25 refers to the following information taken from the manufacturing account of Sims Company Limited. Prime cost, factory overheads, direct wages. Okay.

[00:26:20]The cost of raw material This they have some new stuff on this paper, boy. So, prime cost would be direct materials plus direct labor and all direct wages, right? So, if the total prime cost is 89,850, out of which 66,000 is direct wages, when you subtract that, the remainder will be the direct materials.

[00:26:45]Interesting. I like it. I like it. See?

[00:26:49]Again, new questions, but the same principles apply, right? We use similar principles as to answer previous questions Sorry, questions on previous papers. So, it's not new, per se.

[00:27:00]Right? In terms of the concept, the concept isn't new. The question is new.

[00:27:04]Or maybe it's just a question we hadn't seen, but came in previous years, like prior to We did We did We did what? 2020, 2021, 2022, 2023. Oh, yeah, today is 2024, 2025, right?

[00:27:16]>> [snorts] >> Okay.

[00:27:18]Uh which of the following would be treated as a prime cost and as as a prime cost as part of prime cost? Direct wages, for sure.

[00:27:27]Well, they kind of gave that away above, didn't they?

[00:27:29]Okay, no problem. You want to give away marks? We'll take it.

[00:27:33]All right. Don't Um let's just do 27 first, now. Payments made to committee members in a cooperative is as honoraria, right? So, that one is a little new, um but it's not a new concept, right? So, the In In a cooperative, the committee members are the people who kind of work who who are members who work in the cooperative. And payments to them are called an honorarium.

[00:27:57]I mean, um item 24 refers to the What What amount will appear as purchases in the trading account?

[00:28:04]Okay. So, we have a cash purchases figure, and then we have some other information there to help us do credit purchases.

[00:28:13]Right? So, you have to do the control account. So, you're going to put the opening balance on the credit side, because again, creditors is a liability.

[00:28:20]Liabilities have credit balances.

[00:28:23]Um balance at NS 2,000.

[00:28:29]Cash purchases, right? So, that's that's a separate thing you're going to add after. Cash paid to the supplier is 15,000.

[00:28:39]So, purchases So, credit purchases would be the balance and figure. So, this is 17,000 here.

[00:28:47]And to get 17,000 you have to add 12,100.

[00:28:56]Right? And then to that we are going to add the 5,008 100 for cash purchases.

[00:29:06]Right? And that's 17,900.

[00:29:13]And that's option B. Okay. So, we had a new and some new questions on this page.

[00:29:17]All right. All right.

[00:29:19]Okay. All right.

[00:29:21]All right. In person, people. So, Jonathan and Jacob, are you okay with this page? Any of them you want me to re-explain, re-work anything, or are you okay?

[00:29:30]24. All right.

[00:29:36]Yeah. Yeah. One more time?

[00:29:38]One more time. All right.

[00:29:40]>> [clears throat] >> So, we will go to total.

[00:29:43]Go from scratch.

[00:29:46]Okay. So, what amount would appear as purchases in your trading account? So, purchases, you have two types, cash and credit.

[00:29:52]If you look in the table, they give you a cash purchases figure of 5,800.

[00:29:57]But they also give you some other balances there.

[00:29:59]And those balances will be used to calculate credit purchases. So, the creditor, so this is the the creditors control account.

[00:30:08]All right.

[00:30:11]Nice. So, the creditor at start. So, again, creditor is a liability. So, that'll the balance will be brought down on the credit side.

[00:30:21]Right. [clears throat] 24 is a bit much.

[00:30:22]Okay, Katie. I'll go through it again.

[00:30:23]No problem.

[00:30:24]Right. So, that's the balance at start.

[00:30:26]Balance brought down. Balance at end will be carried down from this side and then brought down on this side here.

[00:30:31]Cool.

[00:30:32]Um that's that. And then the cash paid to suppliers. So, again, when you pay back your suppliers, you're going to decrease the liability. To record that, you need a debit entry.

[00:30:42]All right. That's the payment to suppliers.

[00:30:45]So you have 17,000. Right. Now, the balance and figure on this side will be credit purchases.

[00:30:55]All right, and then it So So 17,000 minus the 49 will give us 12,100.

[00:31:02]Right, and then now total purchases is the cash purchases which is the 58 from the trial balance in the yellow there plus the credit purchases which is the 121.

[00:31:19]And when you add them together, you get 179.

[00:31:24]All right, you okay there now?

[00:31:26]All right. All right, Google Meet. Let me know if you're all okay with this page, especially that last one there.

[00:31:34]Yeah, okay, cool.

[00:31:35]All right. Okay, sorry. Hold on, just now.

[00:31:38]This laptop streaming laptop will Let me tell you it's going to die. I don't know why.

[00:31:42]Hold on, guys. Just on the battery alone. I got to fix this now.

[00:31:47]Okay.

[00:31:48]I see I need You know, the lightning thing come on telling me it's charging.

[00:31:54]Yeah, it had a bit of a That cable have a short or something. I don't know.

[00:31:59]I got to buy a replacement for that.

[00:32:03]Shift Shift this back across a little bit.

[00:32:07]Okay.

[00:32:09]All right, let me go again.

[00:32:13]Hey, look at petty cashbook, boys. C world worksheet they come on for them in 2024, boy. New questions.

[00:32:19]And then they are repeated.

[00:32:21]>> [laughter] >> All right, so the first piece is what is the total value of the float?

[00:32:29]The float is the impressed amount, the amount that's supposed to be in the petty cashbook, right?

[00:32:34]So if you look in the receipts column the balance brought down was 15 and then you put back 85.

[00:32:42]If you add that together, you get 100.

[00:32:43]So, this is the answer here.

[00:32:47]Right? The 85 in cash, which was received on 1st August, represents the restoration of the imprest.

[00:32:56]>> [snorts] >> And if if they had expenditure by the cashier for the month of July, I would have taken that too because in in August, it would have been reimbursed for July. Right? You could be reimbursed in the same month, but All right. Whenever the reimbursement takes place, right? It takes place.

[00:33:14]Okay. Um 1 2 3 as well. All right. By how much should the petty cashier be reimbursed at the end of August?

[00:33:21]So, at the end of August, we had to add up this.

[00:33:26]10 and 20 is 30. 30 and 14 is 44. 44 and 25 is 69. Plus 30 is 99.

[00:33:35]So, that is the reimbursement amount.

[00:33:37]How much have I spent is what needs to be reimbursed.

[00:33:42]All right. So, we have 53 paper in about 22 minutes. That's good time. That's good time.

[00:33:47]All right. Okay. Um Jacob and Jonathan, will you okay with this page? Yeah. All right. Google Meet, talk to me.

[00:33:54]Talk to me.

[00:33:56]Sorry. I I said me.

[00:33:59]Yeah.

[00:34:01]All right. Last half of the paper, let me see how we could sort it out.

[00:34:05]All right. Uh public limited company.

[00:34:08]Okay. So, back to repeat here.

[00:34:10]Issued a prospectus of ordinary shares as described in the following table at par value. If it was fully subscribed, it means all of the shares were bought and paid for. So, 200,000 by 2 is 400,000. 100 10,000 by 5 is 50 thousand. So, 400 + 50 is 450.

[00:34:33]The owner of business does not keep proper accounting records, but she knows her capital at start was 40,000.

[00:34:41]Her capital at end was 85,000.

[00:34:48]Sorry, one sec.

[00:34:52]And her drawings was 1,000.

[00:34:56]She just does not know what her net profit is.

[00:35:01]So, to find net profit, all right?

[00:35:06]So, 40 minus the 1,000 there will give us 39,000.

[00:35:12]And then to get the 85, you had to add 46,000. So, 46,000 is the net profit.

[00:35:21]Right, 33. Item 33 refers to the following information relating to the salary of different categories of workers.

[00:35:28]The direct labor costs. Okay, so machine operator is direct. That person is directly involved in production. They literally operate the machines.

[00:35:37]Supervisor, no. Maintenance worker, no.

[00:35:40]Accountant, not at all. That's not even production.

[00:35:43]So, the only one here that could possibly count as direct labor is the machine operator.

[00:35:49]All right.

[00:35:50]Okay, so those are the only three questions on this page. Uh Jonathan, Jacob, you guys okay with this page?

[00:35:56]Yeah? Google Meet? Just give me a little bit of a feedback there. Please, Jonathan.

[00:36:01]Yeah? All right, cool.

[00:36:04]Going again.

[00:36:05]Oh, we saw this question yesterday.

[00:36:07]What conclusion or conclusions could be drawn from the appropriation account above? Right, so the presence of preliminary expenses tells me this is a very old question.

[00:36:16]How many of you have heard about preliminary expenses in the analysis?

[00:36:20]Yeah, that was I didn't hear about it in form five.

[00:36:23]I don't know why they're anyhow, ignoring that.

[00:36:25]We have balance brought forward as your retained earnings plus net profit. So, eight So, that's nine as a total of 27,000 was available for distribution.

[00:36:39]Taxation reserve transferred to general reserve, preference share dividend.

[00:36:43]Okay. What company Company is engaged in profitable enterprise? Well, it seems so you make a net profit, right?

[00:36:50]Company is not doing too well. I mean, well, we make a net profit. It seems to be okay. More dividends can be given to ordinary shareholders.

[00:36:58]Um Okay, hold on. Let's check that. So, 10 and 4 is 14 plus 1 is 15 plus 6 is 21.

[00:37:06]So, that's 21,000 and then 450.

[00:37:10]So, that's how much was appropriated, right?

[00:37:12]So, if you take the 27,000 that was available and you minus the 21,450, it means your retained earnings would be um 5,550.

[00:37:23]So, yes, you could have paid more dividends to ordinary shareholders. So, item three. So, it's either C or D and I'm not leaning towards D because I don't think two is a thing. And as you could see, all three is not an option.

[00:37:37]So, it means that one of them can't be right.

[00:37:40]So, one and three.

[00:37:42]Profitable and more dividends could have been given. Cool.

[00:37:47]Yeah.

[00:37:49]Oh.

[00:37:51]Wages are usually paid Wages are weekly.

[00:38:02]Salaries are monthly. All right. And then yearly and annually are the same.

[00:38:07]Okay. So, they give us some paragraph here where you do.

[00:38:11]Okay.

[00:38:12]On June 1st, P. Shark I was supposed to P. Hawk.

[00:38:16]Uh sole proprietor owed creditors 4,300.

[00:38:20]During the month of During the month he paid 13,100 by check.

[00:38:26]At the end of the month he was still owing 2,700. Okay, so we have our next total. Then we just do a total purchases on our control account.

[00:38:32]So they give us the same type of question again.

[00:38:35]Right, that was about less than 10 minutes ago we see that. Okay, cool. So this is the control account here.

[00:38:42]Right.

[00:38:43]So he started off owing them 4,300. So creditors is a liability.

[00:38:47]Balance brought down on the credit side.

[00:38:49]Cool.

[00:38:52]During the month he paid them back by check. So if you paid them back it means you're decreasing a liability so you're going to go on the debit side to record a payment to them.

[00:39:00]At the end of the month he was still owing 2,700.

[00:39:04]Okay.

[00:39:09]So that's 15,800.

[00:39:11]So credit purchases would be the balance and figure here.

[00:39:15]All right, so that's I'll go back to my orange. So that'll be 11,500.

[00:39:20]Right, now that's just credit purchases.

[00:39:23]He also has cash purchases.

[00:39:26]So we're going to add 3,500 to 11,500.

[00:39:31]That's going to give us 15,000.

[00:39:34]All right, 37 but we kind of know the answer is 200 but just read the question and do it to be sure.

[00:39:40]So Mrs. Allen invested 20,000. Brown and Cable 5,000 each. The loss sustained during the year was 1,000. The partnership agreement is silent on the item of losses. Although profits are to be split in the ratio 2 to 2 to 1.

[00:39:52]Right, how much of the loss should be borne by Mrs. Okay, the profit sharing ratio is more correctly referred to as the profit and loss sharing ratio. So there's no separate ratio for sharing losses. It's the same as the profit sharing ratio. And what do we do with the numbers in the ratio? We add them together. So we have five. So that's Allen, Brown, and Cable. And then we take the key the the and put it over the total and I you multiply that by the loss. So, 1/5 of 2 over 1,000, sorry, is 200.

[00:40:26]Okay. Jonathan and Jacob, are we okay with this page, 34 to 37?

[00:40:30]Any Any question? Need clarification anything? Are we good?

[00:40:36]Good? All right, cool. Google Meet, talk to me.

[00:40:47]Ooh. All right, thank you very much.

[00:40:51]>> [sighs] >> I'm going again.

[00:40:53]Which of the following ratios describes the liquidity position of a business as the asset test, for sure?

[00:41:00]Rose boy, Rose gave 7,000 in cash and motor vehicle with 3,000. And what is the journal entry to record who contributed?

[00:41:08]So, cash and asset and motor vehicle are both assets. He'll debit cash 7, debit motor vehicle 3, and credit Rose's capital for 10. 7 and 3 is 10, right?

[00:41:19]So, that's option C.

[00:41:22]All right. Um Items 39 and 40 refer to the following information provided by K, a sole trader. Okay.

[00:41:34]Um So, what is credit sales?

[00:41:38]Okay. So, okay, this So, this page has a little bit of weak ends, all right?

[00:41:44]So, to find credit sales So, see, this is a kind of question that don't make sense for multiple choice, as far as I can see. They give you so much information, and you have to do a party account anyway.

[00:41:55]Anyhow, they give it to us, so it's either do it or don't, eh?

[00:41:58]All right, so the sales ledger debit balance is 3,000. Cool. Returns in goes on the credit side, as does bad debts, as does discounts allowed. Checks received from our receivable also there.

[00:42:13]And the sales ledger balance is 4, well, yeah, 4,000.

[00:42:18]So, that's the balance at end being carried down. So, on this side, you have 11,800.

[00:42:24]So, on this side, I want to get 11,800.

[00:42:26]We need to add something to the opening balance. What could that possibly be?

[00:42:30]That would be the credit sales.

[00:42:32]And that would be 8,800.

[00:42:38]On the 31st of May, it was discovered that a customer's check of 150 has been dishonored. What would be case updated sales ledger control? Okay, so, the any dishonored checks will go on the credit on the debit side, sorry. Dishonored checks.

[00:42:55]Right? Cuz it'll undo the receipt. The receipt was on this side here.

[00:43:00]And if if the check was returned dishonored, you have to cancel the credit. To cancel a credit or counter balance it, right? You have to debit the account.

[00:43:09]So, if you debit the account, it means that it's going to go up by how much? 150.

[00:43:20]So, therefore, your balance will go down by 150. So, 3850.

[00:43:32]Sorry.

[00:43:33]All right. So, with that, we are two thirds of the way through the people in about 32 minutes. Should I say 33?

[00:43:39]All right. Okay, that's not bad.

[00:43:42]So, 20 Again, 22 minutes for our third.

[00:43:44]So, we're looking at about an hour and an hour. Uh okay. All right.

[00:43:49]Let's see if you can finish it off, right? Okay. So, on the 2nd of March, El Lan bought goods worth 630 on credit. He receives a a 3% trade discount. And the invoice also stated 2% in 20 days, net 30 days. How much would El Lan pay for the goods if he pays on the 8th of March? Okay.

[00:44:07]He bought the goods on the 2nd.

[00:44:10]That's 630 minus a 3% trade discount. So, trade discount is calculated and deducted on the invoice. It is not recorded anywhere in the books. The net invoice amount is what goes in the books, right?

[00:44:24]So, 3% of 630 is 1890.

[00:44:29]That will give us 611.9.

[00:44:32]That is the amount. So, that is the net invoice amount. Sorry, one sec.

[00:44:46]Right. And it says 2% 20 days net 30.

[00:44:49]Okay, so 2% in 20 days means he gets an additional 2% cash discount if he pays by the 20th day.

[00:44:56]In 20 days or less, right?

[00:44:57]So, you have to find 2% of that.

[00:45:01]All right. So, Let's just double check, right? So, 630 minus Hold on, huh?

[00:45:13]Um.03 by the 630.

[00:45:26]Right.

[00:45:29]And then you have to take all 2% Okay, so it's That is 12.22.

[00:45:39]That is 8.6.

[00:45:42]That is 8.9 as 55. 98.

[00:45:47]Huh?

[00:45:49]Oh, it's 611.1. Sorry, my bad.

[00:45:53]Yeah.

[00:45:56]So, 598.8. Cool.

[00:46:01]Ooh, yeah. I feel a nasty kind of coming on there.

[00:46:04]Right. In a partnership agreement which of the following transactions is composed So, we saw this in a previous paper. You really think they have to do with share profits and losses?

[00:46:12]All right.

[00:46:17]All right, Jacob and Joshua, how are you feeling with this question here?

[00:46:20]Any issues, problems, or we Okay, yeah?

[00:46:23]Google Meet?

[00:46:24]You may Oh, sorry, this page. You know, let me know how this page went for you.

[00:46:26]If you need me to re-explain, let me know, it's not a problem.

[00:46:32]Except for the sleep.

[00:46:34]Hm.

[00:46:34]I think I got to take a walk to them, new class from 6:30, boy. Pressure?

[00:46:38]I really hope not.

[00:46:40]And there's not going to be going to be much of a break between now and the on the next paper, but I'll need a break to run up to them and come back.

[00:46:47]You know.

[00:46:48]Okay.

[00:46:50]Here we go. So, which account should depreciation be transferred?

[00:46:54]And it's office machines, yeah?

[00:46:57]If it was if it was factory machines, I'd say manufacturing. So, always read this question carefully. Office machines, that's the profit and loss, that's the expense section of the income statement.

[00:47:07]45, um data relating to the balances of Mary's for Mary's dress shop. Okay. What is the asset test ratio? Asset test ratio is current assets divided by current liabilities.

[00:47:18]Current assets, current assets, current assets. Liabilities. Okay, cool.

[00:47:23]1 and 8 is 9 and 3 is 12. 1.9 + 0.1 is 10.

[00:47:30]No, just one. Just two. Just 2,000. My bad. Wow. Wow. Yeah, that's the sleepiness. Of course, that will happen.

[00:47:36]Um 9 and 12, that's two. Okay. So, that's just 6 to 1.

[00:47:43]That's interesting.

[00:47:45]All right, so we threw quarters at the three people.

[00:47:48]All right. Um What? Item 47 refers to this. Okay. Um Montego calculates its allowance for doubtful debts at a rate of 2% of debtors, okay?

[00:48:03]Which will be the accounting entry for recording allowance in 2022? Okay.

[00:48:08]So, if you multiply by 2% here, we will get um 120.

[00:48:19]By 2% here, we got 100.

[00:48:29]Sorry. Um I am knocking out.

[00:48:32]Pressure, 140. Okay.

[00:48:34]So, to go from 120 to 100 is minus 20.

[00:48:37]So, it's a decrease.

[00:48:39]It's a decrease in the provision, which requires a a debit to the allowance to the provision account and a credit to profit and loss.

[00:48:57]I guess you might have a problem.

[00:49:00]Uh Oshane, 46.

[00:49:02]What was the current ratio?

[00:49:06]Wait, I did the wrong thing for 45.

[00:49:09]All that, Omar.

[00:49:10]KT, yeah.

[00:49:11]KT, I said you're very much correct.

[00:49:14]So, the current ratio, so I did this one first. So, my bad. My bad. That is wrong. I made a mistake.

[00:49:24]Let's number 45. Let me look.

[00:49:26]I was uh I was seeing it. I was seeing it. Sorry. Sorry, yeah.

[00:49:29]Um guys, I have a problem.

[00:49:34]Okay.

[00:49:37]Yeah, that's fine.

[00:49:39]So, back again, right? So, this one is 6:1.

[00:49:41]Yeah, so the asset test ratio would ignore inventory, right?

[00:49:45]So, then that would just be 11 / 2.

[00:49:50]Yeah, sorry. That would be 5.5:1. I don't know how I saw the other one.

[00:49:57]Oh, it's right there. So, maybe I I just watched you answer the wrong question.

[00:50:00]Kelly, thank you. Yes.

[00:50:01]So, how you finding P2 with Liberty?

[00:50:05]Life Yeah. Yeah, life is tiring.

[00:50:08]Paper two was not the best.

[00:50:10]It wasn't horrendous, but it wasn't the best.

[00:50:13]A debt is considered to be a bad debt if the account receivable fails to pay.

[00:50:25]All right, guys. We have 12 more to go.

[00:50:28]And I'm trying to wrap this up in less than 10 minutes. I got like a five somewhere.

[00:50:32]I don't know. All right, so 2024 may was a nice paper in terms of a little a little more involved than a little more challenging than the rest.

[00:50:40]All right, so we are 39. So, we are already past the the time for the Jan paper. That's okay. That's all right.

[00:50:45]All right, and okay, 49. In the records of the bank, the opening balance represents an asset. Well, it's a debit balance, so okay.

[00:50:54]What is the balance carried down at the end of the period? Okay, so if you add up the debit side, I get 16,600.

[00:51:04]This side will give us 17,400.

[00:51:08]Oh.

[00:51:09]So, we need a 800 on this side. Oh.

[00:51:17]So, 17,400 minus 16, 600 is 800.

[00:51:27]That'll be an overdraft, which would should be a credit balance.

[00:51:31]So, credit to 800.

[00:51:34]All right, guys. We're in your last 10.

[00:51:35]We're in your last 10.

[00:51:37]And then we have two more to go.

[00:51:40]All right.

[00:51:46]>> [snorts] >> Sorry.

[00:51:50]All right.

[00:51:52]Let's follow through this 10.

[00:51:54]And again, just like I did this, I'll point out any mistakes. Uh if you don't have any mistakes persistent, right?

[00:51:59]All right, 52. What is the cost of production for Jessie Manufacturing? So, prime cost plus overheads plus this minus that.

[00:52:09]Uh this is irrelevant, that is irrelevant. 20 and 15 is 35 plus 5 is 40 minus 3 is 37.

[00:52:18]If revenue expenditure is overstated, which of the following items would be affected? Profit. Revenue expenditure is simply that list of expenses in your income statement. Overstated means it's too high. If it's too high, it means you'll subtract too much from gross profit to find net profit. So, your profit will be too low.

[00:52:37]Right? Sales isn't affected, and neither is inventory and working capital.

[00:52:43]Right?

[00:52:44]Nice. Okay.

[00:52:47]All right, 51. Refers to the following list of bosses. Based on the information above, working capital, right? So, working capital is current assets minus current liabilities.

[00:52:59]Asset, asset, asset, liability. Okay.

[00:53:02]Um 5 and 2 4 is 7 4 7. So, that's 12.

[00:53:10]And then that's 5 5.

[00:53:15]So, 6 500.

[00:53:18]That should be The total of the returns outwards journal is transferred to the credit side of the returns outwards account.

[00:53:29]Okay.

[00:53:31]All right, Jonathan and Jacob, if you good with this page, let me know. If you need me to explain anything, let me know that, too.

[00:53:37]You good?

[00:53:38]Huh? I'm good with this. All right, Google Meet talking. You there?

[00:53:42]On this page?

[00:53:59]Oh no, um Kelly When they say debit okay, they're talking about the balance brought down.

[00:54:05]So yes, you would you would have to add a 800 here, but that'll be the balance carried down. When you bring it down, it'll be on the credit side.

[00:54:12]So it's not a debit balance. When we talk about the balance of an account, we refer to the credit brought down balance.

[00:54:19]Okay?

[00:54:21]All right, we're in the last five or six questions. What is the closing capital of KD? Okay. So now it's a little softball question. So opening capital minus drawings minus net loss.

[00:54:31]So if you're minusing both of them, you're minusing a total of 2,000 which gives us a nice 1,000 figure.

[00:54:39]All right, 58.

[00:54:41]Okay, we saw this question like four times already.

[00:54:44]Asset purchased for that depreciates at a rate of 10% per annum using reducing balance method. What is the book value of the asset at the beginning of the third year? So in year one, you start off with a thousand and you lose 10% which is a hundred.

[00:55:00]So now you have 900 left.

[00:55:02]At the start of year two, you bring down your balance at the at the end of year one.

[00:55:06]You again minus 10%.

[00:55:12]I got 810. So that's the balance at the end of year two, which becomes the balance at the start of year three.

[00:55:28]Um let's do 59 first now.

[00:55:31]It is the private demand charity. Okay, what is the charity's closing bank balance at the end of the year.

[00:55:40]Um open and operating expense. So, come to mind, Philip. So, that's a that's a negative there.

[00:55:46]Receipts receipts receipts. Okay.

[00:55:49]So, this item and this little council even I suggest it is 11,000 as the balance.

[00:56:00]Sorry.

[00:56:02]Why is this B and not C? So, Mikey it Wait, are you Mikey online?

[00:56:09]Just hold on. Let me see what Mikey talking about here.

[00:56:21]No, it's C. You don't know Mikey you're correct. It's C.

[00:56:25]There's no A and B, right?

[00:56:27]Now I see.

[00:56:29]See.

[00:56:32]Compare this.

[00:56:42]I've got a hat here. I've got a hat I'm going to shoot in the video. I can't do that now.

[00:56:46]Yeah.

[00:56:48]So, yeah, three and five is eight and three is 11, right? Yeah, Mikey pick up a error on the papers from yesterday, I think.

[00:56:55]Or was it from today? I'm not even sure.

[00:56:57]Right, 56 and 57 refer to the following information which shows receipts and payments. Okay. What is the opening bank balance?

[00:57:06]So, they started with the closing balance. Donations, fees collected, receipts from essays.

[00:57:12]Okay.

[00:57:14]So, all of these uh inflows.

[00:57:22]All right? And then the these items here are outflows.

[00:57:32]So, if you start with the opening balance, so let's put OB as opening balance, right? So, OB.

[00:57:39]So, 2 and 9 6 is 11 6 plus the 4 is 15 600.

[00:57:45]I'm minus in the 2 and the 6 is 8, right?

[00:57:50]That gives us 10,000.

[00:57:53]So, if you just add backwards, right?

[00:57:55]So, 10 and 8 is 18. 18 minus 5 6 is actually 2 4.

[00:58:01]All right, so What is total capital expenditure?

[00:58:21]Well, we purchased photocopiers. That's the only thing that could be capital expenditure.

[00:58:26]All right.

[00:58:30]Okay. All right.

[00:58:32]Um check a bunch of stuff. How much for that one?

[00:58:37]Right. So, they give us the clues, then.

[00:58:39]The three yellow items are the inflows.

[00:58:42]The two green are the outflows, right?

[00:58:44]So, normally you go opening balance just now plus the inflows minus outflows, right?

[00:58:51]So, if you started with the ending balance, closing balance, right?

[00:58:55]I had to work backwards. You just reverse it. So, you take your 10,000, add back the 8, and then minus the 15 6.

[00:59:01]Yeah?

[00:59:02]All right. Okay. Oh, yeah, sorry. Google Meet. I know I was supposed to do something. Just if you have any questions, let me know.

[00:59:07]And just one more.

[00:59:10]So, inventory was purchased from M.

[00:59:12]Smith on credit. But, okay, we saw this already a couple times, right? So, this is an error of commission.

[00:59:17]So, if you purchased something on credit from M. Smith, you were supposed to credit M. Smith.

[00:59:23]But, we credited N. Smith.

[00:59:26]Well, that's 2020. All right, I'll check it this morning, right?

[00:59:30]Sorry.

[00:59:33]Oh, there will be no recording. Okay, so yeah.

[00:59:38]Yes, that's correct. That's correct.

[00:59:40]Yeah.

[00:59:41]Thank you.

[00:59:43]You are in game.

[00:59:45]Sorry, yeah. So, you were supposed to credit M. Smith, but you credited N. Smith. So, you have a credit here that shouldn't be there.

[00:59:52]How do we undo a credit?

[00:59:54]By debiting. So, we supposed to debit N.

[00:59:58]And we were supposed to credit M., but we didn't. So, how do we fix that? By crediting M. So, debit to N. And credit to M.

[01:00:07]All right. So, it took about 49 minutes almost almost the full 50 minutes there.

[01:00:13]I mean, we give a 90 for the exam. So, I mean, that's just about half the time a little more than half the time. So, that's not bad.

[01:00:20]All right, minus a couple of little things here and there. All right.

[01:00:23]Hooks here. Um I'm I got to take a break.

[01:00:26]So, I might need like a 10 minutes here to be honest.

[01:00:30]So, take a break, get a little water, use the bathroom, walk around, wake up, etc. Look out for the course. Look out for the course. I'm going to close this live off off TikTok and and YouTube. And I'll start a fresh one with a fresh label for Jan 2025.

[01:00:45]All right.

[01:00:46]All right, so Google Meet.

[01:00:49]All right, you know the drill, right? Uh