I hope you have found this video useful. Let me know if you have here in the comments. If there are any other methods, or another way you have learned Accruals and Prepayments, share them here for others to use and see too.
You saved me! I went nuts struggling with this this chapter, nobody managed to make me understand and lost all the confidence I could do this, until I found you! Oh, I can't thank you enough!!! You made studying pleasant again ❤👓🧠✏💡 Thank you tons!!!!👏🏻👍🏻🤗
Thank you! Your videos are great and really help with understanding, I've been staring at a text book over this and finally think I get it a bit more now after watching!
Thank you so much. You explained it really well, better than all my tutors. I have an advanced bookkeeping assessment tomorrow and now I feel that I've got enough knowledge to smash my exam 😁
Just found this and found it helpful except for the first example question? The task states account for the year ended December 2019 so can you please explain why you are doing January 2020? Thank you!
How Sophie, I'm glad you have found the video helpful and thanks for reaching out to ask a question to further help with your understanding. In the example, I am covering Accruals, where something has happened in the current financial year but we haven't recorded it yet. In the first example, £520 of wages have been paid in Jan 2020, which is after the 2019 year end but this £520 is relating to wages incurred in Dec 2019 , I.e and employee has worked through Dec but wasn't paid for the work they have done in December 2019 until Jan 2020, therefore, this is required to be accrued in the 2019 accounts. Hopefully, this helps? If not, please feel free to give me a shout. All the best with your AAT journey. Steve
I am studying AAT3 and my tutor said every year he teaches this part of the course, students always struggle to grasp this area. I admit, I struggled with it.
For the prepayment on rent expense in November 2019 £7710 you divided for 2 parts, November and December 2019 and January 2020. why you did not record 2570*2 = 5140 in expense account in 2019? Only you record £2570 on prepaid and expense account.
Hi Fatima, This is because only the Jan 2020 part (£2,570) of the Nov 2019 payment of £7,710 is prepaid and must be removed from Dec 2019 accounts. Both Nov and Dec figures remain in the account, therefore, don't require adjusting. With a prepayment we remove the part that isn't for the financial year we are working on. I hope this helps you?
On the prepaid expense section of this video you didn’t debit the 7710 payment in november for 3 months Nov dec jan , you only put the prepayment of 2570 on the credit side , am I wrong
Hi Janet, No, the prepayment will adjust the SOPL figure to represent what has happened in the financial year by taking out the figure that is not relevant to the current financial year, hence the prepayment adjustment reducing the current bank figure within the expense account and moving it into the SOFP as a current asset, something the business will benefit from in the next financial year.
I am sorry you are having difficulty with the sound. I have just checked the video on my mobile, computer and my TV and the sound plays fine and very clear. Have you checked the sound on the device you are watching the video on?
I hope you have found this video useful. Let me know if you have here in the comments. If there are any other methods, or another way you have learned Accruals and Prepayments, share them here for others to use and see too.
Wow I have and exam on Monday and this is the best tutorial I've watched so far. Explained so well to make it so simple.
Wow, such a lovely comment, thank you. I hope the exam goes well on Monday 😀
You saved me! I went nuts struggling with this this chapter, nobody managed to make me understand and lost all the confidence I could do this, until I found you! Oh, I can't thank you enough!!! You made studying pleasant again ❤👓🧠✏💡 Thank you tons!!!!👏🏻👍🏻🤗
Hey Di T, so glad this video has helped you get this area and you are enjoying studying, so many students struggle with it.
The best teacher ever. Thank you
Thank you! Your videos are great and really help with understanding, I've been staring at a text book over this and finally think I get it a bit more now after watching!
Hey Jennifer, glad the video has helped you crack this area. I sometimes find text book miss a simple explanation that a tutor can help with.
Thank you so much! I was struggling so much with this topic and you have explained it so well! :)
Thank you this made so much more sense ! Have you done a video on Depreciation ?
Bloomin marvellous, Cant thank you enough.
Hey Nicky, that is Bloomin awesome to hear ☺️. I'm really glad the video has helped you. 👍
Thank you so much for the clear explanation.
Once again Steve, thank you so much for this vieo!! :)
You are very welcome Tasha. I am super chuffed it has helped you get to grips with one of the hardest areas of Level to tackle. 🤘
Thank you so much. You explained it really well, better than all my tutors. I have an advanced bookkeeping assessment tomorrow and now I feel that I've got enough knowledge to smash my exam 😁
how did you do
@@alphachad7556 Got 96% and thanks to this video it helped me a lot x
Excellent
your video helped me a lot. Thank you so much :)
Very nice explanation
Thanks that was really helpful , finally I understand this :)
Yey! I am super pleased you finally understand this concept, it's not an easy one to grasp, best of luck in your studies Katalin 😁
not all heros wear capes✌😎 thank you so much. can you do a video for disposal of non current assets aswell pls.
Thank you, another amazing video 🙂
Thanks Kaylie. I hope you level 3 is going well?
Awesome video!
Just found this and found it helpful except for the first example question? The task states account for the year ended December 2019 so can you please explain why you are doing January 2020? Thank you!
How Sophie, I'm glad you have found the video helpful and thanks for reaching out to ask a question to further help with your understanding.
In the example, I am covering Accruals, where something has happened in the current financial year but we haven't recorded it yet.
In the first example, £520 of wages have been paid in Jan 2020, which is after the 2019 year end but this £520 is relating to wages incurred in Dec 2019 , I.e and employee has worked through Dec but wasn't paid for the work they have done in December 2019 until Jan 2020, therefore, this is required to be accrued in the 2019 accounts.
Hopefully, this helps? If not, please feel free to give me a shout.
All the best with your AAT journey.
Steve
Thanks man, so useful
You are very welcome Max 👍
You are terrific
I could friggin kiss you right now. That video was fabulous 🤣
Awesome Chelle. Glad you liked it so much 😁
Just put you on my phone and it sounds better. Must be my tablet. Thanks for responding! 😔
No probs. Glad it works ok now 👍
I am studying AAT3 and my tutor said every year he teaches this part of the course, students always struggle to grasp this area. I admit, I struggled with it.
For the prepayment on rent expense in November 2019 £7710 you divided for 2 parts, November and December 2019 and January 2020. why you did not record 2570*2 = 5140 in expense account in 2019? Only you record £2570 on prepaid and expense account.
Hi Fatima,
This is because only the Jan 2020 part (£2,570) of the Nov 2019 payment of £7,710 is prepaid and must be removed from Dec 2019 accounts. Both Nov and Dec figures remain in the account, therefore, don't require adjusting. With a prepayment we remove the part that isn't for the financial year we are working on.
I hope this helps you?
@@MomentumPGC but surely now the SOPL figure will be wrong
Thank you but the sound is very low even after making adjustments.
thank you
On the prepaid expense section of this video you didn’t debit the 7710 payment in november for 3 months Nov dec jan , you only put the prepayment of 2570 on the credit side , am I wrong
This will make the SOPL figure wrong won’t it
Hi Janet,
No, the prepayment will adjust the SOPL figure to represent what has happened in the financial year by taking out the figure that is not relevant to the current financial year, hence the prepayment adjustment reducing the current bank figure within the expense account and moving it into the SOFP as a current asset, something the business will benefit from in the next financial year.
I L O V E Y O U
😂 Glad you like the vid Whisky Slinky Doo 👍
Plz get a microphone...Can't hear you 😞
I am sorry you are having difficulty with the sound. I have just checked the video on my mobile, computer and my TV and the sound plays fine and very clear. Have you checked the sound on the device you are watching the video on?