@@adapttuition good afternoon sir why do we use balance as per bank statement My teacher said the business can not use the balance as per bank statement because it is not a record of the business Please explain to me. Thank you.
Hi, as far as I know there is no such rule but if your teacher insists that you use the balance as per cash book then do so. To me it doesn’t matter which way it is done. And, in any case in order to update the cash book we must have the bank statement. And, if we have the bank statement we have the balance as per bank statement. Also, the bank reconciliation statement is not a financial statement governed by any international account standards and as such there is no one right format. Again, if your teacher insists you do it his/her/their way that’s fine. It’s good to know how to do it both ways anyway.
Please don't ever stop bringing us these videos. You explanations are the best I've heard from any Accounts teacher I've encountered. Thanks a lot for all you've done!
Good Lesson. My teacher gives special names to the missing entries from bank statements such as unpresented checks and unposted deposits, rebates , standing order and bank charges. These names help me to find the entries quickly on either statement.
Sir your explanations helped alot in getting me to understand, thank you. Tomorrow is my POA CSEC paper 2, so if i come across bank reconciliation statement i would mostly be able to mash it up
Why didn't my sir explain like this? It felt like he was speaking French when he did. Just understood the concept from you, Thank you sir, much grateful!❤
thanks for reassuring us that were enough! I usually get scared to practice questions because I feel like ill mess up,... but as you mentioned is part of the process! thanks for your amazing videos!🙏🏽☺
Hey :) You're most welcome! And, yes! Mistakes are a perfectly normal part of the process, don't be afraid of them. We can learn a lot from them if we allow ourselves to :) Keep up the good work 💪🏾🧠
Ty so much for this Sir. I'm doing exams this year 2022 and this topic is on the list for CXC. My teacher now taught us this format for the first time today. All we knew, was that the bank statement was always the opposite of the cash book where cash book is an asset and when it increases you will debit but in the bank statement you will credit(do the opposite) but never actually taught us the format until today. You explained it so well and I always come to you when I don't understand and you explain it so well. You are also a very funny teacher. Much respect from Trinidad
Hi Kyla 😊 Thanks for your awesome comment ❤️ And much love from a fellow trini 🇹🇹 Happy to hear that you’re finding the videos helpful and understanding the concepts and explanations. Keep up the good work 💪🏽🧠 You got this 👍🏽😁 Wishing you all the best for exams and beyond! 🥳
@@adapttuition Sir, Since I'm doing CXC this year, Would you say CXC is hard?. Cause exams starting for me next week Tuesday and I'm a lil nervous. Not that nervous to say I'm gonna fail my subjects but just nervous as in what if I get too Nervous in the exam that I forget etc. My parents tell me not to be nervous but at the end of the day, they're not the ones writing the exams 😭.
Hi Kyla, You’re correct, they’re not sitting the exams, you are. They are also “correct”, being nervous to the point where you blank out isn’t helpful. The challenge is to find that sweet spot and maintain it where the nervousness motivates you to do work, but you don’t let it overwhelm you. My opinion is that that is actually one of the more important things you are learning from this whole experience. How to manage your time, resources and emotions. Keep fighting the good fight. You’ll be fine 😊
I got right my first bank reconciliation qn ☺️, thanks to you sir 🙏. I really dont know why did i take this long to finally find you, but am glad am not late yet 😊.
thank you for this video, it really helped me understand bank rec better. I used to watch your videos during high school but I'm back watching your videos in post secondary as well. Thank you!!!!
I understand this man alot. Thank you for helping me in my forthcoming exams that I have to sit in 25.01.2021. Account & Control - paper Name KNEC exam- Kenya National Examination Council. Module 3
@@adapttuition I already did the KNEC exams was proud to perform the adjustment being sure of it, though I don't work on Bank Reconciliation...But it's my prayer, Will perform the best!!! Still following you to learn much about Cost Accounting and Quantitative Techniques! Can't thank you enough!
Excellent! I had a lot of trouble with this topic in school too as I mentioned in the video. But thankfully I finally understood. Hope you continue to learn and prosper!
Hello Sir. I have a poa exam tomorrow, but I've been pondering about this question for the past month. Not knowing whether If a balance in the cash book is credited, do you debit or credit the revised cash book balance. Aswell in vise versa with bank statement and bank rec?
Hi! A balance in the cash book is debit balance unless they specifically state that it’s an overdraft. Similarly, a bank statement balance is a positive / credit balance unless they specifically say it’s an overdraft.
You’re most welcome 😊 I had a hard time with this topic too when I was a student. Glad you were able to understand it better 👍🏽😁 Keep up the good work 💪🏽🧠
Happy to hear that you are understanding it better now 😊 I had a lot of trouble with this topic and ignored it for years. Thankfully I was able to finally understand it 😊 And, I had to share the understanding to help others too!
Happy to hear that! I also used to have a lot of trouble with this topic back in the day. It’s only when I left secondary school and went to UWI that I finally understood it. So I really felt compelled to help others understand it too. Glad to hear you understand it better too now! Keep up the good work 😊
The balance of the cash book is an overdraft of $765. The bookkeeper has identified an error whereby a customer receipt of $78 was recorded twice. In addition uncleared lodgements of $347 have been identified. What should be the overdraft on the bank statement? See the ans below but I can’t seem to understand why the bank overdraft is 1190. Please explain in detail.
HI! Did you check the other videos in this playlist? I dealt with errors like this in the other videos. Let me know if you find them and if they help you with this issue.
But, consider this: the overdraft is a negative balance so think of the bank balance as -$765. The error where the receipt was recorded twice is fixed by subtracting $78 from the -$765 thus eliminating the double counting of the receipt. The uncleared lodgments are increases in the cash book that are not reflected in the bank statement. So to "equate" the information you either add the lodgments to the bank statement balance so that both the cash book and the bank statement have the increases OR you subtract the lodgments from the cash book balance so that neither the cash book nor the bank statement have them. So the bank statement balance would be arrived at using the following working: -$765 - $78 - $347 = -$1190
Since I had subscribed the channel. Can I get 1. Ledger preparation 2. Journal entries 3. TRADING, PROFIT, LOSS ACCOUNT with Accruals, prepayment, Outstanding, adjustment, provisions,
Hi! Thanks for subscribing :) I have an entire playlist dedicated to the income statement (the trading and profit and loss account) with adjustments already. Check out my playlist section. The other items are in the works and will be out during the course of the year.
Hey @scottmccarthy7091 You're very welcome :) And, yes, I use the names to inject humor, because when we laugh we're more likely feel good and we remember things better when we are in a good mood. This topic gave me a lot of trouble and I was only able to figure it out when I went to University. So when I finally understood it, I told myself I had to share my understanding with others and help them with it as well. Thankful that my objective is being fulfilled! Wishing you all the best :D
HI, that's the balance carried down in the account. Add up the items on the debit side (14,000 + 1,000 = 15,000) Add up the items on the credit side (1,300 + 500 = 1,800) Then subtract to find the difference (15,000 - 1,800 = 13,200) Hope that helps.
I have those available on my Facebook page. fb.me/adapttuition.com Or go to my Instagram @adapttuition and go to the highlights. One of them will show you how to get to the solutions on my Facebook page.
Hi! Bank lodgments are amounts we put into the bank that haven't cleared yet (or amounts we have collected physically but that we haven't deposited in the bank yet). An unpresented cheque is when we have paid someone with a cheque and they haven't carried it/presented it to their bank yet. Hope that helps.
Hi! I’ve heard that teachers have been using my videos to teach their classes. I’m happy that I have provided a resource that ppl are finding useful. Best wishes to you.
Hello, example you have 200,000 sales then sales return of 50,000 and there was an error of 20,000 returns that was corrected on debtor account but sales figure was not corrected. What do we do on sales
Hi Erick 😊 That’s a great question Help me a little bit by telling me whether the $20,000 error on sales returns was an overstatement or an understatement. Or was sales returns supposed to be $20,000?
I did it your way and got matching figures on my back recon, however my teacher doesn't want it that way, am doing fundamentals of accounting at utech, please can you do it where the bank statements match please. If you know what am talking
@Attebailey16 yeh, if you watch the other videos I think I do it that way. But there’s no one right way to do a bank rec. there’s no reason for a teacher to insist on it a particular way if you can effectively do it correctly. But then again, maybe there’s something on your syllabus that I don’t know about that requires you to do it a specific way? But once you understand the fundamentals you’ll be fine regardless of the method used.
Yessss, just what I had anticipated! Thanks a lot... Also, I am clueless about how you added Wynn's account and transport to the bank recs. Also, what is direct transfer? We've only been taught about credit transfer or giro transfer...
Credit transfer and direct credit transfers are the same thing. A bank giro according to google is an instruction to a bank to credit an amount to someone's account. So essentially it's like a direct deposit. For Wynn and Transport it's probably because those were items in the Cash Book that were not present in the bank statement. The theme behind what I was doing was looking for the uncommon items (the items that were present in one place - Cash Book OR Bank Statement - that were NOT present in the other) and "putting them in" the other place, thereby making everything "common". In other words making sure all receipts and payments were in both places (cash book AND bank statement). Hope that helps.
Just starting to learn accounting and banking and I know absolutely nothing. How did you get the Balance c/d of 14,000? What does balance c/d mean? How did you get the 30,000 figure? And why do you bring the balance b/d down in the first place?
Hi Nicholas :) Thanks for asking these questions. Let's see if I can answer them. Ok, so let's go in reverse order because things might make a bit more sense if I do. The balance b/d (b/d meaning brought down) at the start of the period is the opening balance in the account. Imagine you were trying to keep track of your cash (and let's just assume the cash in your wallet for now). The balance b/d is the amount of money you have in your wallet at the start of your day before any spending takes place. We put a balance b/d as our starting point to know how much money we started with. The $30,000 figure is the total of the dollar figures on each side of the account. On the debit side of the t-account: $15,000 + $2,000 + $7,000 + $6,000 = $30,000 On the credit side of the t-account: $2,500 + $1,800 + $10,000 + $1,700 + $14,000 = $30,000 Balance c/d (c/d meaning carried down) means the amount of money you have left in the account at the end of a period, or again in your wallet at the end of the day if you think about it from the perspective of keeping track of your money. The debit side shows the inflows into the account (your wallet) which includes the opening balance (the amount you have at start) and the credit side shows the outflows (expenditure) including the amount you have left at the end of the day (the balance c/d). The balance c/d is not an expenditure item but it can sort of help some people to think of it like the amount of money you take out of your wallet at the end of the day when you count it. If that doesn't work for you that's ok. In terms of a calculation for the balance c/d of $14,000 you can think of it like this: You started the month with $15,000 in your account You had the following inflows: Tom paid you $2,000 Yu-no paid you $7,000, & Wynn paid you $6,000 For a total of $15,000 in inflows You had the following outflows: You paid rent $2,500 You paid electricity $1,800 You paid salaries $10,000 You paid transport $1,700 For a total of $16,000 in outflows So you started with $15,000 in your account, you received another $15,000 (so now you have $30,000) and you spent a total of spent $16,000 The amount you'd have remaining is $14,000 ($30,000 - $16,000) And that's the amount of money you have left in your account at the end of the period and which is present in the account at the start of the next period. I hope that answers your questions. :)
Hi :) Again... it would be helpful if you put a time stamp like 31:36 so I can click on it and go directly to what it is you are asking about. To get that figure I started of the bank rec statement with the overdraft balance of ($4,500). There was one inflow of $8,000 which was added and three outflows which were deducted (12,200, 1,800, & 2,500) So the working was as follows: -4,500 + 8,000 - 12,200 - 1,800 - 2,500 = -13,000 Since it is a negative figure this indicates that it is an overdraft Hope that helps.
Only cross out anything that matches between the cash book and bank statement. So for instance, if there was one $500 item in the cash book and four $500 items in the bank statement (let’s assume all inflows) the we can only cancel one $500 figure in the cash book and bank statement. The other three in the bank statement will have to be dealt with otherwise.
Chris that 13,200 in the bank reconciliation can we not write it as the balance c\d, l dont get why we have to wirite it as balance as per updated cash book
Hi :) That's a good question. The bank reconciliation statement is not an account like the cash book or any other t-account in which balances go down from one period to the next. The bank rec is a statement, a calculation, which shows that we know why the balance in the cash book (balance as per cash book) and the balance in the bank statement (balance as per bank statement) don't agree. As such, since it's not an account which carries information from one period to another and it is simply a statement which reconciles two balances at a point in time it wouldn't be appropriate to use the phrase "balance c/d" as that implies that the balance is being carried down (in that statement) to another period which it is not. The statement "only exists for that point in time" and as such it has neither an opening nor a closing balance.
Hi :) Please put a time stamp like 14:51 so I can click on it and go to the part of the video that you are asking about. This is especially helpful when it's a long video like this. Thanks :) The $13,200 was obtained by balancing off the account which I mention at 14:53. To balance of an account: - add up the items on the debit side - add up the items on the credit side - subtract (DR total - CR total) - if you get a positive figure put it on the credit side and label it "balance c/d" - if you get a negative figure put it on the debit side and label it "balance c/d" Hope that helps :)
Hi Nicardo, it can be, yes. But a statement of account is a statement detailing the details of an account, whether it’s the bank account or some other account. You can give a debtor a statement of his/her account.
Hi 😊 Add up the items on the debit side ($3,500 + $9,000 = $12,500) Add up the items on the credit side ($5,000 + $500 = $5,500) Then subtract ($12,500 - $5,500 = $7,000)
Happy to help! I’ve gotten so many questions on how to balance off t-accounts over the years. I really need to do a tutorial on that But hopefully you understand a bit better now.
Hi, no, you can start the bank rec with whichever balance you prefer whether or not it’s an overdraft. I just prefer to start my bank rec with the bank statement balance generally
Ah, ok cool cool Well I’m glad you figured it out This topic was very hard for me when I was in form 5 but thankfully later on I was able to understand it a lot more.
Ok question so if u start in the bank rec with the balance per bank statement basically it would be the opposite of starting with the balance as per cash book (adding unpresented cheques and lessing back lodgements)?
Hi! 🤔 I rarely use any texts as I find most of them a bit difficult to read. I create my own material. But if I had to recommend one it would be the Frank Wood and Sheila Robinson book - principles of accounts for the Caribbean (I think that’s the name)
I have a question sir, 38:08 - 53:48, how would I know if I should put the information on the debit or credit side when done like that? I might get a little confused as to which side to put it😅
Hi, if you watch the video I explain what goes where and why. It is a lot of information but again if you endeavor to understand what each item means instead of trying to memorize what to do that will help.
I totally hear yah. If you listen to to my little talk at the start of the video I definitely did not understand this topic for all of form 5 & 6. It’s only when I went to UWI i found the textbook explained it very well and I was able to understand it. Don’t worry, you got this! I believe in you 😊
Hi Mikai, Are you asking if you put all the increases from the cash book in the bank rec statement if that would be a correct way to do a bank reconciliation statement? If so, then I would have to answer, no. The bank statement will have some items that the cash book has and vice versa. So if you just dump all the debits from the cash book in the bank rec then you'd be including items that are already in the bank statement. The point of the bank rec is to indicate the differences between the cash book and the bank statement. Hope that helps.
Hi, if you watch this video and the others on this playlist you should be able to at least attempt the question. Watch the videos, try your question and then let me know how it goes.
I actually did attempt the question but the issue is that the bank balance is an overdraft and based on what the two remaining items say, when I input them I am not coming back to amount updated on the cash book.
@@ethancolaco14 Like i said at the start of the video, in Form 4 & 5 I had no idea how to do bank recs. I'm sure if you watch this video and apply the principles you'll be fine. I'm supposed to be doing a follow up to this video this week (if I get time). Look of for that one and see if it helps. It deals with NSF (dishonored cheques) and errors made in the cash book & bank statement.
sir my teacher said we should always start with updated cash book balance and if its credit,add all the debit entry in bank statement and less credit.but when i do that im not arriving at the bank statement balance like the one in #2 i got 21500 when i did that method but when i add all the increase less decrease i got back the original bank statement balance.so what should i do nd would direct debt(money paid by bank on behalf firm to creditors)be an increase or decrease. also is proposed dividend owing subtracted from the dividend it self or is it just added as another appropriation
There is no one correct way to do the bank reconciliation statement. You can start with whichever balance you want. However, if the question asks you to start with a particular one, then you need to do so. Starting with the updated cash book balance in my opinion is the harder, less intuitive way to do a bank rec. But it can be done. Learning why we do a bank rec and how we go about it is more important than memorizing procedures. But sometimes when we don't understand we need to memorize and apply. Your teacher's method seems to very a bit inefficient with adding/deducting ALL the items, but it is a valid method. If it doesn't work for you, then don't use it. Your teacher isn't marking your CSEC paper.
Your videos are brilliant but there is one question I cant get my head round. Would really appreciate help from anyone. Priya is preparing her bank rec. The bank balance in her general ledger is £422 overdrawn. The only item that need to be dealt with are: - A payment to a supplier of £822 that has not yet appeared on the bank statement. - Interest received of £153 that was credited to the bank, but not yet recorded/ what is the closing balance on Priyas account. Answer = £1,091 overdrawn.
Hi! Ok, so her cash book balance is $422 (Overdraft). The $822 is an unpresented cheque and the $153 is a direct credit. To update the cash book balance we would have to add the $153 But that would look like -$422 + $153 = -$269 Then to get the bank statement balance we would have to add back the unpresented cheques So that would be -$269 + $822 = $553 So the $1,091 balance is wrong We would get$1,091 if we did -$269 -$822 But that working doesn’t make any sense So I suspect there’s an error somewhere
You’re welcome! And, yes, most likely If your teacher says different and is able to provide you with a solution that makes sense to you please let me know
@@adapttuition sir I'm thinking like the harder topic to grasp for accounts for instance I have an issue with the balance sheet and trading profit and loss also and manufacturing and you teach great I learnt three topics in one day from you so I wondering if you could keep a marathon and I and my friends would attend as well as your other subscribers I hope thank you ❤
Best accounts teacher on youtube 🐐
I appreciate that very much, Nivel :)
Definitely the best he made score an A🙏
Happy to hear of your success! Remember you are wildly capable!
@@adapttuition good afternoon sir why do we use balance as per bank statement
My teacher said the business can not use the balance as per bank statement because it is not a record of the business
Please explain to me.
Thank you.
Hi, as far as I know there is no such rule but if your teacher insists that you use the balance as per cash book then do so.
To me it doesn’t matter which way it is done. And, in any case in order to update the cash book we must have the bank statement. And, if we have the bank statement we have the balance as per bank statement.
Also, the bank reconciliation statement is not a financial statement governed by any international account standards and as such there is no one right format.
Again, if your teacher insists you do it his/her/their way that’s fine.
It’s good to know how to do it both ways anyway.
Please don't ever stop bringing us these videos. You explanations are the best I've heard from any Accounts teacher I've encountered. Thanks a lot for all you've done!
You’re very kind for saying that, thanks😊
Will definitely try to keep making them 👍🏽
Keep up the good work 💪🏽🧠
What I was lost in for abt a month, you taught me in less than an hour. Thank you. Too funny but too good. Keep it up mate.
Happy to know you were able to understand! Best of luck with your studies 😊
You’re a funny and great teacher 😂🙏🏽❤️🇬🇾
Thank you 😊
Good Lesson. My teacher gives special names to the missing entries from bank statements such as unpresented checks and unposted deposits, rebates , standing order and bank charges. These names help me to find the entries quickly on either statement.
That’s excellent 👍🏽😊
Thanks for sharing 😁
Sir your explanations helped alot in getting me to understand, thank you. Tomorrow is my POA CSEC paper 2, so if i come across bank reconciliation statement i would mostly be able to mash it up
Happy to hear that! Give it your best effort!
Thank you soooo much sir! I'm finally understanding POA...I have approximately 11 days before exam and I'm glad I found your channel. Thanksss!!!!!
Happy to hear that!
Keep up the good work 💪🏽🧠
And best of luck! 👍🏽😊
Why didn't my sir explain like this? It felt like he was speaking French when he did.
Just understood the concept from you, Thank you sir, much grateful!❤
@@aesth.N1 so happy to hear that you understood the content 😊
@@adapttuition Great work sir, please continue posting detailed explanations, would very much appreciate it!❤
Will do!
thanks for reassuring us that were enough! I usually get scared to practice questions because I feel like ill mess up,... but as you mentioned is part of the process! thanks for your amazing videos!🙏🏽☺
Hey :) You're most welcome!
And, yes! Mistakes are a perfectly normal part of the process, don't be afraid of them. We can learn a lot from them if we allow ourselves to :)
Keep up the good work 💪🏾🧠
Ty so much for this Sir. I'm doing exams this year 2022 and this topic is on the list for CXC. My teacher now taught us this format for the first time today. All we knew, was that the bank statement was always the opposite of the cash book where cash book is an asset and when it increases you will debit but in the bank statement you will credit(do the opposite) but never actually taught us the format until today. You explained it so well and I always come to you when I don't understand and you explain it so well. You are also a very funny teacher. Much respect from Trinidad
Hi Kyla 😊
Thanks for your awesome comment ❤️
And much love from a fellow trini 🇹🇹
Happy to hear that you’re finding the videos helpful and understanding the concepts and explanations.
Keep up the good work 💪🏽🧠
You got this 👍🏽😁
Wishing you all the best for exams and beyond! 🥳
@@adapttuition Np!!. And Ty so much!!!😇
👍🏽😊
@@adapttuition Sir, Since I'm doing CXC this year, Would you say CXC is hard?. Cause exams starting for me next week Tuesday and I'm a lil nervous. Not that nervous to say I'm gonna fail my subjects but just nervous as in what if I get too Nervous in the exam that I forget etc. My parents tell me not to be nervous but at the end of the day, they're not the ones writing the exams 😭.
Hi Kyla,
You’re correct, they’re not sitting the exams, you are.
They are also “correct”, being nervous to the point where you blank out isn’t helpful.
The challenge is to find that sweet spot and maintain it where the nervousness motivates you to do work, but you don’t let it overwhelm you.
My opinion is that that is actually one of the more important things you are learning from this whole experience.
How to manage your time, resources and emotions.
Keep fighting the good fight.
You’ll be fine 😊
You deserve a credit for being a great Teacher, have got you so clearly,thank you so much
Thanks very much for your kind words 😊 wishing you all the best!
This last minute revision better come in clutch in the exam, sir if a pass this tmr just know it was all you✊🤞
You got this, Daniel!
Let me know how it goes!
Thank you for being such an excellent teacher and for making poa so easy to grasp.
You played such a key role in the successful results of my exams.
Super happy to hear that you were successful, and I'm also very happy to know that you found my videos helpful.
Where have u been all my life? I thank you for your tutorials in accounts.
Happy to hear that you are liking the videos and finding them helpful!
You have been my accounts lecturer since i started accounting. Thank you! Much love from Kenya
That’s awesome to hear, Judith 😊
You’re most welcome!
It’s my absolute pleasure to be of service 😊
Keep up the good work 💪🏽🧠
I got right my first bank reconciliation qn ☺️, thanks to you sir 🙏. I really dont know why did i take this long to finally find you, but am glad am not late yet 😊.
🙌🏽 that’s excellent! 💪🏽🧠 keep up the good work!
thank you for this video, it really helped me understand bank rec better. I used to watch your videos during high school but I'm back watching your videos in post secondary as well. Thank you!!!!
You are so welcome! Happy to hear that you find them helpful!
Keep up the good work!
I understand this man alot. Thank you for helping me in my forthcoming exams that I have to sit in 25.01.2021.
Account & Control - paper Name
KNEC exam- Kenya National Examination Council. Module 3
Thank you for watching! Happy to hear you found the video helpful 😊. All the best in your exams and for 2021 and beyond
You are the best indeed, you made me understand adjustments of accruals and prepayments, hope I'll understand this too!
Happy to hear that you understood, Sabina 😊
Keep up the good work!
@@adapttuition I already did the KNEC exams was proud to perform the adjustment being sure of it, though I don't work on Bank Reconciliation...But it's my prayer, Will perform the best!!! Still following you to learn much about Cost Accounting and Quantitative Techniques! Can't thank you enough!
Happy to help, Sabina 😊
Finally! I understand this topic. Thanks so much. You are a great teacher. Keep on making great content
Happy to help, Dede 😊
Thanks for the compliment!
Wishing you all the best for exams and beyond 💪🏽🧠
Keep up the good work 👍🏽😊
Appreciate your videos. Failed to grasp the concept of reconciliation before I came across this video. Now it's really easy to go about. I appreciate
Excellent! I had a lot of trouble with this topic in school too as I mentioned in the video. But thankfully I finally understood.
Hope you continue to learn and prosper!
you are the best accounts teacher ever your videos always help me and thank you
Wow, thanks! I really appreciate that :) I am happy to know that you are finding the videos helpful!
Thank God For You Yes
I appreciate that very much :) Blessings to you too!
You're the best, better than my Uni :) Thank youuuuu
Wow, thank you! Keep up the good work!
my exam is tmrw and i didnt know anything...and i learnt within an hour..thank you so much
Hey Ramona! Happy to hear that 😊
Wishing you best of luck in your exam tomorrow!
Hello Sir. I have a poa exam tomorrow, but I've been pondering about this question for the past month. Not knowing whether If a balance in the cash book is credited, do you debit or credit the revised cash book balance. Aswell in vise versa with bank statement and bank rec?
Hi! A balance in the cash book is debit balance unless they specifically state that it’s an overdraft.
Similarly, a bank statement balance is a positive / credit balance unless they specifically say it’s an overdraft.
the cuts at 18:46 and 9:35 keep scaring me! I thought my laptop broke!💀
🤣
have a test on brs in 30 mins this will help a lot thanks man
Good luck! And, let me know how it goes 😊
@A Different Approach Tuition Limited
Went well waiting for the results
@@hishamz4328 Happy to hear it went well :) wishing you all the best! Let me know how it turns out.
OMG keep up the good work, literally set for my end of semester exam
Happy to hear that 😁
Good luck 👍🏽
Let me know how it goes 💪🏽🧠
I always use to add unpresented cheques and subtract the lodgements 😂😭😭.....I have a clear understanding now 💯😎
You can still do that! Watch the other videos in the series. They actually ask for you to do it that way sometimes.
Thank you. Well understood .Was having a hard time grasping
You’re most welcome 😊
I had a hard time with this topic too when I was a student.
Glad you were able to understand it better 👍🏽😁
Keep up the good work 💪🏽🧠
Thank you so much i almost gave up on this topic but you helped in breaking it down
Happy to hear that you are understanding it better now 😊
I had a lot of trouble with this topic and ignored it for years.
Thankfully I was able to finally understand it 😊
And, I had to share the understanding to help others too!
finally I found a good youtube channel
Thanks is very much for those kind words. Much love to you 😊
Your explanations are very good, thank you
Happy to know you’re finding the content helpful 😊keep up the good work
Wishing you all the best 😊
Thank you for the clear explanation. You are a great teacher👌
You’re most welcome 😊
Glad to hear you found the video helpful 😁
Keep up the good work!
Wishing you all the best 😊
Thank you sir for the great lesson.
Hi Asura 😊
You’re very welcome! Thank you for watching and for leaving a great comment!
Keep up the good work 💪🏽🧠
You can do it 👍🏽😁
Thnk u sir.. U saved me😁
You're very welcome :-) So glad that you're finding the videos helpful! Where are you from?
@@adapttuition From Mauritius🇲🇺😄
Sending love from Trinidad & Tobago🇹🇹
Your videos are really helping me, thank you🙌
Happy to hear that! Keep up the good work :)
Chris, you explained this perfectly!!!!
Thanks sooo much ;))
You're very welcome!
Keep up the good work 😊
Fantastic video Sir!! Thank you so much for all that you do! God bless
You are very welcome! Thanks for watching!
Keep up the good work!
Ok but like u actually made me understand bank reconciliation statement😂 sir you're preforming miracles😅
Happy to hear that!
I also used to have a lot of trouble with this topic back in the day.
It’s only when I left secondary school and went to UWI that I finally understood it.
So I really felt compelled to help others understand it too.
Glad to hear you understand it better too now!
Keep up the good work 😊
The balance of the cash book is an overdraft of $765. The bookkeeper has identified an error whereby a customer receipt of $78 was recorded twice. In addition uncleared lodgements of $347 have been identified. What should be the overdraft on the bank statement? See the ans below but I can’t seem to understand why the bank overdraft is 1190. Please explain in detail.
HI! Did you check the other videos in this playlist? I dealt with errors like this in the other videos. Let me know if you find them and if they help you with this issue.
But, consider this: the overdraft is a negative balance so think of the bank balance as -$765.
The error where the receipt was recorded twice is fixed by subtracting $78 from the -$765 thus eliminating the double counting of the receipt.
The uncleared lodgments are increases in the cash book that are not reflected in the bank statement. So to "equate" the information you either add the lodgments to the bank statement balance so that both the cash book and the bank statement have the increases OR you subtract the lodgments from the cash book balance so that neither the cash book nor the bank statement have them.
So the bank statement balance would be arrived at using the following working:
-$765 - $78 - $347 = -$1190
@@adapttuition yes thank you, in the coming days will have a look
👍🏽😊
Mejor profesor de cuentas 😌😌
Muchas gracias 😊
Since I had subscribed the channel. Can I get
1. Ledger preparation
2. Journal entries
3. TRADING, PROFIT, LOSS ACCOUNT with Accruals, prepayment, Outstanding, adjustment, provisions,
Hi! Thanks for subscribing :) I have an entire playlist dedicated to the income statement (the trading and profit and loss account) with adjustments already. Check out my playlist section. The other items are in the works and will be out during the course of the year.
Great Teacher!! good explanation keep it up
Thank you! 😃
Lol I came here for an accounts question in OA, haven't learnt this in POA as yet👀 well guess I killed two birds with one stone. Thank you🇯🇲
You're very welcome :) Glad you found the material helpful!
Keep up the good work on your end!
The names are killing me 😂 but this made the topic easier to grasp for me and for this I thank you 👏👊
Hey @scottmccarthy7091
You're very welcome :)
And, yes, I use the names to inject humor, because when we laugh we're more likely feel good and we remember things better when we are in a good mood.
This topic gave me a lot of trouble and I was only able to figure it out when I went to University.
So when I finally understood it, I told myself I had to share my understanding with others and help them with it as well.
Thankful that my objective is being fulfilled!
Wishing you all the best :D
Thank u so much sir
You videos help us a lot 😊
Kindly keep it up🙏
you're very welcome :-)
Nice to know that you found my video helpful!
Keep up the good work!
i have an exam on monday but this saved me ;)
Happy to hear that you found the content helpful @khushimasood4710
Hope you do well on your test tomorrow.
Let me know how it goes :)
YOU ARE THE GOAT SIR!!!!!
Thanks very much 😄 Glad you're finding the content helpful.
yes sir watching rn!
Excellent! Let me know if you have any questions 😊
one question sir... does the new terminology on this year syllabus for csec?
@@khalilweir6787 hi, what "new" terminology are you referring to exactly?
where did the 13 200 come from @ 14:53
HI, that's the balance carried down in the account.
Add up the items on the debit side (14,000 + 1,000 = 15,000)
Add up the items on the credit side (1,300 + 500 = 1,800)
Then subtract to find the difference (15,000 - 1,800 = 13,200)
Hope that helps.
@@adapttuition thankyou
You’re most welcome 😊
Keep up the good work 💪🏽🧠
very helpful for exams tomorrow🙏🏽
Good luck!!
Thankyou so much , it was really helpful ,loveeeee it
Thanks for watching :) Look out for the final part dropping later this week :)
When are you going to do more POA P2 Solution?
I have those available on my Facebook page. fb.me/adapttuition.com
Or go to my Instagram @adapttuition and go to the highlights. One of them will show you how to get to the solutions on my Facebook page.
just wanted to know how to tell which is a bank lodgment and unpresented cheques
Hi! Bank lodgments are amounts we put into the bank that haven't cleared yet (or amounts we have collected physically but that we haven't deposited in the bank yet).
An unpresented cheque is when we have paid someone with a cheque and they haven't carried it/presented it to their bank yet.
Hope that helps.
i have to thank this man
You’re most welcome 😊. Happy you’re finding the content helpful. Wishing you all the best.
Good teaching,well done
Much appreciated
Wow I really learn your underrated
Thanks very much! Hope you’re well! Keep up the good work 😊
@@adapttuition my account teacher send me this video that's how I found you
Hi! I’ve heard that teachers have been using my videos to teach their classes.
I’m happy that I have provided a resource that ppl are finding useful.
Best wishes to you.
Hello, example you have 200,000 sales then sales return of 50,000 and there was an error of 20,000 returns that was corrected on debtor account but sales figure was not corrected. What do we do on sales
Hi Erick 😊
That’s a great question
Help me a little bit by telling me whether the $20,000 error on sales returns was an overstatement or an understatement.
Or was sales returns supposed to be $20,000?
Good.job.teacher.thank.you.very.much.for.you.chennel.very.very.geat.acounting.class
Much appreciated 😊
Keep up the good work
What is 'balance as per updated c.b' in natural words. Like for eg does it mean 'balance that is similar to c.b'.
?
Hello :-) It means that balance from the updated cash book. It's just a "fancy" way of saying that. Hope that helps.
At 30:02 if it is not a over draft should it still be c/d on the credit side same
If it’s not an overdraft then it would be b/d on the debit side. And before it’s brought down on the debit side, it is c/d on the credit side
I did it your way and got matching figures on my back recon, however my teacher doesn't want it that way, am doing fundamentals of accounting at utech, please can you do it where the bank statements match please. If you know what am talking
@Attebailey16 yeh, if you watch the other videos I think I do it that way. But there’s no one right way to do a bank rec. there’s no reason for a teacher to insist on it a particular way if you can effectively do it correctly. But then again, maybe there’s something on your syllabus that I don’t know about that requires you to do it a specific way? But once you understand the fundamentals you’ll be fine regardless of the method used.
Yessss, just what I had anticipated! Thanks a lot... Also, I am clueless about how you added Wynn's account and transport to the bank recs. Also, what is direct transfer? We've only been taught about credit transfer or giro transfer...
Credit transfer and direct credit transfers are the same thing. A bank giro according to google is an instruction to a bank to credit an amount to someone's account. So essentially it's like a direct deposit.
For Wynn and Transport it's probably because those were items in the Cash Book that were not present in the bank statement.
The theme behind what I was doing was looking for the uncommon items (the items that were present in one place - Cash Book OR Bank Statement - that were NOT present in the other) and "putting them in" the other place, thereby making everything "common". In other words making sure all receipts and payments were in both places (cash book AND bank statement).
Hope that helps.
What about cheques received from the debtor that aren't recorded in the cash book. Do we debit them?
It does not come with the table in the not e from in ohada financial accounting
Check parts 2 & 3 in this playlist
I think you will find what you are looking for there.
Well explained, thank you so much.
You’re very welcome! Happy to hear you’re enjoying and learning from the videos. Keep up the good work 💪🏽🧠
And of course, thanks for watching 👍🏽😊
Best of the best
You're very kind :)
Thanks for your awesome comment!
Wishing you all the best :)
Thank you so much for this 💕it really helped out ❤️💕
Glad it helped! Keep up the good work 💪🏾🧠
thanks you explained it well
Glad you thought so 😊
Thanks for watching!
Just starting to learn accounting and banking and I know absolutely nothing. How did you get the Balance c/d of 14,000? What does balance c/d mean? How did you get the 30,000 figure? And why do you bring the balance b/d down in the first place?
Hi Nicholas :)
Thanks for asking these questions. Let's see if I can answer them.
Ok, so let's go in reverse order because things might make a bit more sense if I do.
The balance b/d (b/d meaning brought down) at the start of the period is the opening balance in the account. Imagine you were trying to keep track of your cash (and let's just assume the cash in your wallet for now). The balance b/d is the amount of money you have in your wallet at the start of your day before any spending takes place.
We put a balance b/d as our starting point to know how much money we started with.
The $30,000 figure is the total of the dollar figures on each side of the account.
On the debit side of the t-account:
$15,000 + $2,000 + $7,000 + $6,000 = $30,000
On the credit side of the t-account:
$2,500 + $1,800 + $10,000 + $1,700 + $14,000 = $30,000
Balance c/d (c/d meaning carried down) means the amount of money you have left in the account at the end of a period, or again in your wallet at the end of the day if you think about it from the perspective of keeping track of your money.
The debit side shows the inflows into the account (your wallet) which includes the opening balance (the amount you have at start) and the credit side shows the outflows (expenditure) including the amount you have left at the end of the day (the balance c/d).
The balance c/d is not an expenditure item but it can sort of help some people to think of it like the amount of money you take out of your wallet at the end of the day when you count it. If that doesn't work for you that's ok.
In terms of a calculation for the balance c/d of $14,000 you can think of it like this:
You started the month with $15,000 in your account
You had the following inflows:
Tom paid you $2,000
Yu-no paid you $7,000, &
Wynn paid you $6,000
For a total of $15,000 in inflows
You had the following outflows:
You paid rent $2,500
You paid electricity $1,800
You paid salaries $10,000
You paid transport $1,700
For a total of $16,000 in outflows
So you started with $15,000 in your account, you received another $15,000 (so now you have $30,000) and you spent a total of spent $16,000
The amount you'd have remaining is $14,000 ($30,000 - $16,000)
And that's the amount of money you have left in your account at the end of the period and which is present in the account at the start of the next period.
I hope that answers your questions. :)
have cxc tmr and mnk nthhh
Well, you have the rest of today to learn something 😊
@@adapttuition yessirr
i dont understand how u got the 13000 od bank rec statement
Hi :) Again... it would be helpful if you put a time stamp like 31:36 so I can click on it and go directly to what it is you are asking about.
To get that figure I started of the bank rec statement with the overdraft balance of ($4,500).
There was one inflow of $8,000 which was added and three outflows which were deducted (12,200, 1,800, & 2,500)
So the working was as follows:
-4,500 + 8,000 - 12,200 - 1,800 - 2,500 = -13,000
Since it is a negative figure this indicates that it is an overdraft
Hope that helps.
Question, if there are two three items with the same figure how would you know which ones to use/ cross out
Only cross out anything that matches between the cash book and bank statement.
So for instance, if there was one $500 item in the cash book and four $500 items in the bank statement (let’s assume all inflows) the we can only cancel one $500 figure in the cash book and bank statement.
The other three in the bank statement will have to be dealt with otherwise.
oh my godd!!!! Thank You So Much!!!!!!!!!!!
Happy to help 😊
Thanks for your lesson
Happy you found it helpful! Thanks for watching 😊 Wishing you all the best!
Please help me with the point form
Hello 😊
I’m sorry but I don’t understand what you’re asking 🙁
What “point form” are you referring to?
Chris that 13,200 in the bank reconciliation can we not write it as the balance c\d, l dont get why we have to wirite it as balance as per updated cash book
Hi :) That's a good question. The bank reconciliation statement is not an account like the cash book or any other t-account in which balances go down from one period to the next. The bank rec is a statement, a calculation, which shows that we know why the balance in the cash book (balance as per cash book) and the balance in the bank statement (balance as per bank statement) don't agree.
As such, since it's not an account which carries information from one period to another and it is simply a statement which reconciles two balances at a point in time it wouldn't be appropriate to use the phrase "balance c/d" as that implies that the balance is being carried down (in that statement) to another period which it is not.
The statement "only exists for that point in time" and as such it has neither an opening nor a closing balance.
@@adapttuition well understood. Thank you
Happy to hear that!
Thankfully I found you :)
Happy to hear that you’re finding the content helpful 😊
What level of accounts are you studying?
hi how did u get the 13200 in the cash book?
Hi :) Please put a time stamp like 14:51 so I can click on it and go to the part of the video that you are asking about.
This is especially helpful when it's a long video like this. Thanks :)
The $13,200 was obtained by balancing off the account which I mention at 14:53.
To balance of an account:
- add up the items on the debit side
- add up the items on the credit side
- subtract (DR total - CR total)
- if you get a positive figure put it on the credit side and label it "balance c/d"
- if you get a negative figure put it on the debit side and label it "balance c/d"
Hope that helps :)
is a bank statement the same thing as a statement of account?
Hi Nicardo, it can be, yes.
But a statement of account is a statement detailing the details of an account, whether it’s the bank account or some other account.
You can give a debtor a statement of his/her account.
@@adapttuition
Does the same logics apply to a statement of account with the bank reconciliation where credit is a deposit and debit is a withdrawal?
Thanks so much for this video!!!
Glad it was helpful! :)
sir u have lessons ?
Hi, yes I do. If you want to find out more info email me chris@adapttuition.com or dm me on Instagram @adapttuition
Hey sir i didnt quite get how u got $7000 at 22:47
Hi 😊
Add up the items on the debit side ($3,500 + $9,000 = $12,500)
Add up the items on the credit side ($5,000 + $500 = $5,500)
Then subtract ($12,500 - $5,500 = $7,000)
Ohhhh thank you sm ive been sitting here lost tbh 🤣
Happy to help!
I’ve gotten so many questions on how to balance off t-accounts over the years.
I really need to do a tutorial on that
But hopefully you understand a bit better now.
@@adapttuition yes sir i tend to forget how to balance
No worries
We all forget something at some point 😅
If you have any more questions please feel free to ask
Keep up the good work!
sir, is it that you only start the bank recon statement with balance as per bank statement when there's an over draft?
Hi, no, you can start the bank rec with whichever balance you prefer whether or not it’s an overdraft.
I just prefer to start my bank rec with the bank statement balance generally
okay thank you :)
Sure thing
What would be a night deposit?
That might fall under bank lodgments
An increase that we have on the cash book but which is not yet recorded on the bank statement
I actually figured it out lastnight. Thank you
Excellent! Glad to hear that.
What was it that was giving trouble initially that you figured out?
The issues was how to deal with the bank overdraft figure on the bank reconciliation
Ah, ok cool cool
Well I’m glad you figured it out
This topic was very hard for me when I was in form 5 but thankfully later on I was able to understand it a lot more.
Ok question so if u start in the bank rec with the balance per bank statement basically it would be the opposite of starting with the balance as per cash book (adding unpresented cheques and lessing back lodgements)?
That’s correct 👍🏽😊
recommended Text ?
Hi! 🤔 I rarely use any texts as I find most of them a bit difficult to read. I create my own material.
But if I had to recommend one it would be the Frank Wood and Sheila Robinson book - principles of accounts for the Caribbean (I think that’s the name)
I have a question sir, 38:08 - 53:48, how would I know if I should put the information on the debit or credit side when done like that?
I might get a little confused as to which side to put it😅
Hi, if you watch the video I explain what goes where and why.
It is a lot of information but again if you endeavor to understand what each item means instead of trying to memorize what to do that will help.
Ok I get it. It’s just that it’s a little confusing now but I just have to keep practicing 😌
I totally hear yah. If you listen to to my little talk at the start of the video I definitely did not understand this topic for all of form 5 & 6. It’s only when I went to UWI i found the textbook explained it very well and I was able to understand it.
Don’t worry, you got this!
I believe in you 😊
@@adapttuition 🙌🏽☺️
Exams is tomorrow and this was sooo useful🥺🫶🏽
Happy to hear that Nique 😊
Best of luck to you 💪🏽🧠
Sir,I know the bank statements acts like a liability but would it work if you just credit all the debit balances from the cash book and vice versa
Hi Mikai,
Are you asking if you put all the increases from the cash book in the bank rec statement if that would be a correct way to do a bank reconciliation statement?
If so, then I would have to answer, no.
The bank statement will have some items that the cash book has and vice versa.
So if you just dump all the debits from the cash book in the bank rec then you'd be including items that are already in the bank statement.
The point of the bank rec is to indicate the differences between the cash book and the bank statement.
Hope that helps.
Do you do cape accounting videos?
I would like to :) I have a backlog of CSEC topics to clear off but I definitely want to tackle some CAPE topics.
can i use highlighters in my poa exam sir
no
What the person above said.
Can I get some help with updating a cash book and a bank reconciliation?
Hi, if you watch this video and the others on this playlist you should be able to at least attempt the question.
Watch the videos, try your question and then let me know how it goes.
Your videos are very good though. Very clear
I actually did attempt the question but the issue is that the bank balance is an overdraft and based on what the two remaining items say, when I input them I am not coming back to amount updated on the cash book.
Happy to hear you think so 😊
Keep up the good work!
You can do it 💪🏽🧠
I deal with overdrafts in the other videos. Watch them and see how I treat with them and then try again.
Hello people does anyone know if he gives private tutoring...... or a good tutor in Trinidad? Thanks
I do private tutoring. My classes are Mondays and Wednesdays from 3:30-5:30pm. Email me if you want more info chris@adapttuition.com
@@adapttuition thanks I will email you , let me finish cooking
And which balances do we have to consider? The b/d or c/d for both?
The b/d balances
For some reason I'm unable to reconcile the bank statement and cash book
@@ethancolaco14 In one of the questions in this video?
@@adapttuition No, generally
@@ethancolaco14 Like i said at the start of the video, in Form 4 & 5 I had no idea how to do bank recs. I'm sure if you watch this video and apply the principles you'll be fine. I'm supposed to be doing a follow up to this video this week (if I get time). Look of for that one and see if it helps. It deals with NSF (dishonored cheques) and errors made in the cash book & bank statement.
sir you are amazing!
Thanks a lot! That's very kind of you to say :) Glad to know you are finding the videos helpful!
sir my teacher said we should always start with updated cash book balance and if its credit,add all the debit entry in bank statement and less credit.but when i do that im not arriving at the bank statement balance like the one in #2 i got 21500 when i did that method but when i add all the increase less decrease i got back the original bank statement balance.so what should i do
nd would direct debt(money paid by bank on behalf firm to creditors)be an increase or decrease.
also is proposed dividend owing subtracted from the dividend it self or is it just added as another appropriation
this is the comment sir
There is no one correct way to do the bank reconciliation statement.
You can start with whichever balance you want.
However, if the question asks you to start with a particular one, then you need to do so.
Starting with the updated cash book balance in my opinion is the harder, less intuitive way to do a bank rec.
But it can be done.
Learning why we do a bank rec and how we go about it is more important than memorizing procedures.
But sometimes when we don't understand we need to memorize and apply.
Your teacher's method seems to very a bit inefficient with adding/deducting ALL the items, but it is a valid method.
If it doesn't work for you, then don't use it.
Your teacher isn't marking your CSEC paper.
Your videos are brilliant but there is one question I cant get my head round. Would really appreciate help from anyone.
Priya is preparing her bank rec. The bank balance in her general ledger is £422 overdrawn. The only item that need to be dealt with are:
- A payment to a supplier of £822 that has not yet appeared on the bank statement.
- Interest received of £153 that was credited to the bank, but not yet recorded/
what is the closing balance on Priyas account.
Answer = £1,091 overdrawn.
Hi! Ok, so her cash book balance is $422 (Overdraft).
The $822 is an unpresented cheque and the $153 is a direct credit.
To update the cash book balance we would have to add the $153
But that would look like -$422 + $153 = -$269
Then to get the bank statement balance we would have to add back the unpresented cheques
So that would be -$269 + $822 = $553
So the $1,091 balance is wrong
We would get$1,091 if we did
-$269 -$822
But that working doesn’t make any sense
So I suspect there’s an error somewhere
@@adapttuition oh thank you very much. I spent ages on this question so the textbook possibly made an error.
You’re welcome!
And, yes, most likely
If your teacher says different and is able to provide you with a solution that makes sense to you please let me know
Sir any marathon before the exam on May 9th?
Hi 😊 sounds like an interesting idea. What would you suggest for the marathon?
@@adapttuition sir I'm thinking like the harder topic to grasp for accounts for instance I have an issue with the balance sheet and trading profit and loss also and manufacturing and you teach great I learnt three topics in one day from you so I wondering if you could keep a marathon and I and my friends would attend as well as your other subscribers I hope thank you ❤
Hi Tishauna 😊
I actually have videos on all of those topics that you mentioned.
Have you checked them out?
Here’s the balance sheet playlist
Balance Sheets (2021)
ua-cam.com/play/PL9u_QIMhEllv09b3EnxcupBc8WjjFvuGb.html
Here’s the income statement playlist
Income statement adjustments
ua-cam.com/play/PL9u_QIMhEllu1e3xIC7yHMnSv83tIeFYE.html
Last minute cramming to make sure i at least attempt to know this 😭😂
Best of luck!
can you please do accounts past papers plssss
Hi 😊 I have about 70 videos with past paper questions. They’re pretty easy to find. Let me know if you find them