@09:20 bank balance figure confusing......date it says is 31 lets say c/d is on debit side, this gives wrong answer to question but if we put c/d on credit side (to get correct answer) than b/d will be on debit side than why it says at 31st on debit side. If I follow your logic as it represent bank statement balance than that logic has to be true for opening balance as well but it isn't.... confusing
I certainly understand the confusion and you aren't alone in the way of thinking about how you approach it. The reason we assume this is a debit balance is down to the heading of the table. It states "balance as at" means what we have in the bank account on that day. If it is a debit balance then the previous period should have a credit balance as a carried-down figure which we used in the calculation. If the table suggested a different heading, then we need to cater for the query as required. Hope this makes sense.
@@AATbyMo This also confuses the life out of me.... so the actual bank has a debit balance owed to the bank) so the accounts bank is therefore a negative credit?
@@rebekahmontague3734 I'm not sure what you mean by this. Usually when we hear bank balances in accounting, we need to consider it to be from the business's side therefore if the balance is debit means they have money in the account and vice versa for the credit balance which is an overdraft. In this question when they have mentioned balances are end balances at each year's end. 31st March 2016 credit balances so the cashbook will start with a credit balance there. On 31st March 2017 the balance as per the information is 1568 debit. In order to have this opening balance on the debit side, the closing balance of the previous period must have the same amount on the credit side. I hope this makes sense.
Thank you so much for this. I sit my FAPR exam in a week and this has really helped 😊
@09:20 bank balance figure confusing......date it says is 31 lets say c/d is on debit side, this gives wrong answer to question but if we put c/d on credit side (to get correct answer) than b/d will be on debit side than why it says at 31st on debit side. If I follow your logic as it represent bank statement balance than that logic has to be true for opening balance as well but it isn't.... confusing
I certainly understand the confusion and you aren't alone in the way of thinking about how you approach it. The reason we assume this is a debit balance is down to the heading of the table. It states "balance as at" means what we have in the bank account on that day. If it is a debit balance then the previous period should have a credit balance as a carried-down figure which we used in the calculation. If the table suggested a different heading, then we need to cater for the query as required. Hope this makes sense.
@@AATbyMo This also confuses the life out of me.... so the actual bank has a debit balance owed to the bank) so the accounts bank is therefore a negative credit?
@@rebekahmontague3734 I'm not sure what you mean by this. Usually when we hear bank balances in accounting, we need to consider it to be from the business's side therefore if the balance is debit means they have money in the account and vice versa for the credit balance which is an overdraft. In this question when they have mentioned balances are end balances at each year's end. 31st March 2016 credit balances so the cashbook will start with a credit balance there. On 31st March 2017 the balance as per the information is 1568 debit. In order to have this opening balance on the debit side, the closing balance of the previous period must have the same amount on the credit side. I hope this makes sense.
Hello sir I done my exam yesterday and I passed my exam thank you for the video
Well done. Glad my video helped. All the best with the rest of the qualification
@@AATbyMo thanks sir again