Prepaid Expense – Principles of Accounts (POA)
Prepaid expense is an expense you had paid for in advance. Think of your EZ link card. You top up your EZ link card with $20. At this moment, did you use any of the expense? No, the amount of money is in the card and you had not use any of the value for […]
Expense Payable
What is expense Payable? No! Expense Payables are not expenses! There! i said it and let this sink into your head. They are current liabilities. Allow me to explain. Expenses Payable are Current Liabilities Expense Payable is a liability that you owe and had not yet pay. Think of the mobile phone bill of $100 […]
POA tuition – how can it be made better for the student?
POA tuition is one of the strenuous teaching sessions to be conducted based on personal opinion. The subject matter is dry. POA tuition is not like any other sessions where there are nice pictorial images to view. Looking at accounts will never interest anyone into wanting to take a second look at it. So, how […]
Depreciation of assets in Principles of Accounts (POA)
Definition and reasons for depreciation Depreciation of assets is the loss in value of the assets. The reasons for it is due to Usage Wear and Tear Obsolescence Legal Limits Usage refers to depleting the resource that is available in the asset. By depleting the resource, the asset will have more depreciation. Think of […]
What is Allowance for impairment loss on Trade Receivables?
Allowance for impairment loss on Trade Receivable is a contra asset account. A contra asset account is the ‘Opposite’ of an asset account. Do not take it as a liability. Rather, take it as a negative in the asset section of the balance sheet. Think of allowance for impairment loss on Trade receivable as a […]
Learning Principles of Accounts (POA) and scoring As
How can you do well in Principles of Accounts (POA)? In principles of accounts (POA), there are a few methods to learning it. Some methods rely on the massive brain power that one can have. Some methods rely on the hard way of doing things but yield best results. Others involve trickery to achieve some […]
Double entry for Assets, Liabilities, Income, Capital and Expense
The main basic of double entry in accounting must be well understood. I had been emphasizing too many a times that DEBIT is not always adding into accounts and CREDIT is not always deducting from accounts! Debit and Credit are just ‘Left and Right’ of any accounts. Whether it represents an addition or deduction from […]
Prudence concept and what it actually mean
Concept of Prudence In principles of accounts POA, we often mentioned about prudence concept. The definition states that the business is not to overstate assets or understate liability. Possible losses are to be accounted for yet, possible profits are not to be accounted. What does prudence concept meant? Simply put, it is not only a […]
Going concern concept applied to Hyflux Singapore case probe
“CAD, MAS and Acra launch joint probe into Hyflux and its directors” Going concern concept states that the business is assumed to be on going forever. Many a times, students are not sure how relevant such concept are applied to real life. In this case probe, KPMG (The company which checked and verified the accounts […]