TRANSCRIPT

00:00:01 Hi. My name is Caleb. Welcome, and congratulations on getting your hands on the master principles of accounts study guide. This has been something that many students have been waiting for. And now we just launched this, and I’m so happy that you have it in your hands.

Introduction

00:00:30 Now in this session, I’m just going to quickly help you maximize this study guide to do well for your studies. Before I start, let me quickly introduce myself. My name is Caleb. I’m one of the coauthors of this book with Teacher Joy. This is one of the reasons why we wrote this book.

Success Stories

00:00:57 This just came in, just about the time when we were sending this to the printer. And now we should talk about the book here. This is one of the parents who used the book to teach her own daughter. Started in Sec 3.
00:01:06 So this is the previous edition of the book. She has done quite well. The daughter received an award for a higher score in POE.
00:01:17 So at that time when she was writing this, I think I have the live post here. So I’m just going to quickly show you guys before coming back. So this is the group. That’s something like 9,000 ARR members, parents in this group.
00:01:24 And then you see that, fairly recent here.
00:01:27 And then we had some comments going. All comments.
00:01:33 So the parent was very happy and just sharing that the daughter topped the class, topped the cohort, I think. Yeah. So this is the reason why we wrote the book. This is not the first book.
00:01:55 This is probably the fourth edition, actually. So over the last sixteen years, we’ve sold at least 14,000 copies. Reason why there are some years that’s less is because we took time to update the syllabus and all that.
00:02:10 And this is where we want to serve you guys. We understand your pain as new POA students or if you’re struggling, and we actually use a lot of the things we teach in class in real life.
00:02:28 Some of you might have seen our interviews in Yahoo Finance or read about it in Seelig, a personal finance platform, teaching you how to save money and all these things. There are more.
00:02:56 But I’m just giving you an idea of how we as accounting teachers used the very same knowledge you learn in school to make some milestones in life.
00:03:00 So this is one of my classes when I was maybe 28 years old. So I’ve been teaching for a while. This is the more recent one. I think probably about just before COVID.
00:03:21 Our team that does the whole POA experience.
00:03:23 This is with myself and Teacher Joy. So we write publications, and these are two of my ex-students, one of them topped the cohort.
00:03:39 And some of our tutors, most of them are scholars and holding high positions in MNCs. They help us teach students who don’t meet our schedule.
00:03:50 Or a format for the kind of help you need. Now let’s get real quick to how to use the book to quickly help you.

Book Structure and Study Tips

00:04:02 I’ve extracted the book and digitized it here for you. This is the digital version of my book, only available from my printer. So I’m going to start here because this is a page many students will miss.
00:04:17 The book is structured so that anything important is in a gray box. And especially important ones, I’ll put an exclamation mark. Now, because it’s black and white, some students may mistake them.
00:04:41 These are the very same points that we see across all students who are struggling. Usually, if you struggle with certain accounts, we sum up all this wisdom and put them in point form. So this is why the effort follows what we call the Pareto principle.
00:04:50 I’m going to write this down. The Pareto principle states that 20% of the effort yields 80% of the results.
00:05:06 Meaning to say, everything is important. Some are more important than others. For example, if you look at the basics, if you look at chapters one to four, this is just an example.
00:05:36 If you are new to POA and you’re taking your WA and your teacher covers chapters one to four, some of you will say, let’s say, I have two hours. I just spend half an hour on each topic. That’s not the right thing to do.
00:05:48 So if you know those things that are important, that drive the biggest results. You will spend a disproportionate amount of time on chapters three and four. To what extent?
00:05:55 If you only have two hours, I will say you spend 1.5 hours for last-minute revision. Of course, you should have been doing at this ratio for much longer.
00:06:08 And then you spend thirty minutes on chapters one and two. But how would you know unless you are guided? So this is what we call a study guide. It guides you to help you focus on chapters that you need to spend a lot more time on, which will make the most difference.
00:06:30 Of course, if you watch this video and you’ve been suffering since the hard topics from chapter six onwards, you’ll know what I’m talking about. If you are Sec 3 and you just started POA, no.
00:06:36 Doesn’t matter. But just make a mental note. When you reach chapters three and four, you’ll realize things start to get more interesting, and then you really need to put in a bit more effort in these chapters.
00:06:50 So that’s how to use the book from here, the study tips. Now you also have a reminder, or how I mentioned to you just now, how we use real-life examples to connect.

Real-life Applications

00:07:09 Not just to teach students so that they can make it relevant to their real life. But when you learn and connect that which makes sense to you, that which is logical, that which happens in daily life, you tend to remember as a reflex.
00:07:29 Muscle with memory rather than trying to memorize. So one of the things I like to highlight in class is if I teach you how to wear your clothes in the correct sequence, you can apply it to wearing any kind of clothes, sportswear or winter wear.
00:07:48 You start wearing from inside out, for example. And then you wear your socks before your shoes and you carry your bag before you go.
00:08:00 Now, if you memorize POA, for example, and you’re not connecting with real life, then it becomes very laborious. It’s as if I have to train you to look at how to wear different types of clothes where the steps are very similar each time.
00:08:15 So the ability for you to connect to real life examples is important. It may feel like you need some effort while studying.
00:08:26 But that’s how you study by connecting real life so that things make sense to you. Then in that case, you don’t memorize formats and all that when it doesn’t make sense.

Using the Study Guide

00:08:35 Of course, there are the online resources that come with you being able to access this video. I shall not take too long, but I’d like to give you a tour of some of the key ones. So let’s take a look at some of the key ones that you have.
00:08:45 Your walkthrough, which is this one, and your revision checklist. Different syllabi for your G2 or G3 and O Level.
00:08:58 You have different checklists which you can pick up. Chapter quizzes. Chapter quizzes are very nicely mocked up here.
00:09:07 But I just want to show you how it looks. So when you start clicking on chapter quizzes, you will come to this page. And just take any quiz.
00:09:10 So let’s say I click on, I don’t know, maybe I click on income or cost of sales/expenses. Take the quiz, and this will appear. Just start taking the quiz, and you can see the questions, the answers, as well as the explanation after you complete them.
00:09:39 Now, in case you didn’t do very well, at least you know which chapters you can focus on. Rather than keep reading a book and not doing any exercises.

Digital Resources and Tools

00:09:48 Now we also continue with what other things we have here. You have, of course, your Q&A forum. So how does your Q&A forum look?
00:10:05 So this is the platform that you can access. We call it the Heartbeat. This platform is literally called Heartbeat. So your Q&A is here.
00:10:14 You can find, you can ask questions. You can ask questions. And then after that, of course, you can see when you onboard, you can see introductions.
00:10:28 So do me a favor. Keep it engaging. Humor me. Answer the questions with enthusiasm when you start onboarding.
00:10:36 They ask you for a profile photo. You can put fun ones. And after that, you can, you can…
00:10:44 Just write something fun that you want people to know. Then you also have a pure AI personal tutor.
00:10:51 We are in the midst of completing the testing. But these are early stages, so we are giving only trials at the moment. So you can use it to prepare for your exams. For study guide purchases, this is going to be a free trial.
00:11:09 For enrolled students, you’re going to have the full version, as long as you are enrolled with us, until your exams are over.
00:11:19 And then, of course, your exam resources. So the exam resources are like your Ten Year Series. The page looks like this.
00:11:26 So for your Ten Year Series solutions, you can select the year and papers starting from literally ten years ago, 2015. Click, and you can reach the page, and then you go through the answers.
00:11:49 Now we don’t provide the questions because it’s a copyright issue. We cannot duplicate MOE or SEAB papers. So just let you know, the answers are original, brutally critiqued by Singapore students on Reddit.
00:12:03 So, it controlled quite a lot of fire, a lot of edits. So my team and I do those edits.
00:12:15 So all these are very helpful for your revision. So this is how you can maximize the book. Now we’ll jump forward a bit and see what else there is.
00:12:26 Now, in certain places, you also find guides or courses available for you to sign up. So things like your double entry basics.
00:12:31 You might want to. Let’s say you go to chapter four. Let me see how far we are going to be on chapter four.
00:12:39 So let’s say you do chapter four, and then this is double entry recording. Right?
00:12:44 And then you struggle. Then, but on the page, you can see the course we offer; you can read up a bit.
00:12:54 And if it’s interesting for you, you can, I want to say click, but just type this out? Or sometimes you can find the offer appearing in your dashboard.
00:13:01 If you happen to be online and using the dashboard to navigate all your resources, you can click on the basics. Now, of course, all your quizzes can be found here.
00:13:12 Once you scan this, you’ll go to the quizzes page. Then, you scan at the chapter you are weak at. Right?
00:13:20 It will give us an idea how many students really need help. Then, we can provide additional resources to you guys.
00:13:28 Now what I missed just now is this, right in the front of the page: how to perform like a top 1% of POA students. Now because it’s in a book and you can read it.
00:13:40 So I thought to spend some time to just let you know that these tips are not written by somebody who only writes books. Teacher Joy and I have a combined experience of over 40 years teaching this subject.
00:13:59 Totaling, personally, teaching over 2,000 students. Probably more, because Teacher Joy teaches in MOE schools.
00:14:13 So, I personally have taught over a thousand students. So, this is not just sales talk. This is real. It is really a road map.
00:14:23 If you look at why POA matters. Again, because it’s important, we put it in a box. But sometimes when we write certain things down, maybe it’s a cartoon or maybe it looks very simple.
00:14:39 But you need to appreciate the simplicity of how things can be made so clear. But it is simple but requires work.
00:14:52 So you need to run through this. That’ll help you. So, actually, the very important parts are also highlighted for you in bold.
00:14:57 You don’t have to imagine, “Oh, maybe this is important, maybe that is important.” You can put your time on the 20% of effort.
00:15:08 Then use it to get 80% of the results. So the main thing for POA is to be consistent.
00:15:19 Why? Because, unlike, say, a very factual thing that you can memorize and try to make sense of, in POA, if the foundation is weak and you build things on top of it, it will collapse.
00:15:37 Maybe a bit like if an earthquake happens very far away and your building is made of very poor quality material, it just collapses.
00:15:46 Not going to reference what I’m talking about for recent events. But, just so you know, it’s the same for POA.
00:15:54 So if your basics, like your double entry basics, are weak, it will compound, and you’ll get more and more confused as you move on to chapter six all the way until chapter 15, fraction of errors.
00:16:07 So make sure you build your foundation properly, and your grades will soar. If your foundation is not good, you need to unlearn the wrong way and relearn it.
00:16:15 So if you have a good POA teacher in Sec 3 that built a strong foundation for you, you should be quite okay.
00:16:28 The rest of it, I think you can read on your own. There are some that relate to actual exam performance.
00:16:39 If you are preparing for exams, ready to take note of all these: exam date, preparation, the actual execution, especially keeping to time, and what happens if your statement of financial position doesn’t balance.
00:16:53 So this is very, very useful. I’ll leave you to read the rest of it.
00:16:56 But let’s move on. Again, every time there is something important, you see a link. You can type out the link. It’ll bring you somewhere.
00:17:03 Then you can go and test and have a good understanding of what the additional tools are that you can use.

Digital Resources and Tools

00:17:13 Now I’m going to address some of the other things that we provide, because many of the things we offer are just not available anywhere.
00:17:28 So for example, one of the things we see students struggle with is when the financial year ends not on December 31st. Students don’t know how to count it, so we created a special calculator here.
00:17:45 It’s available in the dashboard, so you can take a look and then you can use it. I even did a tutorial on how to use it and count the months.
00:18:00 But the financial calculator works like this. So this is the kind of length we go to use technology to help you do really, really well.
00:18:09 So you can calculate the end date. You can also work backwards. So just now, we were looking at May 31st, 2026, in a question.
00:18:17 May 31st, 2026. Then one month before. One year before.
00:18:24 Then the period starts on June 1st, 2025. And so, that’s the length we will go to help you process POA in a more efficient way.
00:18:39 But please do not think you can, because you cannot bring a calculator in. So please watch the tutorial, download the handout, and follow the video lesson.
00:18:55 These are all the free lessons available that come with your bonus. To have a taste of how our classes look.
00:19:09 Now, there we have this next thing that I want to cover. Now from the series, from Cost of Sales onwards, it becomes more about understanding the logic flow.
00:19:18 So usually when we start the chapter, I just try to tell some stories. I try to tell some stories. Like, the example might be a Singtel bill.
00:19:31 You read the story, follow it, and see how these things work, because these are real-life things. You see how to do the journal entries and the financial statements from there and see whether it makes sense.
00:19:50 Then, if things don’t make sense, you can take a picture and upload into our forum and ask. I mean, the forum is not for you to ask anything. I only address questions from the study guide.

The Leap Framework

00:19:59 Now I’m going to share a recent story. I have a new student who came in and had this situation. Not unique.
00:20:08 We’ve heard of this many times. They had a very good teacher in Sec 3, who was available for Sec 3 exams. Lessons were enjoyable. Real-life examples were used.
00:20:17 So if you’re in that category, congratulations. You don’t need me. Happy to just share if you are willing to indulge.
00:20:27 Then in Sec 4, the teacher changed because the school teacher retired. Then this new teacher didn’t use the same way to teach POA, resulting in a lot of confusion.
00:20:38 It isn’t fun anymore. Then they gave us a phone call, and then we start to cover this.
00:20:46 Now the LEAP framework that we teach focuses on teaching the new way. So I’m going to give you an understanding of how the whole thing works.
00:20:58 So LEAP basically means: Logic (L), Equations (E). A is Application (writing all the journal entries, ledger, financial statement formats), and then Patterns (P).
00:21:22 There’s a certain pattern once you see many topics. In POA, you can use the LEAP framework.
00:21:33 So, once you understand these four elements, you really will not want to go back to the old way of revising.

Old vs. New Study Methods

00:21:39 So let’s go through the old way and the new way. Now if your school teacher is doing a good job, and you realize that not every school is doing the same.
00:21:47 Just bear with me. I just want you also to appreciate that your teacher is very good. So please make sure you appreciate them.
00:21:58 Plus, some of you will understand the pain I’m going to describe soon. I call the memorizing method the old way of understanding POA. POA is not like before.
00:22:09 I’ve taught for very long, and the subject has been around for a very, very long time. I have papers going back to the nineteen seventies.
00:22:19 I collect a lot of papers. So the 1970s are the Ten Year Series. Go to old bookshops and buy.
00:22:27 Now the old way is to memorize textbooks. Open textbook, read notes, pray. It is based on memory.
00:22:43 Then, you want to… Do entertainment. Watch TikTok videos.
00:22:54 Then as you feel inspired, you think you understand. Then you’re very happy. So sometimes you think, okay, “Then I’m ready to go and find the tips and things to look out for.”
00:23:24 Only watch. Only think you understand. Don’t write anything.
00:23:31 Even in my class, when students are not used to it. We have this kind of thing, like what you’re seeing here; I’m using this to mark.
00:23:42 If there’s another person in the same place, there’s the ability to check and screen. My student uses this room to go and do their work.
00:23:50 So I can see some students are very diligent. Everything I say and do on my whiteboard, you need to do on your own whiteboard. So I can see them doing that live.
00:24:05 But some students don’t. These are what we call the notes readers. “Caleb, I studied already.” This is the very classy one. They tell me as if I’ll feel so happy.
00:24:20 “Caleb, I read your book.” Before the end, they say, “I’m very confident I understand your book.”
00:24:26 Then I say, “Okay, let’s see how the results turn out.” Usually, for this student, they won’t do well.
00:24:39 Not that I don’t think they’ll do well, I know that they won’t do very well because they never put ink on paper. The moment you put ink on paper, you will know exactly what gap you have.
00:24:50 Especially true for theory. “I’m going to memorize theory.” “Memorize O Level.” Right?
00:24:58 So theory is a special important note. Not that I don’t think I memorize… I don’t think I mentioned it in the book.
00:25:09 But for theory, the trigger is to read the chapter, then ask your friend to do Q&A, because sometimes there are words that you don’t know how to say.
00:25:20 Right? It’s very shocking because those could be simple words. Those were simple words that you memorized. You know how to say.
00:25:29 So the best way to do it is to actually write it out. But the second best way is to do Q&A. Your friend asks you, you answer.
00:25:40 You don’t have to have a POA friend. You can just have a list of Q&A. And after that, ask your parents or sibling, or your friends during recess.
00:25:51 Go talk to your dog or something. Ask them to ask you, then you reply.
00:25:59 Memorizing it and regurgitation is not new to the subject. Some other subjects also can’t be done like that, but some students still do it.
00:26:10 Then they get D, not for distinction, but D for dismal results. Then after that, they compare, and it appears so confusing, so dry, so many things to memorize.
00:26:24 But if you learn it properly, get the new way. Instead of memorizing formats, the formats will make sense to you.
00:26:33 There are just four steps. Number one: Make sense of what the question says. Connect to real life.
00:26:41 And then learn to think about it in chronological order: What happens first? What happens second? What happens third? What happens fourth?
00:26:52 Next, build an equation around the logic. You build an equation around the logic. So you just need to make sure what you think is in chronological order.
00:27:02 Write each figure in the exact chronological order. Next, you apply.
00:27:10 Apply the equation to the journal entries and financial statement extracts. Just hang on a bit because I’m going to show you with a real question.

Practical Examples

00:27:20 And the last one, you recognize patterns. It’s like, “Hey, I see this pattern over and over again.”
00:27:29 Whether it’s in capital and joint account, in retained earnings, in income and expense, or AAA variables. Once you see it over and over again, there are certain figures in the equation that always go to the same place.
00:27:48 So this is again like wearing clothes. Once you recognize certain patterns, you always start wearing from inside out. So no matter what kind of clothes are given to you, you start from that principle.
00:28:04 This is the memorizing one, trying to regurgitate. Actually, they’re the same steps. But you go ahead and memorize every chapter.
00:28:16 So what? 16 chapters, you multiply by four steps. People remember one flow: the LEAP framework.
00:28:25 You remember 16 times four. You can’t even do the math because… I tell you, use a calculator for POA? That’s like nonsense.
00:28:38 So logic rules. We start with logic. Then you go on with the rest of the steps.
00:28:47 Now let me give you an example using this chapter on capital. Now for capital, you always start with logic.
00:28:58 Look at the question. Like, For You Trading had a balance of 10,000 at the start. So this capital…
00:29:09 Now if you haven’t done this chapter yet, it’s fine. Just listen through because it’s the same approach for every chapter.
00:29:21 You contributed your personal laptop, 3,000, and then you withdrew $500 of inventory for personal use. Then you withdrew something again, and the profit for the year is 8,001.
00:29:45 Now the question could be asking you to do journal entries. For this chapter, they’d like to ask you to do the ledger. The capital ledger.
00:29:57 Now the important thing is this: when this kind of question is asked and they ask you to draw a ledger. Right? Students, straight away, the first thing they write is what they know.
00:30:08 The year and the date. Then they follow this: June 6th, October 10th. Then they write one by one. Then they say, “This one, this one, how do I write this journal entry?”
00:30:21 So they try to figure it out later. So what happens is they try to figure out what’s missing as they do the question.
00:30:29 Now this will create a lot of opportunities for mistakes. The way we do it, the way our students do it, the way I teach my students to do it, is to always label each figure into an equation.
00:30:43 For this chapter, we use this equation called HBUL: what you have at the start plus what you buy minus what you use equals to what is left.
00:30:52 So don’t have to worry. I’m not going to keep it from you. What you have at the start plus what you buy minus what you use is what is left.
00:31:07 Now, this is a bit manual, and you should be executing this quite fast by the time that time is very near, maybe around 30 seconds. For us, we can do it in even less time.
00:31:27 I’m going to show you an example later. So Step 2: construct the equation in chronological order. So for example, H is what you have at the start. Start is on April 1st. That’s H.
00:31:45 So the equation we built is here: HBUL is here. Now you have 10,000 at the start.
00:31:57 You contributed 3,000 for capital. Total capital at this point is 13,000. Now you add again. Why? Because if a business makes a profit, the profit goes to the owner.
00:32:15 So it increases your capital, so you plus it. If you withdrew, and this is withdrawn twice, the total withdrawn from the business is recorded down as an equation.
00:32:28 Chronological order. Except that if you understand HPUL, you calculate the ‘Use’ together at year end, and then I’m going to show you what I mean later.
00:32:41 And then you’re going to calculate what’s left: 10,900. So I want you to see that there is a horizontal recording of things that happen.
00:32:52 Conceptually, if you have done this in school, you will know that your teacher will keep mentioning that your drawings are the total drawings transferred to the capital at the end of the year.
00:33:08 So the 500 and 700 are not recorded as it happens. It’s the total amount that will be transferred to the capital account at the end of the year. So I’m writing it out in text.
00:33:25 First, I want to show you magic. Can I have pie? Use that.
00:33:29 Now I have all the figures I need to get full marks. And I say that this way because most of you think that your formats and dates, your particulars, are going to save you.
00:33:50 Your numbers first. And then the rest will work out on its own. So, like, if you are very weak with dates, some students say, “Oh, but my dates aren’t very good, so I’ll fail.”
00:34:13 No such thing. Settle your figures first, then you have no excuse, because this, once you’ve fixed it and you have the calculator I shared with you… And then the calculator has a tutorial. I’ll show you how to do this properly.
00:34:37 So once you get that set up, you can come to this place anytime in the syllabus. But the key thing is to make sure your concepts like this, you understand first.
00:34:59 Because unlike the student who thinks they’re already ahead, they’re still writing dollar signs. As we finish the equation, you know, “I did debit/credit,” and we got dollar signs.
00:35:18 They are writing down now. We are done with the equation already. See? From this equation, we prepare the account.
00:35:32 So for those of you who don’t understand how the account looks, it’s something like this. Or you can go to chapter, I think, 13 or 14. You can look for the capital account.
00:35:54 You can see the nicer looking one done. But what I want you to realize is this: while other students start with the date, particulars, debit, credit, balance…
00:36:08 We are starting from this direction: right to left. And then it’s based on a very key thing I want to show you. It’s in the exact order, like this.
00:36:20 That means if your equation is done correctly, it is very easy to do well. Just transfer it. The working will be done here.
00:36:36 As you can see, 1200. Now going back to Step 3: when you apply, you apply from the numbers first because you will secure the marks for the beginning balance and the ending balance, which is a calculator figure based on an established correct equation.
00:36:58 So this is what I mean. Give the examiner exactly what they want. Be careful. Build the structure of the answer.
00:37:07 Without fear. Forget. “I don’t know why the account is like that.” Then, if you struggle with the account, there’s something else you need to practice.
00:37:21 But for the account, once you view it, if you know that the beginning balance is an account, you set up the start and the end. Anything in between, frankly speaking, is hard to get wrong. Why?
00:37:35 Because the profit is called Income Summary. If you don’t know this anyway, the whole thing would have been wrong.
00:37:42 But because you build the figures in, you can take your time to figure out what 8,001 could be if the question already told you that this is the profit for the year. You might put “Profit for the year” inside.
00:38:03 This is wrong. You should be putting Income Summary. But if you put it this way, your teacher will think that you understood. It’s just that you don’t remember the account.
00:38:16 But if you have done it the other way, from left to right, without making sure the figures are correct… because the numbers are based on logic, you record in chronological order.
00:38:30 And then you understood that the transfer is done on the last day because the ‘Use’ helps save you from making a mistake or writing the day of drawing.
00:38:46 If you write in the equation, following very sequentially, HBUL, where you close from inside out. Then you can see that the whole thing will make sense when you submit.
00:39:00 You can check whether your work is logical. That’s memorizing. “I must remember the capital account is this.” It’s like when you memorize the answer.
00:39:15 Right? Your reference point is to a certain way of asking the question. So in the exam, if the question is phrased a bit differently, then you cannot do it.
00:39:24 Although they’re asking exactly the same thing. You don’t know whether you’re going to be copy-pasting this format or that format. So that’s what many of you struggle with.
00:39:38 And we have a lot of these students each year. So we need to try to get them to this flow.
00:39:45 Now when we say that you can learn four times faster with the LEAP method, we don’t really mean just four times faster. It can be as shocking as 32 times faster.
00:40:05 I don’t know how to put it across to you. But maybe let me show you with an example. Let’s go back to the guide.
00:40:15 Let me see whether I got something interesting to show you from Cost of Sales.
00:40:23 For Cost of Sales, if you turn to your study guide… I think it’s on page 53 or 54. So the example here says you have Sun Ling Ho.
00:40:38 So Sun Ling Ho paid 550 for phone calls. Made 600 calls.
00:40:46 $600 for phone calls. And then they owe. If you owe people, the figure is negative. You owe 50. How much do you use?
00:41:05 So let’s take a look at it. If you pay $550 and you owe $50, you use $600.
00:41:14 Now because they never mentioned whether there was a prepaid at the start of the year. But for this chapter, most of you will be here from Sec 3 Term 3 onwards.
00:41:34 Some of you are learning in Sec 4 Term 1. If you’re learning in Sec 4 Term 2 or 3, it’s quite late.
00:41:44 Now if I build the equation… I have zero at the start. I top up 550. I use 600. So it’s not 660, I need 600. I owe 50.
00:42:00 I bring this equation here, and then I make it vertical. So this is the manual way of doing it. So if you do it twice, you’ll get lazy.
00:42:13 I’m just copying and pasting. You can see a journal entry pattern already. See? $550 debit, credit.
00:42:22 So everything has this pattern called ‘By Yourself’. So here’s the kicker for our students.
00:42:37 We have the calculator built for them. Here, I have Telephone Expense. So I’ll just give you an example data.
00:42:46 So I’ll follow the question data, assuming there is a date. Year end, December 31st. So December 31st, 2025.
00:43:05 This calculator is not available for study guide users; this is just to show you. December 31st. So you go back one year. This is wrong, and it should be January 1st.
00:43:29 There is no beginning balance because it was not mentioned. But you paid $550 and you owe $50 worth of Telephone Expense.
00:43:53 The H is zero. So we want to calculate the ‘Use’. HBUL, you calculate $600 as the amount of expenses incurred. And then the journal entry is as such.
00:44:14 Working is here. Now, we have this calculator. What I’m also saying to you is this: look at the way we built this calculator.
00:44:23 It’s built on the logic first, being able to identify. Just now I identified wrongly that I didn’t put in the correct figures in the first place.
00:44:34 So this is the step that is logic-based. You should realize that I didn’t start with the journal entries first.
00:44:43 Like most of you who struggle with POA do: “Oh, I write the dates first. Then write particulars. Then write debit. Then write credit.”
00:44:59 No, I start with the calculation first. Of course, this is the working. I will rebuild the calculation to show you the HPUL effect and the journal entries.
00:45:11 So the focus is really using HPUL to do your question with speed. The steps I showed you earlier, like this, is the manual version, which you can do really quickly, just like the calculator when you saw it just now.
00:45:29 I think this whole idea of using the calculator to speed things up is a bit like the example I give about auto parking.
00:45:40 So I used to own a vehicle that could auto-park a while back when it was very new. The idea was very new.
00:45:51 So one of the challenges I had was doing parallel parking. But because I was able to see how the machine automatically parks in a tight space, how the steering wheel moves at a certain speed…
00:46:10 Because when I went for my driving test, the way I did it was the instructor would say, “More, more, more, less, less, less.” “Adjust. Adjust. Adjust.”
00:46:28 But when I see how the thing moves and exactly how much it takes, how many spins, and how fast it takes to balance it in one straight adjustment…
00:46:42 Then, when I tried to park on my own, I had the confidence to do the amount of turns needed, just because I kept practicing and using it.
00:46:51 So this is built with the same idea: that you use tools like this to help you learn POA, not by watching videos, but by doing questions.
00:47:03 Then as you make mistakes, you learn. So every new question you do, you should have fewer and fewer mistakes until you reach a point where you make very few mistakes because you already observe the pattern is going to be the same.

Conclusion and Additional Resources

00:47:26 So this little chat about how to do well with the Master POA Study Guide, as well as upcoming bonuses… I hope this helps you.
00:47:38 Feel free to reach out to us in the Q&A section for questions covered in the book, as well as if you have any inquiries for classes or intensives, whenever we launch, you can check us out.
00:48:02 I’ll see you in the next training video. Bye bye for now.