VCE Accounting Question Thread!

[dreambig]

Hey guys this question was on VCAA 2008, exam 2, 2.3.2, and the answers does not include the GST when calculating the deposit....
I initially did include it but got it wrong


So i guess you dont include it then?

[abcdqdxD]

Yeah, so you would do 20% x 500=$100 deposit, wouldn't you?

iirc its 0.2 x 550

note with past exams pree 2012 rules regarding this changed from memory (better check the vcaa bulletin for changes to SD though)

[Damoz.G]

iirc its 0.2 x 550

note with past exams pree 2012 rules regarding this changed from memory (better check the vcaa bulletin for changes to SD though)

GST is charged on the total of $3,000+$500 = $3,500
10% x $3,500 = $350 (Recorded in GST Column of Sales Journal)

2012 Exam 2:

[Kuroyuki]

i think we are getting confused.
The vcaa 2012 question was different as it specifically says 500 dollars.
But in the other question it says 20% of that value. And that value was 500 +GST which is 550. 
So we should record the deposit of a 110.
but when we adjust in the general journal we might have to do something like
prepaid sales 110
sales             100
GSt clearing  10
we shouldnt include gst in deposit unless it specifically says so.

[Damoz.G]

I'll be honest - That doesn't sound right.

As far as I know, GST is always charged at the time of the Sale when the goods are provided to the customer. So I would say its $100 Deposit. Then for when the goods are given I'd say its $400+$50 GST = $450 Balance owed on the Sale from the Debtor.

[Kuroyuki]

I'll be honest - That doesn't sound right.

As far as I know, GST is always charged at the time of the Sale when the goods are provided to the customer. So I would say its $100 Deposit. Then for when the goods are given I'd say its $400+$50 GST = $450 Balance owed on the Sale from the Debtor.

Yeah i know what you mean
but in the specific question i think thats how we were meant to do it.

[Damoz.G]

Yeah i know what you mean
but in the specific question i think thats how we were meant to do it.

Hmmm......Even though its says "of that value", personally, I wouldn't include GST.

That's just my opinion.

[abcdqd]

Study Design page 29:

– liability approach of recording prepaid revenue with no GST being recorded at the time of the
deposit

http://www.vcaa.vic.edu.au/Documents/vce/account/AccountingSD-2013.pdf

[Mafioso]

Has anyone else notices an error in the Neap 2013 paper?
In the last question, the statement of account for SW Sports says that on the 2nd of June, a credit sale was made to SWS with the invoice number of X34 and amount of 3740. But in the sales journal, X34 was for a sale to Club Hampton...
Minor issue, but I just wanted to point it out.

[Damoz.G]

Study Design page 29:http://www.vcaa.vic.edu.au/Documents/vce/account/AccountingSD-2013.pdf

Exactly, so as I said before, no GST on the Deposit. So its $100 deposit. Then $450 when the Sale occurs and the goods are given.

Has anyone else notices an error in the Neap 2013 paper?
In the last question, the statement of account for SW Sports says that on the 2nd of June, a credit sale was made to SWS with the invoice number of X34 and amount of 3740. But in the sales journal, X34 was for a sale to Club Hampton...
Minor issue, but I just wanted to point it out.

Yup. When doing Question 9c, use the Statement of Account instead of the Sales Journal.

[Mafioso]

In NEAP 2013 question 1a, I keep getting $420 for the prepaid rego for the GJ but the answers say 490. How do I arrive at $490? My thinking was that between October to March, 6 months have passed so the original $840 paid is divided by 12 then multiplied by 6 to give 6 months incurred.

[Damoz.G]

In NEAP 2013 question 1a, I keep getting $420 for the prepaid rego for the GJ but the answers say 490. How do I arrive at $490? My thinking was that between October to March, 6 months have passed so the original $840 paid is divided by 12 then multiplied by 6 to give 6 months incurred.

840/12=$70 per month

Consumed: October, November, December, January, February
Remaining: March, April, May June, July, August, September

7 months x $70=$490

Use your fingers! It actually helps.

[itsdanny]

When you record it, you don't recognise the GST in your CRJ. But the deposit is levied on the total amount payable which includes GST.

This is what I have been told. But I have actually heard multiple different comments saying otherwise. So I am still not exactly sure (especially with the non-congruence going around here with the idea!!! Is there a correct answer?

[Damoz.G]

This is what I have been told. But I have actually heard multiple different comments saying otherwise. So I am still not exactly sure (especially with the non-congruence going around here with the idea!!! Is there a correct answer?

What do the answers say? Also, what company and year is the question from?

I'm confident that I am correct in my explanation.

[Mafioso]

Use your fingers! It actually helps.

Cheers mate . Also, question 2e in the same exam has debited prepaid rent expense on the 1st of April in the question booklet but in the answer template it has 1st of March debited in the ledger. Screwed up the 2 marker because of this. I thought Neap was supposed to be perfect!