VCE Accounting Question Thread!

[Fyrefly]

GST and stock control are usually omitted because their correcting entries cancel each other out.

Take note of this example, for instance:

im on exercise 7.10 and I found this a little vague in Correcting Entries

Stock that Betty had used for advertising (worth $500) had been incorrectly recorded as Drawings

I originally thought "Stock Control" + "Drawings" but it was really "Advertising" + "Drawings"

If I remembered correctly, looking at this there should be 4 entries. Two for Reversing the mistake of incorrectly recording it as drawings and two more entries for correcting the entry as advertising. I haven't done any accounting for like 2 months so this might be wrong:

Stock Control       500
   Drawings                  500          (this is correcting the mistake)
Advertising          500
   Stock Control            500          (correcting entry as advertising expense)

There is an identical DR and CR for stock control.

You could do this:

Stock Control       500
   Drawings                  500         
Advertising          500
   Stock Control            500        

  |
  |
  V

   Drawings                  500         
Advertising          500


...and you'll still get the same overall result.

Do you guys sort of get that now?
Like I said before, GST entries usually cancel themselves out too.

[Fyrefly]

If I remembered correctly, looking at this there should be 4 entries. Two for Reversing the mistake of incorrectly recording it as drawings and two more entries for correcting the entry as advertising. I haven't done any accounting for like 2 months so this might be wrong:
Stock Control       500
   Drawings                  500          (this is correcting the mistake)
Advertising          500
   Stock Control            500          (correcting entry as advertising expense)

I'm a little confused as to why there should be a correcting entry for stock control.
It wasn't incorrectly debited in the first place and seeing that they both cancel each other out, isn't this a bit redundant?
Sigh..I hate correcting entries.. O_O

That is what I did last year but I'm not sure if you can just debit advertising expense and credit drawings.
I did Stock Control twice so that my General Ledger for stock control would look correct.

If I just did:
                      General Journal
                  Advertising    500
                     Drawings           500
In my Stock Control general ledger it will still appear as drawings: (I just added random numbers)
                              Stock Control
      Debit                                    Credit
 1/1  Balance 3700                   31/1    Stock Loss  450
   31/1  Bank     12500              31/1    Drawings     500
Notice that if I just debited advertising and credit Drawings it has no effect on Stock Control and still appears as drawings.

If I did this however in the General Journal it would remove the drawings of 500 in the stock control ledger and replace it with Advertising instead.
   General Journal
Stock Control       500
   Drawings                  500    
Advertising          500
   Stock Control            500      

                              Stock Control
      Debit                                       Credit
 1/1  Balance 3700                   31/1    Stock Loss  450
   31/1  Bank     12500              31/1    Advertising     500

I'm not sure if just doing two entries (debiting Advertising and crediting Drawings) is correct, but this is how my teacher taught me so if the solutions has two entries and it probably is correct as well.

You second stock control T-account would actually look like this:

Stock Control
      Debit                                       Credit
 1/1  Balance 3700                   31/1    Stock Loss  450
   31/1  Bank     12500              31/1    Drawings 500
   31/1  Drawings 500                31/1    Advertising     500

Also... even though the stock control account would technically have the incorrect cross-reference if you do the two entries only (DR Advertising, CR Drawings)... the whole point of a correcting entry is to note a mistake and make a correction. That is, despite the fact that the cross-reference is wrong in the stock control account, you'll be able to see from the correcting entry and its accompanying note (eg. "$500 advertising incorrectly recorded as drawings") that it wasn't actually drawings.

Edit: Wait, just give me a second to think about this...

Edit 2: Yeah... I think I'm right... I'm kind of tired though. You know what my problem is? Believe it or not, I was kind of thrown off by the fact there are so few entries in the stock control account... I'm used to seeing quite a few more ^_^;

[Furbob]

GST and stock control are usually omitted because their correcting entries cancel each other out.

Take note of this example, for instance:

im on exercise 7.10 and I found this a little vague in Correcting Entries

Stock that Betty had used for advertising (worth $500) had been incorrectly recorded as Drawings

I originally thought "Stock Control" + "Drawings" but it was really "Advertising" + "Drawings"

If I remembered correctly, looking at this there should be 4 entries. Two for Reversing the mistake of incorrectly recording it as drawings and two more entries for correcting the entry as advertising. I haven't done any accounting for like 2 months so this might be wrong:

Stock Control       500
   Drawings                  500          (this is correcting the mistake)
Advertising          500
   Stock Control            500          (correcting entry as advertising expense)

There is an identical DR and CR for stock control.

You could do this:

Stock Control       500
   Drawings                  500         
Advertising          500
   Stock Control            500        

  |
  |
  V

   Drawings                  500         
Advertising          500


...and you'll still get the same overall result.

Do you guys sort of get that now?
Like I said before, GST entries usually cancel themselves out too.

I think I understand now

thanks future-me.

[eeps]

Not to go off-topic, but, if you want a "fun" exercise related to Accounting, try putting down all DEBIT and CREDIT entries that you can think of, that go in the Stock Control account. I found 16. We spent one whole class doing this, debating the entries.

... and yes, that's what our class did for fun. :p

[nacho]

There is an identical DR and CR for stock control.
You could do this:
Stock Control       500
   Drawings                  500          
Advertising          500
   Stock Control            500      
  |
  |
  V
   Drawings                  500        
Advertising          500
...and you'll still get the same overall result.
Do you guys sort of get that now?
Like I said before, GST entries usually cancel themselves out too.

YAY!!

Not to go off-topic, but, if you want a "fun" exercise related to Accounting, try putting down all DEBIT and CREDIT entries that you can think of, that go in the Stock Control account. I found 16. We spent one whole class doing this, debating the entries.

... and yes, that's what our class did for fun. :p

my god, is that really your idea of fun, hopefully i don't have to be like that to get a 45+ lol.. accounting will ruin all of us..

[eeps]

my god, is that really your idea of fun, hopefully i don't have to be like that to get a 45+ lol.. accounting will ruin all of us..

What's there not to like about Accounting? :p

I thoroughly enjoyed Accounting and although at times tedious, it was a good subject. If you're aiming for 45+ in Accounting, be sure to score well on SACs and the exams. You don't need to ace SACs to get 45+. My friend last year got 50 for Accounting and he rarely got 100% on any SAC. It's about constant practice and minimising your mistakes.

[nacho]

my god, is that really your idea of fun, hopefully i don't have to be like that to get a 45+ lol.. accounting will ruin all of us..

What's there not to like about Accounting? :p

I thoroughly enjoyed Accounting and although at times tedious, it was a good subject. If you're aiming for 45+ in Accounting, be sure to score well on SACs and the exams. You don't need to ace SACs to get 45+. My friend last year got 50 for Accounting and he rarely got 100% on any SAC. It's about constant practice and minimising your mistakes.

Oh that's nice.. Except i tend to make a lot of silly mistakes (i think i've managed to correctly balance a balance sheet like twice out of all the ones i've attempted since last year.. lol)
A school like mine, with a really crap cohort, do you think i'd need to maintain very high SAC scores and probably rank 1?
I know for IT my SS got pulled down a lot because of my cohotrt (but we only had 10 people, really really weak cohort, compared to other subs, and i was ranked lower than i should have been)

[eeps]

A school like mine, with a really crap cohort, do you think i'd need to maintain very high SAC scores and probably rank 1?

Yes, probably. If you are Rank 1 at your school for Accounting, then you'll have every chance of getting 45+. The moderation of SACs won't affect you as such.

[Furbob]

^well considering I have a whopping class size of 6 for Accounting + got the Accounting 1/2 award last year, my chances are looking bright :S but I always must apply Conservatism so that doesn't mean I'm slacking off

and @nacho, I forgot who on this site, but their siggy says "ACCOUNTING IS MAH HAWT SECKS" in a massive font LOLOL.

[lilaznkev1n]

Not to go off-topic, but, if you want a "fun" exercise related to Accounting, try putting down all DEBIT and CREDIT entries that you can think of, that go in the Stock Control account. I found 16. We spent one whole class doing this, debating the entries.

... and yes, that's what our class did for fun. :p

haha you beat me
i only found 13

[Hodgeyhodgey]

Here's the thing,
I have the pdf version of the cambridge textbook and I've just found out that my class is using the neville box textbook, which I won't get until the 20th. My question is, should I start doing work out of the cambridge book until I get the neville box book, or should I just wait until the 20th and then get ahead in that work? OR should I do work out of both textbooks during the year?

[eeps]

Start on the Cambridge textbook. It doesn't matter what textbook you use, just start. Then, when you get the Neville Box textbook use that in conjunction with the Cambridge one. I suggest using the Neville Box textbook mainly, since it's the one prescribed by your school and use the Cambridge textbook to supplement it. If you don't understand a concept in the Neville Box textbook, then read through the other one and vice versa. I don't think there is any point in doing all the exercises from both textbooks.

[Hodgeyhodgey]

Start on the Cambridge textbook. It doesn't matter what textbook you use, just start. Then, when you get the Neville Box textbook use that in conjunction with the Cambridge one. I suggest using the Neville Box textbook mainly, since it's the one prescribed by your school and use the Cambridge textbook to supplement it. If you don't understand a concept in the Neville Box textbook, then read through the other one and vice versa. I don't think there is any point in doing all the exercises from both textbooks.

Sounds fair enough
I'll be doing physics over the next few days just to get questions and a few prac write-ups done, so it may not even be worth starting in Cambridge.. :/
I'm sure I'll figure out a compromise, even if that means seeing/emailing my teacher and see what he thinks

[eeps]

I'll be doing physics over the next few days just to get questions and a few prac write-ups done, so it may not even be worth starting in Cambridge.. :/
I'm sure I'll figure out a compromise, even if that means seeing/emailing my teacher and see what he thinks

That's probably the best thing to do; email your teacher if you have any concerns/questions. Good luck for Accounting this year; work hard and put in the effort and anything is possible.

[Hodgeyhodgey]

I'll be doing physics over the next few days just to get questions and a few prac write-ups done, so it may not even be worth starting in Cambridge.. :/
I'm sure I'll figure out a compromise, even if that means seeing/emailing my teacher and see what he thinks

That's probably the best thing to do; email your teacher if you have any concerns/questions. Good luck for Accounting this year; work hard and put in the effort and anything is possible.

Will do, Accounting and Further should be my best scores since I actually enjoy studying for them, it's going to make it that much easier