VCE Accounting Question Thread!

[snowisawesome]

Does anyone know where i can get worked solutions for the unit 3/4 accounting workbook?

Bump, does anyone know where I can get worked solutions for the cambridge accounting unit 3/4 workbook (exercises)?
Thanks

[Ajakara]

Hey guys just a quick Q,
For donations of stock, how is advertising involved? I was doing a NEAP Question and it was something along the lines of 'Stock units are donated....but its not recorded...state the effects on the accounting equation.' And the answers had something like Advertising is understated, but I'm not sure where Advertising came from.

[Jigsaw]

Hey guys just a quick Q,
For donations of stock, how is advertising involved? I was doing a NEAP Question and it was something along the lines of 'Stock units are donated....but its not recorded...state the effects on the accounting equation.' And the answers had something like Advertising is understated, but I'm not sure where Advertising came from.

Wouldn't it be Stock understated by x, Capital understated by x? Don't see how advertising is involved either :/

[tchaikno6]

We call it advertising cause when we donate stock, your basically just tryna make yourself look good so in a way it is 'advertising'

[Oxmacro]

Hey guys!

Yeah it's pretty weird, however, we recognise the donation of stock to be of advertising purposes. This is usually because a business won't just donate it's stock for no specific motives, but in giving stock, the business' name, and its products are advertised, not only in a good light for giving away free items, but also for the quality of the goods provided. This in effect may result in future economic benefits flowing to the entity as a person who received the donation may come to the business at a latter date, and purchase its stock. Hence, it works in the same way as an advertising campaign, as it entices customers to purchase goods at the firm.

Hope this helps!

[snowisawesome]

Does anyone know where I can find past unit 3 accounting company practise exams?

[snowisawesome]

What chapters from the Cambridge accounting textbook does sac 1 for unit 3 cover?

[omcgil15]

What chapters from the Cambridge accounting textbook does sac 1 for unit 3 cover?

Generally Chapters 1-6 or in some schools 1-8

[snowisawesome]

Generally Chapters 1-6 or in some schools 1-8

thank you

[snowisawesome]

Borrowed $28,000 cash from the NAB, which was used to purchase another van. The Loan is to be repaid in monthly instalments of $1,000, commencing in May 2015.
Van (asset) will increase by $28,000
loan(liability) will increase by $28,000
are these correct?

Question 2
As at 30 september, assets + liabilities of sam's shop
assets
debtors = 3000
fixtures + fittings = 15000
stock = 25000
fridges = 40000
equities
bank overdraft = 2500
creditors = 7000
loan ( repayable $6000 p.a) = $36000
capital = $37500

In the first week of October 2015, the following occured
october 1. Paid $2000 to creditor
2. sam contributed $5000 of his own money to the business
3. paid $3000 off the loan principal
4. purchased stock on credit for $10000
5. sam took $2500 of the fixtures and fittings home for personal use
6. paid $1200 in advance for the next 6 months

Can someone please explain how to do a balance sheet with all this information? (question 2)
Thanks

[Oxmacro]

Borrowed $28,000 cash from the NAB, which was used to purchase another van. The Loan is to be repaid in monthly instalments of $1,000, commencing in May 2015.
Van (asset) will increase by $28,000
loan(liability) will increase by $28,000
are these correct?

Question 2
As at 30 september, assets + liabilities of sam's shop
assets
debtors = 3000
fixtures + fittings = 15000
stock = 25000
fridges = 40000
equities
bank overdraft = 2500
creditors = 7000
loan ( repayable $6000 p.a) = $36000
capital = $37500

In the first week of October 2015, the following occured
october 1. Paid $2000 to creditor
2. sam contributed $5000 of his own money to the business
3. paid $3000 off the loan principal
4. purchased stock on credit for $10000
5. sam took $2500 of the fixtures and fittings home for personal use
6. paid $1200 in advance for the next 6 months

Can someone please explain how to do a balance sheet with all this information? (question 2)
Thanks

Hey!
Usually for these type of questions, you can either draw up a T ledger, or do each individual transaction, recording the effect on either side of the balance sheet; as I will.
1) Paid a creditor: Bank; down $2000, Creditors Control; down $2000
2) Capital Contribution: Bank; increase $5000, Capital; increase $5000
3) Paid off loan principle: Bank; down $3000, Loan; down $3000
4) Paid stock on credit: Stock Control; increase $10000, GST Clearing (asset); increase $1000, Creditors Control; increase $11000. -I'm assuming you didn't include GST, and assuming the GST balance will become a current asset.
5) Withdrawal of fixtures and fittings: Fixtures and Fittings; down $2500, Drawings (Negative Owner's Equity); increase $2500 (overall decrease by $2500 in Capital).
6) Paid $1200 in advance (for the purposes of this, I will assume it's rent): Prepaid Rent Expense; increase $1200, GST Clearing (asset); increase $120, Bank; decrease $1320.

                         Overall Effect on the Balance Sheet

Current Assets:                                 Current Liabilities:
Stock Control; $35000                                               Bank Overdraft; $3820
Debtors Control; $3000                                             Creditors Control; $16000
GST Clearing; $1120                                                 Loan; $6000                     $25820
Prepaid (Rent) Expense; $1200      $40320         
                                                                             Non-Current Liabilities
Non-Current Assets                                Loan; $27000                   $27000
Fixtures and Fittings; $12500
Fridges; $40000                             $52500          Owner's Equity
                                                                                  Capital; $42500
                                                                                less Drawings; $2500        $40000

Total Assets: $92820                         Total Equities: $92820

Hope this helped! Let me know if you have any questions.

[snowisawesome]

Hey!
Usually for these type of questions, you can either draw up a T ledger, or do each individual transaction, recording the effect on either side of the balance sheet; as I will.
1) Paid a creditor: Bank; down $2000, Creditors Control; down $2000
2) Capital Contribution: Bank; increase $5000, Capital; increase $5000
3) Paid off loan principle: Bank; down $3000, Loan; down $3000
4) Paid stock on credit: Stock Control; increase $10000, GST Clearing (asset); increase $1000, Creditors Control; increase $11000. -I'm assuming you didn't include GST, and assuming the GST balance will become a current asset.
5) Withdrawal of fixtures and fittings: Fixtures and Fittings; down $2500, Drawings (Negative Owner's Equity); increase $2500 (overall decrease by $2500 in Capital).
6) Paid $1200 in advance (for the purposes of this, I will assume it's rent): Prepaid Rent Expense; increase $1200, GST Clearing (asset); increase $120, Bank; decrease $1320.

                         Overall Effect on the Balance Sheet

Current Assets:                                 Current Liabilities:
Stock Control; $35000                                               Bank Overdraft; $3820
Debtors Control; $3000                                             Creditors Control; $16000
GST Clearing; $1120                                                 Loan; $6000                     $25820
Prepaid (Rent) Expense; $1200      $40320         
                                                                             Non-Current Liabilities
Non-Current Assets                                Loan; $27000                   $27000
Fixtures and Fittings; $12500
Fridges; $40000                             $52500          Owner's Equity
                                                                                  Capital; $42500
                                                                                less Drawings; $2500        $40000

Total Assets: $92820                         Total Equities: $92820

Hope this helped! Let me know if you have any questions.

You're awesome thankyou

[samyaks123]

Will the accounting study design change a lot for 2019 and is it a challenge to adapt to the new design or is it mainly similar?

[Secc119]

Iv've heard its moving a lot more in the direction of advice and performance evaluation with less focus on recording. Word is there may even be essays but this is not from my accounting teacher this year. however take this with a grain of salt.

[snowisawesome]

Are the questions in the accounting unit 3/4 checkpoints 2016 the same as the current study design, and will they be useful for revising for sacs if my school hasn't put up past sacs yet?