VCE Accounting Question Thread!

[chelseaFC]

hey guys, i asked this in a different thread and then i saw this one...

i dont quite understand this question.

(Image removed from quote.)

these are the answers.

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i dont understand where all the values (3300, 5500, 2000, 1200) come from.

could anybody explain? thanks.

what exam was this again?

Work backwards.
Ok firstly, he received a deposit of 20%
so 20% of $10000 (500x20) is $2000
This is 'prepaid sales revenue'
Next you have to determine how much he actually purchased with this $2000
$2000/500 (selling price) is 4
therefore he purchased 4, so 4x300 (cost price) is $1200
NEXT
deduct these figures to determine ones in the sales journal
he purchased 15 bed (15x500) which has a total selling price of $7500
minus $2000 from this figure and you get your $5500
then do the same for cost price
15x300=4500
4500-1200=3300

Hope that helped... badly worded but meh, tricky question

The whole deposit concept. So many practice exams do not allocate the deposit to an amount of stock, but rather just record it all as sales revenue within the general journal and have no stock control or cost of sales. For Example) If the question said he deposited $1000, i would think to direct all the cost of sales into the sales journal and have only the Prepaid Sales Revenue/Sales revenue entry within the General journal. Any clarification? I'm probably making no sense so let me know if i need to elaborate.

[MaddehZ]

chelsea you are correct, what you mentioned is the preferred way to do it (see vcaa 2009)

miraj, efficiency refers to the ability of the business to manage its debtors, creditors and stock


sto, dto, cto are efficiency measures


(ato is too but....best not to confuse people...keep it to profitability)

[Saur11]

If anyone has done the Qats 2009 exam could they explain 1.3.3? I swear it does not make sense, it is recording Prepaid sales registration twice. If anyone is curious the question is as follows.
Firstly, you record a purchase of a computer.
Following entries.
Computer               37000
Prepaid Service Contract    4800
GST-Clearing                      4180
         Sundry Creditor- ACME Computer        45980
This part is fine

The next part asks for the entry in the cash payments journal for the full payment (note there is 3000 trade in for old computers)
I got:
Sundry Creditor                 42980                                  4180  38800
Apparently answer is
Sundry Creditor         42980                                           4180     34000
Prepaid service                                                                       4800

[LuiAlefia28]

hey there, guys.
Can people just give me random theory questions I can try and do myself?
Preferrably no questions directly from exams. But it can be similar. Thanx heaps.

Oh and pklease no the answer so when i reply back you guys can tell me if its right or not.

[skiddy]

I didnt get much help in a thread i made so here are my questions...

Explain why the disposal of asset account is closed off at the end of the period


i said to transfer to profit or loss on disposal to the profit and loss summary account so an accurate profit figure can be determined and to reset the disposal of asset account to a zero balance in preparation for any disposals in the next period?

why is a profit on disposal revenue? How would you word it, referring to the definition of revenues. And visa versa for losses/expenses.

if you sold it for cash but at a loss (you sold it for less than its carrying value) is it still revenue?
and same thing for a trade-in: if you traded a non current asset in it is a reduction in outflow in the form of a decrease in liabilities, but is it still that if you traded it in for less than its carrying value?

[miraj753]

Is the disposal of a non current asset recorded on the date of disposal, or balance day/end of the period?

I've seen it done both ways, so which ones right?

[Hodgeyhodgey]

Is the disposal of a non current asset recorded on the date of disposal, or balance day/end of the period?

I've seen it done both ways, so which ones right?

Looking at past assessment reports it's safe to say that the disposal is recorded on the date that it is disposed.

[luffy]

Is the disposal of a non current asset recorded on the date of disposal, or balance day/end of the period?

I've seen it done both ways, so which ones right?

Looking at past assessment reports it's safe to say that the disposal is recorded on the date that it is disposed.

You record in the general journal on the date it was disposed. (or once the invoice is issued)

You record in the general ledger on balance day.

[miraj753]

Yeah i meant in the general ledger

In VCAA 2010, its recorded at the end of the period, but I've seen at least 2 other exams (cant remember which ones) where its on the date of disposal

[luffy]

Yeah i meant in the general ledger

In VCAA 2010, its recorded at the end of the period, but I've seen at least 2 other exams (cant remember which ones) where its on the date of disposal

Yep - I remember asking my teacher about this. The companies are technically incorrect because they should be posted to the general ledger on balance day. However, I think if the question specifically asks to "post the dispoal to the general ledger on a specific date" it is somewhat indicating to you that it should be recorded on that date. I know what you mean though - it doesn't really make sense.

Don't worry - VCAA will not make ambiguous questions - they will tell us (or we assume its balance day) when to post it in the question

[Hodgeyhodgey]

Is the disposal of a non current asset recorded on the date of disposal, or balance day/end of the period?

I've seen it done both ways, so which ones right?

Looking at past assessment reports it's safe to say that the disposal is recorded on the date that it is disposed.

You record in the general journal on the date it was disposed. (or once the invoice is issued)

You record in the general ledger on balance day.

VCAA 2008 1.4.2

Balance day is Dec 31, disposal occurs on Sep 30. VCAA has recorded the disposal in the ledger at Sep 30, but accumulated depreciation at Dec 31. Now what do we do? haha

EDIT: Hopefully they just make the disposal on the last day of the period and save us all the trouble..

[miraj753]

Yeah hopefully..

on that topic, say we dispose of an asset on the 30 April, and the reporting period ends 31 December

Would we have to record the extra 4 months depreciation in the GJ when disposing of the asset?

if depreciation has not yet been updated

[Hodgeyhodgey]

Yeah hopefully..

on that topic, say we dispose of an asset on the 30 April, and the reporting period ends 31 December

Would we have to record the extra 4 months depreciation in the GJ when disposing of the asset?

if depreciation has not yet been updated

Nope, just record the accumulated depreciation up until the asset is disposed of

[Lucid]

NEW QUESTION

Hey guys, I'm doing some holiday homework and am having trouble with analysing charts...I get that debit has to equal credit but I'm not completely sure how to do it.

On the link below, is my exercise, feel free to make comments/changes where I have gone wrong etc. Thanks!

Red = Not sure
Green = Pretty sure

Here are the transactions:
Kim Swood just opened her own spare parts shop called Monaro Motors. Transactions for
August 2010 showed the following:

Aug. 1 Capital contribution of $10 000 stock and $30 000 cash
2 Purchased premises worth $150 000 paying a $10 000 cash deposit with
the balance funded by a mortgage from QV Bank
3 Cash sale of parts for $400 (cost price $200)
4 Paid $2500 cash to Wilson Fittings for shelving
5 Purchased stock on credit from HolFord Parts for $2600
6 Sold parts on credit to Lemon Rentals for $900 (cost price $450)
7 Paid wages of apprentice $600
8 Kim Swood took home stock worth $1500
9 Received $500 cash from Lemon Rentals

https://docs.google.com/spreadsheet/ccc?key=0AqiRxK896d4gdENaOFZacXNKbVZvXzgzLVV1bkdXNXc

[_avO]

NEW QUESTION

Hey guys, I'm doing some holiday homework and am having trouble with analysing charts...I get that debit has to equal credit but I'm not completely sure how to do it.

On the link below, is my exercise, feel free to make comments/changes where I have gone wrong etc. Thanks!

Red = Not sure
Green = Pretty sure

Here are the transactions:
Kim Swood just opened her own spare parts shop called Monaro Motors. Transactions for
August 2010 showed the following:

Aug. 1 Capital contribution of $10 000 stock and $30 000 cash
2 Purchased premises worth $150 000 paying a $10 000 cash deposit with
the balance funded by a mortgage from QV Bank
3 Cash sale of parts for $400 (cost price $200)
4 Paid $2500 cash to Wilson Fittings for shelving
5 Purchased stock on credit from HolFord Parts for $2600
6 Sold parts on credit to Lemon Rentals for $900 (cost price $450)
7 Paid wages of apprentice $600
8 Kim Swood took home stock worth $1500
9 Received $500 cash from Lemon Rentals

https://docs.google.com/spreadsheet/ccc?key=0AqiRxK896d4gdENaOFZacXNKbVZvXzgzLVV1bkdXNXc

https://docs.google.com/spreadsheet/ccc?key=0AqiRxK896d4gdENaOFZacXNKbVZvXzgzLVV1bkdXNXc#gid=0

Let me know if you're confused with anything