VCE Accounting Question Thread!

[hjm2]

From memory, its recorded at the agreed value as the accountant normal determines this value for the business, and therefore it is more "relevant" for the future decision making regarding the business and this particular asset. The HC may be more "reliable", however in this case and in most other similar cases relevance overrides reliability.

[abcdqdxD]

The agreed value is more RELEVANT to the business and therefore its decision making

[sin0001]

So what's the difference between single entry & double entry accounting? Can someome give me an example of how each of these accounting methods operate? Plus, why are the existing assets & equities of the business recorded into the general journal, when the owner decidea to switch to double entry accounting?

[abcdqdxD]

So what's the difference between single entry & double entry accounting? Can someome give me an example of how each of these accounting methods operate? Plus, why are the existing assets & equities of the business recorded into the general journal, when the owner decidea to switch to double entry accounting?

Single entry accounting isn't in the scope of the study design for units 3/4. Double entry accounting just means every transaction will have at least two effects on the accounting equation.

Existing assets and equities are transferred over because if you didn't, the business would have no assets/equities in its records, which is clearly not the case.

You might want to take a look at my notes I posted up on AN as it will cover most of your questions

[sin0001]

Thanks, could u link me to ur notes or tell me what they r called

[dreambig]

What does 'equities' refer to? And is it the same as total equities?

[sin0001]

Equities consists of Liabilities & Owner's equity (the right side of a balance sheet)

[sin0001]

Having trouble with following question:
-State whether source docs take place at the input/processing/output stage of the accounting process.

[Kuchiki]

Having trouble with following question:
-State whether source docs take place at the input/processing/output stage of the accounting process.

Input.

(Source documents are the first stage of the accounting process, where we collect the raw financial data that will then be used in the processing and output stages.)

[sin0001]

Derp, had a brain freeze when doing that question

[Kuchiki]

Derp, had a brain freeze when doing that question

We all have those moments.

[TimmyC]

Hey everyone, this will be my first of many questions regarding 3&4 accounting! There is a question about a proprietor borrowing a computer from his sister for free, this should be recorded as an asset at the agreed value correct?

[unfamila]

Hey everyone, this will be my first of many questions regarding 3&4 accounting! There is a question about a proprietor borrowing a computer from his sister for free, this should be recorded as an asset at the agreed value correct?

hey i asked this same question on here last week the answer i got told it was agreed value.
The agreed value is more RELEVANT to the business and therefore its decision making.
so yeah you're correct

[TimmyC]

hey i asked this same question on here last week the answer i got told it was agreed value.
The agreed value is more RELEVANT to the business and therefore its decision making.
so yeah you're correct

Yeah.. probably should of read up. Thanks!

[abcdqdxD]

If the computer has been used then it should be valued at its agreed value