VCE Accounting Question Thread!

[Colokid]

Question 7b only asks you to record the Sales Return in the General Journal, not the Stock Write-Down.

yeah sorry i mean how to calculate the value of the stock write down, in Q7a

[sin0001]

Compak 2013 worth doing?

Bump! Since this thread has picked up speed

[abcdqdxD]

Bump! Since this thread has picked up speed

Yeah Compak exams are generally pretty good. Do it

[sin0001]

Yeah Compak exams are generally pretty good. Do it

Harder than VCAA would you say?

[abcdqdxD]

Harder than VCAA would you say?

Similar for the most part, might slightly harder

[Damoz.G]

yeah sorry i mean how to calculate the value of the stock write down, in Q7a

The first thing to note, is the NRV. The Selling Price has dropped from $150 to $40.

Cost Price of Watches: $50
NRV: $40-$4 = $36
NOTE: Its $4 because the cost for eBay is $8 in TOTAL, so you have to divide it by 2 watches = $4

Therefore, the LOWER of Cost and NRV is $36.

Then you adjust it by doing the Stock Write-Down in the OUT Column, 2 @ $14 = $28.

Bump! Since this thread has picked up speed

Yeah, you should get through any Exams you have, especially if they are 2013. Compak is similar difficulty to VCAA.

[Colokid]

The first thing to note, is the NRV. The Selling Price has dropped from $150 to $40.

Cost Price of Watches: $50
NRV: $40-$4 = $36
NOTE: Its $4 because the cost for eBay is $8 in TOTAL, so you have to divide it by 2 watches = $4

Therefore, the LOWER of Cost and NRV is $36.

Then you adjust it by doing the Stock Write-Down in the OUT Column, 2 @ $14 = $28.

Yeah, you should get through any Exams you have, especially if they are 2013. Compak is similar difficulty to VCAA.

thanks damoz,

[Damoz.G]

thanks damoz,

No worries. That NEAP Exam was the one our school used for the Trial Exam, and it took me a while to figure it out as well, but I was happy that I got it correct.

[Kayte]

Could someone explain to me how net profit changes when period cost is used over product costs?

Thanks 

[sam.utute]

Probably going to be beaten by Damoz Caparva What a top bloke

Could someone explain to me how net profit changes when period cost is used over product costs?

Thanks 

Because period cost recognises the full expense, it means that Net Profit will potentially be lower, IF the business still has unsold stock. In other words, Profit is usually understated as a result of an overstated COGS when period cost is used over product cost.

Hope that made sense. Happy to give an example if you need it.

[unfamila]

With product costs the expense is allocated to each individual item stock; thus when it's sold it's included in the cost of sales. Unless every unit of stock is sold expenses will be lower and henceforth a higher profit. With period costs it's not added to each unit of stock, and all of the expense is recorded in the reporting period was purchased. Thus resulting in higher expenses and a lower profit.
I usually uses calculations to support my answer, I hope this made sense.

EDIT:Beaten 

[Kayte]

Probably going to be beaten by Damoz Caparva What a top bloke

Because period cost recognises the full expense, it means that Net Profit will potentially be lower, IF the business still has unsold stock. In other words, Profit is usually understated as a result of an overstated COGS when period cost is used over product cost.

Hope that made sense. Happy to give an example if you need it.

With product costs the expense is allocated to each individual item stock; thus when it's sold it's included in the cost of sales. Unless every unit of stock is sold expenses will be lower and henceforth a higher profit. With period costs it's not added to each unit of stock, and all of the expense is recorded in the reporting period was purchased. Thus resulting in higher expenses and a lower profit.
I usually uses calculations to support my answer, I hope this made sense.

EDIT:Beaten

Thank you both so much! I understand now 

[Damoz.G]

Probably going to be beaten by Damoz Caparva What a top bloke

HAHA! Thanks bud!

I was too busy making my last minute exam tips for the Accounting Exam, so I didn't see this until now.

[Lucho23]

OK, so I'm doing the 4th Neap Smartstudy Exam and there's this question that's subject to interpretation:

Total Sales: $75 000
Credit Sales to be 50% greater than Cash Sales.

From this, I assume that Cash Sales are $30 000 and Credit Sales are $45 000
However, the answers state that Cash Sales are $25 000 and Credit Sales are $50 000

I thought this was an increase of 100% rather than 50%

What do you guys think?

Thanks!

Also, when a Disposal of a non-current asset occurs, do we record this in the General Journal on Balance Day or on the date that the disposal actually occurred. And if this comes up on the exam, will be required to record on Balance day or on this day (assuming that we have to determine accumulated depreciation)?

Thanks!

[abcdqdxD]

OK, so I'm doing the 4th Neap Smartstudy Exam and there's this question that's subject to interpretation:

Total Sales: $75 000
Credit Sales to be 50% greater than Cash Sales.

From this, I assume that Cash Sales are $30 000 and Credit Sales are $45 000
However, the answers state that Cash Sales are $25 000 and Credit Sales are $50 000

I thought this was an increase of 100% rather than 50%

What do you guys think?

Thanks!

Also, when a Disposal of a non-current asset occurs, do we record this in the General Journal on Balance Day or on the date that the disposal actually occurred. And if this comes up on the exam, will be required to record on Balance day or on this day (assuming that we have to determine accumulated depreciation)?

Thanks!

Yes your interpretation is correct.

As for the Disposal, I think it's on the actual date (in Uni anyway). Because it's not a BDA, I would assume it's not on balance day. Someone might want to confirm this.