VCE Accounting Question Thread!

[Eugenet17]

Can anyone help with Exercise 2.7 of the Cambridge textbook? I keep getting $91,300 for my total assets but the answer says $91,700 :/

[angelicachee]

Can anyone help with Exercise 2.7 of the Cambridge textbook? I keep getting $91,300 for my total assets but the answer says $91,700 :/

Current Assets
Debtors              3000
Stock                 35000
Prepaid rent        1200

Non-Current Assets
Fixtures and Fitting      12500
Fridges                        40000

Total Assets           91700

I hope it's correct 

[Eugenet17]

Current Assets
Debtors              3000
Stock                 35000
Prepaid rent        1200

Non-Current Assets
Fixtures and Fitting      12500
Fridges                        40000

Total Assets           91700

I hope it's correct 

It is! Awesome, thanks alot

[Eugenet17]

Can i get some help on Exercise 3.6 in the Cambridge Textbook? It's 'Opening balances in the General Ledger', the debit side of my Trial balance is correct but my credit side isnt? Am i supposed to add in the remainder as Capital or something?

[Kuroyuki]

Can i get some help on Exercise 3.6 in the Cambridge Textbook? It's 'Opening balances in the General Ledger', the debit side of my Trial balance is correct but my credit side isnt? Am i supposed to add in the remainder as Capital or something?

I haven't looked at the specific exercise but, the accounting equation is A = L + OE. So in the trial balance after you have included all the Assets and Liabilities, you do A -L to calculate the capital and record it as the last entry on the trial balance. This will also make the trial balance balance. Its quite a common error to not include capital.
Hope this helps somewhat.

[Eugenet17]

I haven't looked at the specific exercise but, the accounting equation is A = L + OE. So in the trial balance after you have included all the Assets and Liabilities, you do A -L to calculate the capital and record it as the last entry on the trial balance. This will also make the trial balance balance. Its quite a common error to not include capital.
Hope this helps somewhat.

Oh okay, do i record it under the capital ledger under Balance?

[Kuroyuki]

Oh okay, do i record it under the capital ledger under Balance?

Yep, I just had a look at the question, because the business is just adopting the double entry system it is recorded as balance.

[Eugenet17]

Yep, I just had a look at the question, because the business is just adopting the double entry system it is recorded as balance.

awesome, thanks alot!

[TheWackyCheese]

So I have some holiday homework, it's Exercise 4.10 out of a book called VCE Accounting Units 3 and 4 (I think) with the business being Harvey's Electricals. It has a list of the transactions that occurred in the month as well as the general ledger balances from the previous month. The first question says to "enter the opening balances into the general ledger accounts" and then to "enter the above transactions into the general ledger". I'm just a bit confused, how am I supposed to enter the transactions into the general ledger without doing an analysing chart first?

[Kuroyuki]

So I have some holiday homework, it's Exercise 4.10 out of a book called VCE Accounting Units 3 and 4 (I think) with the business being Harvey's Electricals. It has a list of the transactions that occurred in the month as well as the general ledger balances from the previous month. The first question says to "enter the opening balances into the general ledger accounts" and then to "enter the above transactions into the general ledger". I'm just a bit confused, how am I supposed to enter the transactions into the general ledger without doing an analysing chart first?

I don't have exact question you are referring to. You would be expected to enter transactions into the general ledger by either posting journals or questions may just ask to post the transactions. In the latter case you kinda have to know which accounts each transaction affects or you could think it through.
For example, Harvey Electrical bought 4000 dollars worth of stock on credit. That would affect Stock control (as the business is buying stock) ,Gst clearing (the business has paid 400 dollars of GST) and creditors control (The business now owes 4400 to a creditor) . You would then record it with the appropriate cross references in the relevant ledger accounts.
I forgot what an analysing chart is. :/
If you give the specific question perhaps i could be more of assistance.
But hopefully i gave you something to work with.

[TheWackyCheese]

Sure thing, I'll PM you the question and if you could get me started that would be a big help, cheers!

[smile+energy]

Can anyone please explain the relationship between accrual accounting and reporting period for me?
And where can I get the answers of Cambridge accounting workbook for free? Sometimes I want to check the answers.
Thanks a lot

[TheWackyCheese]

Well, Accrual Accounting is "Calculating profit by comparing revenues earned against expenses incurred in a particular reporting period" so I guess you could say something about how the transactions in a reporting period are used to calculate profit as this is what accrual accounting requires. Sorry, haven't touched on accrual accounting in a while so maybe someone else has a better answer than me
In regards to the solutions, my school has them posted on our college intranet. You could ask your teacher to upload them to yours but I don't think we are allowed to post textbook stuff on ATARNotes due to copyright or something.

[Eugenet17]

Just need some clarification on something that I forgot about from a few weeks ago, what is discount revenue and how should it be classified?

[Kuroyuki]

Just need some clarification on something that I forgot about from a few weeks ago, what is discount revenue and how should it be classified?

Discount revenue is the reduction in outflows of economic benefit in the form of decrease in creditors control, which increase owner's equity in the form of net profit.
And it should be classified as revenue is that what you mean?

Can anyone please explain the relationship between accrual accounting and reporting period for me?
And where can I get the answers of Cambridge accounting workbook for free? Sometimes I want to check the answers.
Thanks a lot

I cant really remember how I would word this. But Reporting Period states the business' life must be divided into intervals of time so reports can be prepared and profit can be calculated. Profit is calculated under the the accrual accounting method. Which states profit is determinedby matching revenues earned in the period with the expenses incurred. Reporting Period ensures that only relevant revenues and expenses are included for the calculation of accurate profit.
^ say something like that, sorry I cant be of more help. But hopefully i gave you a starting point.