VCE Accounting Question Thread!

[abcdqdxD]

Man this question actually first came up on my exam.. and I had no idea how to answer..

nek minit 50

[Damoz.G]

nek minit 50

I know right! How would be get a 50 without answering that Question! He probably wrote some crap, and the Examiner felt sorry.

Nahhh, it probably clicked into his mind by the end of Writing Time. HAHA! 

[IT_Failure]

I probably wouldn't use the word accurate. Very pedantic I know, but nothing is accurate in accounting as per my uni lecturer  

Accrual accounting is just a system of accounting, whether its more "accurate" compared to cash accounting is a matter for judgement. Obviously you wouldn't be penalised, but just my 2c.

So I should probably say "more accurately" then.

[abcdqdxD]

So I should probably say "more accurately" then.

LOL you won't lose any marks for this. As long as you clearly explain that accrual accounting is : a) a system of accounting       b) matching revenues earned against expenses incurred to determine net profit for the reporting period, I can't see you being penalised.

[Damoz.G]

So I should probably say "more accurately" then.

If you reaalllllyyy want to. But if you were to just mention "accurately..." without the inclusion of "more", as abcdqdxD said you wouldn't be penalised.

EDIT: Beaten by 1 second. 

[Kuroyuki]

Thanks for the replies,
Another question: When does a Loan go into the General journal?
If the owner contributes a NCA which was bought with a loan, that goes into the general journal, but what happens if I used to start a business? (VCAA EXAM 1, 2012)

I included that loan in the general journal, which the solutions didn't. Does that mean it goes in the cash payments journal? There is no chq no. And no cash payments journal given. Unless the loan is still the responsibility of the owner, why is there no general journal entry?

Thanks!

"Similarly, if a business takes out a loan and receives cash, this is not recorded in a General Journal. Such transactions appear in the Cash Receipts Journal" from the assesments report. The question only asked us to prepare the general journal entries. It will in the receipts journal most likely as a bank statement.

[IT_Failure]

"Similarly, if a business takes out a loan and receives cash, this is not recorded in a General Journal. Such transactions appear in the Cash Receipts Journal" from the assesments report. The question only asked us to prepare the general journal entries. It will in the receipts journal most likely as a bank statement.

my mistake, I meant cash receipts journal.
The question says the loan was taken out to START the business, so how could it be in the CRJ? It happened before the journals began

[Damoz.G]

my mistake, I meant cash receipts journal.
The question says the loan was taken out to START the business, so how could it be in the CRJ? It happened before the journals began

If a Loan was received to start a business, it would be recorded in the CRJ.

Loan is only mentioned in the GJ for a transfer by the Owner with a NCA, or the commencement of Double-Entry Accounting.

[Kuroyuki]

my mistake, I meant cash receipts journal.
The question says the loan was taken out to START the business, so how could it be in the CRJ? It happened before the journals began

Yeah the wording is a bit off. I think it means like to get the business up and running, not like start the business meaning formally establishing the business name or something.

[IT_Failure]

Yeah the wording is a bit off. I think it means like to get the business up and running, not like start the business meaning formally establishing the business name or something.

Thanks, it makes sense now!

[BoredSatan]

I know right! How would be get a 50 without answering that Question! He probably wrote some crap, and the Examiner felt sorry.

Nahhh, it probably clicked into his mind by the end of Writing Time. HAHA! 

LOL this was in unit 3 exam which I lost 6.5 marks for lol

[Damoz.G]

LOL this was in unit 3 exam which I lost 6.5 marks for lol

Ahhh, your already in Bendigo now? That was quick!

6.5? You can lose 0.5 marks in Accounting? 

[Mafioso]

If a Loan was received to start a business, it would be recorded in the CRJ.

Loan is only mentioned in the GJ for a transfer by the Owner with a NCA, or the commencement of Double-Entry Accounting.

How do I record the transfer of a loan to the business by the Owner while giving a NCA in the GJ?

[Damoz.G]

How do I record the transfer of a loan to the business by the Owner while giving a NCA in the GJ?

* DR: NCA
* CR:    Loan
* CR:    Capital (If there is any figures remaining)

[BoredSatan]

Ahhh, your already in Bendigo now? That was quick!

6.5? You can lose 0.5 marks in Accounting? 

Lol no I'm still in Melbourne on the train to the city to get onto another train to get to Bendigo

Anyways the exam is marked by 2 examiners so your marks are doubled. If one examiner gives you the mark but the other doesn't then you get .5 of a mark