VCE Accounting Question Thread!

[sin0001]

Loan Repayments, Interest Expense, Drawings.

It will usually tell you though.

I agree that it usually does state in the question, but theoretically, VCAA expects us to know where GST is applicable in the current study design. I'm not entirely sure if this is true, can someone confirm?

[Damoz.G]

I agree that it usually does state in the question, but theoretically, VCAA expects us to know where GST is applicable in the current study design. I'm not entirely sure if this is true, can someone confirm?

Well think about it as paying GST only on Goods and Services that are purchased. If you do this, you will be fine.

e.g. You are PURCHASING Stock, Prepaid Rent Expense (Service paid for).

Loan Repayments are not PURCHASED, they are repaid. Interest is incurred but its not a purchase. Drawings is not a Purchase.

Hope that helps a bit.

[Kuroyuki]

Confirmed
VCAA will assume that you know which transactions have gst and which don't.
Also to add to Damoz's list wages doesn't have gst and so doesn't the SALE of a non current asset.

[Damoz.G]

Also to add to Damoz's list wages doesn't have gst and so doesn't the SALE of a non current asset.

Yup. I was on my phone, so I tried to make it brief.

Also Accrued Expenses.

[sin0001]

But the Purchase of a non-current asset does include GST, right?

[Kuroyuki]

But the Purchase of a non-current asset does include GST, right?

Yep!

[Damoz.G]

But the Purchase of a non-current asset does include GST, right?

Yup.

EDIT: Beaten.

[abcdqdxD]

But the Purchase of a non-current asset does include GST, right?

On the topic of GST, make sure you can calculate backwards if they give you the total price (GST inclusive). I'm sure many of you already know how to do that though

Always look out for whether GST is inclusive or exclusive to the figure given

[sam.utute]

On the topic of GST, make sure you can calculate backwards if they give you the total price (GST inclusive). I'm sure many of you already know how to do that though

Always look out for whether GST is inclusive or exclusive to the figure given

Good tip! I hope everyone has done a few timed exams to check their time management. Will be critical this year (Y)

[Damoz.G]

I'm sure many of you already know how to do that though

Is there anyone who doesn't know how to calculate GST if its inclusive in a Price? Not gonna judge you or anything, but you'd rather ask now rather than kick yourself in the Exam.

[dreambig]

Thanks everyone!!! All the best studying!

[Mafioso]

Am I allowed to take in two scientific calculators and put one under my desk just in case one of them stops working ?
I'm just a little paranoid about something like that happening in the middle of the exam...

[Damoz.G]

Am I allowed to take in two scientific calculators and put one under my desk just in case one of them stops working ?
I'm just a little paranoid about something like that happening in the middle of the exam...

No. Unfortunately you are only allowed to bring in one Calculator.

[ashs_vb]

not in the constraints of the VCAA study design but was just wondering anyway.
You know those buy one get one free sales, how would they record the sale?
Would they write down stock by 50%? or treat all the stock lost as stock loss? or leave it and record the price of the stock leaving as cost of sales, i'm presuming the mark up is definitely more than 100% if the business owner is sane.

[Kuroyuki]

not in the constraints of the VCAA study design but was just wondering anyway.
You know those buy one get one free sales, how would they record the sale?
Would they write down stock by 50%? or treat all the stock lost as stock loss? or leave it and record the price of the stock leaving as cost of sales, i'm presuming the mark up is definitely more than 100% if the business owner is sane.

Record a normal sale. Then the free thing as advertising expense, that what I would do.