ATAR Notes: Forum

Archived Discussion => Business Studies => 2012 => End-of-year exams => Exam Discussion => Victoria => Accounting => Topic started by: sam.utute on November 12, 2012, 11:36:43 pm

Title: VCAA Unit 4 2012 Suggested Solutions
Post by: sam.utute on November 12, 2012, 11:36:43 pm
Here they are:

http://www.connecteducation.com.au/acc-answers.html


:D
Sam and BoredSaint

Let me know if you have any questions/find any mistakes. :)
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: liamlizza1 on November 12, 2012, 11:40:10 pm
The depreciation of equipment in the income statement appears to be wrong...
happy to be corrected if i'm wrong
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 12, 2012, 11:42:49 pm
for 1b) it has a table with
                           Increase/ Decrease/ No effect                 Amount
Revenues
Expenses
Net Profit

I got:
                           Increase/ Decrease/ No effect                               Amount
Revenues                Decrease (sales returns-negative revenue)         500
Expenses                Decrease                                                            250
Net Profit                decrease                                                            250
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 12, 2012, 11:43:08 pm
The depreciation of equipment in the income statement appears to be wrong...
happy to be corrected if i'm wrong

I agree, I go $19000
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: liamlizza1 on November 12, 2012, 11:43:19 pm
In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: sam.utute on November 12, 2012, 11:46:36 pm
The depreciation of equipment in the income statement appears to be wrong...
happy to be corrected if i'm wrong

I agree, I go $19000
Yep, Depreciation needs to be fixed. Good pick up.
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 12, 2012, 11:47:12 pm
In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.

I agree! :)

I really hope these solutions are right.... because then I would get 89/90, even the discuss questions I mentioned everything the same!
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: liamlizza1 on November 12, 2012, 11:48:30 pm
Everything else seems to be fine, thanks Sam. :)
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: sam.utute on November 12, 2012, 11:54:15 pm
In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.

I agree! :)

I really hope these solutions are right.... because then I would get 89/90, even the discuss questions I mentioned everything the same!
That would be an amazing score!!! Congrats! :) Hopefully VCAA agree with us :P
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 12, 2012, 11:55:44 pm
In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.

I agree! :)

I really hope these solutions are right.... because then I would get 89/90, even the discuss questions I mentioned everything the same!
That would be an amazing score!!! Congrats! :) Hopefully VCAA agree with us :P
for 1b) it has a table with
                           Increase/ Decrease/ No effect                 Amount
Revenues
Expenses
Net Profit

I got:
                           Increase/ Decrease/ No effect                               Amount
Revenues                Decrease (sales returns-negative revenue)         500
Expenses                Decrease                                                            250
Net Profit                decrease                                                            250


thoughts about that??
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: abcdqd on November 12, 2012, 11:56:46 pm
i also wrote revenue decrease 500, expense decrease 250, NP decrease 250
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: liamlizza1 on November 12, 2012, 11:57:26 pm
Yep, all good in my books tinks
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: sam.utute on November 13, 2012, 12:00:31 am
i also wrote revenue decrease 500, expense decrease 250, NP decrease 250

Hm... We do classify Sales Return as negative (or contra) revenue. I'd have probably put Rev decrease 500 etc., put a star next to it, and written a paragraph explaining why I'm right :P

Sorry, I didn't know what format the answer book had so I had a guess at what it might have been like.
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 13, 2012, 12:02:09 am
i also wrote revenue decrease 500, expense decrease 250, NP decrease 250

Hm... We do classify Sales Return as negative (or contra) revenue. I'd have probably put Rev decrease 500 etc., put a star next to it, and written a paragraph explaining why I'm right :P

Sorry, I didn't know what format the answer book had so I had a guess at what it might have been like.

completely understandable! just really have to hope VCAA can be genuine people haha
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: mattjarrett on November 13, 2012, 12:09:58 am
for question 11b, regarding the possible consequence for a business that is experiencing a decline in its liquidity, does anyone think that my answer, that it means business will have more trouble meeting debts as they fall due and thus paying creditors on time leading to decreased discount revenue which is a sign of worsened profitability, would grab the two marks?
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: crimmo on November 13, 2012, 12:10:29 am
yeh question 8 for the purchase of the tractor on the credit side of the sundry creditor t account, you left out the gst clearing, so it should be 67,100 cross referenced to tractor/ gst clearing yes?
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: sam.utute on November 13, 2012, 12:13:26 am
yeh question 8 for the purchase of the tractor on the credit side of the sundry creditor t account, you left out the gst clearing, so it should be 67,100 cross referenced to tractor/ gst clearing yes?

Yep! The two things we missed:
1. Depreciation
2. The GST on the tractor.

I've updated the solutions but they haven't been re-uploaded. I think Lex has fallen asleep, so they'll probably be updated tomorrow morning. :P
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 13, 2012, 12:19:34 am
for question 11b, regarding the possible consequence for a business that is experiencing a decline in its liquidity, does anyone think that my answer, that it means business will have more trouble meeting debts as they fall due and thus paying creditors on time leading to decreased discount revenue which is a sign of worsened profitability, would grab the two marks?

I think for two marks is that you'd have to provide something like how to deal with it... like arranging overdraft facility etc, I dunno, you might get 2 marks it just doesn't seem completely right to me...
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: thetimeis on November 13, 2012, 06:47:24 am
Were you required to balance the accounts in Question 8?
I dont think complete means to balance does it?
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: Tragesty on November 13, 2012, 08:51:19 am
Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course!  ::)

Thanks again!
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: Nima2703 on November 13, 2012, 09:30:45 am
Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course!  ::)

Thanks again!
What was your score and mid year score and what SS did you need?
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: abcdqdxD on November 13, 2012, 09:30:58 am
2c: i think you will lose a mark because there are 3 marks, 1 mark for effect on A, L and OE. You didn't explain why assets decreased (stock control) but I'd still give you the mark :)
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: BoredSatan on November 13, 2012, 09:38:20 am
LOL seems we missed a few things :P

My excuse: I was tired.
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: sam.utute on November 13, 2012, 09:50:51 am
Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course!  ::)

Thanks again!

Hm.... Sundries would be correct assuming that Lyall's Imports trades in stock that does not include Leather Chairs.
The information doesn't provide us with any indication of what Lyall's actually sells. To me, it seems inconclusive.

I can see the argument for Sundries - the may just be buying the chairs for their office etc.
However, I don't think we've been given enough information to draw that conclusion. I hate it when they don't give us enough information :(

2c would depend on how the answer booklet template was set up. Usually, you always mention the effect on OE. This would be a requirement if they had given you the three row template (Increase/Decrease/No Effect table). It's usually always better to err on the side of caution and include it. I'm not sure how they'll assess it.

P.S. if you only lost 6 marks, that's still pretty damn good mate!
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: shmootz on November 13, 2012, 11:56:10 am
Could someone explain how you got $19000 for depreciation expense in the budgeted income statement? I think I got $19800 from memory.

Thanks.
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 13, 2012, 12:06:16 pm
Could someone explain how you got $19000 for depreciation expense in the budgeted income statement? I think I got $19800 from memory.

Thanks.

$18000 for the pre-existing equipment for the year, then you get the $20000 new equipment purchases *0.15 = $3000, then from there divide by 12 to get monthly= $250, then 4 months have passed on it so $1000
therefore, depreciation of equipment= $18000+$1000= $19000
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: thetimeis on November 13, 2012, 12:31:48 pm
Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course!  ::)

Thanks again!


Just went through checking past exams and complete doesn't mean balancing, balancing is always asked for specifically. I also dont think 6 marks will be that bad an effort for this exam, surely an A+, what on earth course are you aiming to get into? :P
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: shmootz on November 13, 2012, 01:33:33 pm
Could someone explain how you got $19000 for depreciation expense in the budgeted income statement? I think I got $19800 from memory.

Thanks.

$18000 for the pre-existing equipment for the year, then you get the $20000 new equipment purchases *0.15 = $3000, then from there divide by 12 to get monthly= $250, then 4 months have passed on it so $1000
therefore, depreciation of equipment= $18000+$1000= $19000

Thank you. Sounds like what I did... maybe I did get $19000, I don't really remember.
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: bafron on November 13, 2012, 04:07:54 pm
for question 4 in the CRJ do you add the jun 28 receipt because io didnt because it says they report monthly
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: tinks0795 on November 13, 2012, 05:04:03 pm
for question 4 in the CRJ do you add the jun 28 receipt because io didnt because it says they report monthly

No, its because the question says prepare the journal entries for the above transactions, with June 28 being one of the above transactions.
Title: Re: VCAA Unit 4 2012 Suggested Solutions
Post by: zvezda on November 13, 2012, 05:42:34 pm
don't think ^