ATAR Notes: Forum

Archived Discussion => 2009 => Mid-year exams => Exam Discussion => Victoria => Accounting => Topic started by: taylor tay bags on June 09, 2009, 10:34:42 am

Title: Quick Accounting question before the mid-year!! HELP!
Post by: taylor tay bags on June 09, 2009, 10:34:42 am

Question: 1.1.4 On 31 January 2008, Rudd receives memo 05 from his accountant which states that an amount of $300 owning for wages has been incorrectly recorded as accrued electricity expense during january.

I have to fix this entry.

This is how i answered.

Since accrued is a liability (therefore CR) i must Debit the incorrect entry first which is assumed would be Accrued electricty and CR the ACTUAL entry of wages (assuming it's a liability)

This was incorrect and apparently got them the wrong way around.

The answer was this:
                                               DEBIT   CREDIT
Accrued Wages EXPENSE     $300
Accrued Electricity EXPENSE           $300

Anyone tell me why this is classified as an expense, because it's considered a liability mostly.

Thanks a lot!

Title: Re: Quick Accounting question before the mid-year!! HELP!
Post by: taylor tay bags on June 09, 2009, 10:40:02 am

Anyone pleaseee :'(

Title: Re: Quick Accounting question before the mid-year!! HELP!
Post by: taylor tay bags on June 09, 2009, 10:56:55 am

Teacher is an idiot, he doesn't teach anything gives us 4 practice exams, this was the last one.

I think they have made mistakes here as well. Stock gain you suppose to take the most recent transaction in the OUT column and the only price of stock is 2 and 3, stock gain of 3 items, therefore where the hell do they get a stock gain of 8 dollars?

If these little mistakes didn't happen (not mine obviously) i would have got 95%+

The Practice mid-year is this:

CSE Test - May 2008
Year 12 Accounting
Written Test 1

Title: Re: Quick Accounting question before the mid-year!! HELP!
Post by: Nelle on June 09, 2009, 10:59:03 am

Don't stress I think it's a mistake..
If you were to fix a mistake for accured electricity you would have to debit in order to return it to balance
Therefore, you would credit accrued wages as it is an expense you have used but not paid.
Just as you have done. :)
Also accrued wages expense and accrued wages are the same (both are current liabilities)

Title: Re: Quick Accounting question before the mid-year!! HELP!
Post by: taylor tay bags on June 09, 2009, 11:01:15 am

Thank you.

Was getting worried lol.

Title: Re: Quick Accounting question before the mid-year!! HELP!
Post by: GoodGuys on June 09, 2009, 11:16:36 am

Don't worry mate,

CSE is one of the worst exam you can do, they have so many mistakes...

Trust be confident as you walk in and you'll be fine!!!
All the best!

Title: Re: Quick Accounting question before the mid-year!! HELP!
Post by: taylor tay bags on June 09, 2009, 11:20:40 am

Thanks, i love you.

Title: Re: Quick Accounting question before the mid-year!! HELP!
Post by: bosley on June 09, 2009, 11:34:25 am

Quote from: GoodGuys on June 09, 2009, 11:16:36 am

CSE is one of the worst exam you can do, they have so many mistakes...

I hated doing the CSE exams, they are the worst type ever