ATAR Notes: Forum

Archived Discussion => 2009 => Mid-year exams => Exam Discussion => Victoria => Accounting => Topic started by: monokekie on June 09, 2009, 05:09:21 pm

Title: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:09:21 pm
1. for the outflow statement for the six moneths, what is the bank balance at start?

2. for the omission of credit sales, what are the two revenue items?
    there are two sayings (creditsales and stock gain ) and (credit sales and net profit)

3. for the use of statment of account, what qualitative characteristic is it?

Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:10:12 pm
1. 20000
2. Sales and Stock Gain
3. Realibility
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:11:03 pm
why 20000?
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:11:25 pm
because the owner contributed $20 000 at the start
Title: Re: unsure questions on exam
Post by: GoodGuys on June 09, 2009, 05:12:53 pm
YESSSSSSSSSSSS

I FLUKED THAT BALANCE !!!!!!!!!!!!!!!!!!!!
OMG IM SO HAPPY.

Thanks flaming for re-assuring that question
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 05:13:51 pm
also why stock gain?

that was the question i had no clue.
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:15:41 pm
in the trial balance there was a stock gain
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:17:52 pm
ova stated or unda stated?
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:18:19 pm
overstated
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:19:11 pm
arhh i see thanks
Title: Re: unsure questions on exam
Post by: jag on June 09, 2009, 05:21:44 pm
Explain the effect on net profit of using the FIFO cost assignment method at a time when suppliers' prices are falling?
Title: Re: unsure questions on exam
Post by: sophx on June 09, 2009, 05:22:12 pm
what did people do for the balance day adjustment with the rent .. last question
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 05:22:27 pm
overtstates cost of sales, understates net profit?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 05:22:54 pm
in the trial balance there was a stock gain

ahhh damn 3 marks out the door lol
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:24:39 pm
overtstates cost of sales, understates net profit?

thats what i wrote.

what did people do for the balance day adjustment with the rent .. last question

$4000 as he paid in january for 3 months early, so rent will be for april may june
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:25:49 pm
why isn't it 8000 for rent expense as its for 6 months? and this is a 6 month's trial balance?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 05:25:58 pm
overtstates cost of sales, understates net profit?

thats what i wrote.

what did people do for the balance day adjustment with the rent .. last question

$4000 as he paid in january for 3 months early, so rent will be for april may june

wouldnt it be $8000? Jan-june
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:27:57 pm
overtstates cost of sales, understates net profit?

thats what i wrote.

what did people do for the balance day adjustment with the rent .. last question

$4000 as he paid in january for 3 months early, so rent will be for april may june

wouldnt it be $8000? Jan-june

i'm not really sure but he pays 3 months in advance, not for 3 months, since he paid in january it will start at march
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:28:57 pm
haiz. so tricky.

i wonder what would be this year's cut off. anyone has any idea?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 05:30:43 pm
hopefully really low?
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:31:47 pm
rofl :) what sort of question was that.

excuse my fussiness... haha
Title: Re: unsure questions on exam
Post by: sophx on June 09, 2009, 05:32:04 pm
its usually around 78/90 isn't it
i would say it would be around that or lower.
Title: Re: unsure questions on exam
Post by: MiCCAS on June 09, 2009, 05:33:03 pm
Mm.. did better than expected, shitty kids were annoying me all morning who came to our study group (4 people) and mucked around.. apart from that, went in and did my best so we shall see :)
Title: Re: unsure questions on exam
Post by: GoodGuys on June 09, 2009, 05:35:53 pm
overtstates cost of sales, understates net profit?

thats what i wrote.

what did people do for the balance day adjustment with the rent .. last question

$4000 as he paid in january for 3 months early, so rent will be for april may june

omg i had 1 minute remaining and i jst chucked in 4000...
I love you flaming if ur right!!!
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:44:05 pm
its usually around 78/90 isn't it
i would say it would be around that or lower.


i hope you are psychic i really do..
Title: Re: unsure questions on exam
Post by: rlobo1 on June 09, 2009, 05:44:42 pm
i think the rent expense was 6,000 for the overall 6 month period because it said that they pre-paid rent in Jan then March then June meaning the payment in Jan started in April and covered April and May and then the payment in march was to cover June and July and so forth. That being said I wrote $4000....:S can anyone definitely say!?
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:46:01 pm
i think the rent expense was 6,000 for the overall 6 month period because it said that they pre-paid rent in Jan then March then June meaning the payment in Jan started in April and covered April and May and then the payment in march was to cover June and July and so forth. That being said I wrote $4000....:S can anyone definitely say!?

it cant be  6000, each month the rent was 4000/3 which means 6000 is not possible to get
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 05:46:32 pm
12000/9=1333.3 X 6 = $8000
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 05:48:10 pm
ohh 3 months 4000, 6 months 8000..

Title: Re: unsure questions on exam
Post by: rlobo1 on June 09, 2009, 05:49:34 pm
well this is my logical justification lol but by no means is correct....
The business commenced on Jan and made a payment of rent then of $4000. The next payment was in March of 4000. Therefore, the BDA for rent expense must be $6000 because the Jan is 3 months in advance of april and march is 3 months in advance of Jun thus meaning each month was $2000. seeing as they commenced and only prepaid rent 3 months in advance on Jan, the rent expense for Jan Feb and March was just paid each month with the prepaid kicking in at April. 4000/2 = 2000 per month...:S
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 05:49:58 pm
i'm not sure but thats what i had.

this exam is tricky and long
Title: Re: unsure questions on exam
Post by: GoodGuys on June 09, 2009, 05:53:39 pm
hopefully really low?

i think its going to higher than 08 for sure...
I think generally it was easier, beside the trick question.. and alot of silly mistakes...

but maybe 79/90 for A+
and maybe 70 or 71 for A
im not sure...
Title: Re: unsure questions on exam
Post by: GoodGuys on June 09, 2009, 05:54:46 pm
i'm not sure but thats what i had.

this exam is tricky and long

YES YES YES///
FOR SURE IT WAS LONG.. ESPECIALLY QUESTION 1. took long time.
i wrote a little message for the examiner...
would that lower my score?
i said "too long""
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 05:55:37 pm
my prediction is that the A+ will be around 80/90
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 06:03:05 pm
i still wonder. why wouldn't stock gain be understated. if the credit sale is recorded, there would be less stock in the firm's stock control account, the stock gain would be higher.
If the credit sale is not recorded, there would be more stock in the firm's stock control account, the stock gain would be lower, thus understating the stock gain???

and why wouldn't the opening balance be zero. since it is clearly stated on the question that owner contributed 20000 to commence business on 1 Jan, wouldn't it be a cash receipts which should be included in the cash flow statement instead of opening balance?
Title: Re: unsure questions on exam
Post by: geeza23 on June 09, 2009, 06:04:15 pm
i'm not sure but thats what i had.

this exam is tricky and long

YES YES YES///
FOR SURE IT WAS LONG.. ESPECIALLY QUESTION 1. took long time.
i wrote a little message for the examiner...
would that lower my score?
i said "too long""
how was it that long i finished with like 15 mins to go
Title: Re: unsure questions on exam
Post by: Ilovemathsmeth on June 09, 2009, 06:06:45 pm
Okay I don't get the stock gain part.

If you omitted a credit sale, I just thought there would be impact on credit sales and cost of sales. That is that credit sales would be understated, cost of sales understated. I don't get where the stock gain comes in. Can someone help out?

Thanks!
Title: Re: unsure questions on exam
Post by: geeza23 on June 09, 2009, 06:12:19 pm
another question does anyone know when we get our results?i heard its around august?
Title: Re: unsure questions on exam
Post by: phanphy on June 09, 2009, 06:12:55 pm
The rent expense was $8000

Omission of credit sales:
Credit sales understated (Revenue)
Cost of sales understated (Expense)

Was the opening bank balance for the Statement of Cash Flows $20,000?
Title: Re: unsure questions on exam
Post by: Ilovemathsmeth on June 09, 2009, 06:17:17 pm
Yes because he contributed it at the very beginning and it is valid to use that figure as it is a 6 month reporting period.

That's what I thought too! I thought 8000 as well.
Title: Re: unsure questions on exam
Post by: hellovce on June 09, 2009, 06:20:44 pm
i'm so sad :( i dawdled ont he first question for so long!
Title: Re: unsure questions on exam
Post by: Ilovemathsmeth on June 09, 2009, 06:22:13 pm
yeah it was too long
Title: Re: unsure questions on exam
Post by: GoodGuys on June 09, 2009, 06:26:16 pm
i'm not sure but thats what i had.

this exam is tricky and long

YES YES YES///
FOR SURE IT WAS LONG.. ESPECIALLY QUESTION 1. took long time.
i wrote a little message for the examiner...
would that lower my score?
i said "too long""
how was it that long i finished with like 15 mins to go

ekey!!!
Title: Re: unsure questions on exam
Post by: taylor tay bags on June 09, 2009, 06:26:30 pm
I thought the rent expense would be 12,000 becuase it said rent was paid 4000 on Jan march and June.. reporting period was Jan-June 31 therefore Debit: Rent expense 12,000 and Credit: Prepaid Rent 12,000 which was the remaining of the prepaid asset..
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 06:26:39 pm
first question as in the whole 45 marks? or just like the 1.1 section?
Title: Re: unsure questions on exam
Post by: phanphy on June 09, 2009, 06:26:59 pm
Aug 13th i think results
Title: Re: unsure questions on exam
Post by: andrew4443 on June 09, 2009, 06:28:14 pm
For total equities it was supposed to be both the capital and liabilities accounts?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 06:31:14 pm
i had liabilities, i was unsure too
Title: Re: unsure questions on exam
Post by: phanphy on June 09, 2009, 06:32:06 pm
Equities are claims on the assets of the firm..
consisting of both Liabilities and Owner's equity

So yeah, should have included Liabilities and Owner's Equity (inclusive of net profit, drawings)
Title: Re: unsure questions on exam
Post by: green04 on June 09, 2009, 06:53:15 pm
what questions this?
Title: Re: unsure questions on exam
Post by: phanphy on June 09, 2009, 06:56:56 pm
1.5.2
Title: Re: unsure questions on exam
Post by: sdhains on June 09, 2009, 07:01:53 pm
can someone explain to me why this would be wrong.
'rent is paid three months in advance. three payments of $4000 were made in January, March and June 2009'.
The general journal entry for prepaid expense on June 30th:
Rent DR 10667
Prepaid Rent CR         10667

my logic: considering prepaid rent is paid 3 months in advance starting in january. then the 3 months which rent is prepaid must be for  january, febuary and march, as rent is paid in advance again in March. Therefore wouldnt rent expense be 8000 + 4000/3 as on the 30th of june the rent expense would have been consumed for that month?
Title: Re: unsure questions on exam
Post by: andrew4443 on June 09, 2009, 07:06:15 pm
can someone explain to me why this would be wrong.
'rent is paid three months in advance. three payments of $4000 were made in January, March and June 2009'.
The general journal entry for prepaid expense on June 30th:
Rent DR 10667
Prepaid Rent CR         10667

my logic: considering prepaid rent is paid 3 months in advance starting in january. then the 3 months which rent is prepaid must be for  january, febuary and march, as rent is paid in advance again in March. Therefore wouldnt rent expense be 8000 + 4000/3 as on the 30th of june the rent expense would have been consumed for that month?

This is what I posted in another thread:
"I'm pretty sure it was $8000, because in January he paid rent for three months advance (for $4000) so he had rent from January,Feb and March, then in March he paid for April, May and June (for $4000) then in June he paid for the next three months starting from the 1 July

Therefore he has used up $8000 of prepaid rent , so you debit rent expense $8000 and credit Prepaid rent $8000"

Title: Re: unsure questions on exam
Post by: sophx on June 09, 2009, 07:10:41 pm
was the trick question the one where you had to show how wages expense would be after adjusting /closing entries?
and all u had to do was put in the balance shown from the trial balance and close it to the p and l statement?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 07:19:52 pm
i think i had

wages expense 61400
accrued wages 1800
Title: Re: unsure questions on exam
Post by: rlobo1 on June 09, 2009, 07:24:53 pm
did anyone notice that their was a structural flaw in question one? they said the reporting period was 1 year ending on june the 30th however they wanted us to post and balance the general ledger accounts on the 31st of may when this is only done at the end of the reporting period lol
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 07:26:20 pm
no i did not notice, i'll give u positive karma for that lol
Title: Re: unsure questions on exam
Post by: Nelle on June 09, 2009, 07:47:33 pm
Dam I just realised that cash flow statements should have had a zero balance at the 1st of January as you entered $20000 into the cash reciepts already (capital contribution) and therefore, you are recording it twice..if you enter that as the bank balance at the start of the period.
Did anyone else make this mistake?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 07:51:57 pm
yes, i think alot of people did.
Title: Re: unsure questions on exam
Post by: rlobo1 on June 09, 2009, 08:01:10 pm
Dam I just realised that cash flow statements should have had a zero balance at the 1st of January as you entered $20000 into the cash reciepts already (capital contribution) and therefore, you are recording it twice..if you enter that as the bank balance at the start of the period.
Did anyone else make this mistake?

nah, you are correct. the vce co-ordinator and the 3/4 accounting teacher at my school read through that question and said you would record the opening bank balance as $20,000. This is because the cross reference to capital contribution in the general ledger would be bank and you post commencing entries of a business on the day they occur. Thereofre the opening bank balance in the cash flow statement is 20,000
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 08:03:14 pm
rlobo, are you saying 20000 is not part of the 30000 capital?

Title: Re: unsure questions on exam
Post by: mtwtfss on June 09, 2009, 08:13:10 pm
i think i had

wages expense 61400
accrued wages 1800

Yeah realised that after I walked out, you had to realise it was a post adjusted trial balance and that the wage figure was after the accrued figure had been calculated into it.

Ahhh, dont think many people have realised it?
Title: Re: unsure questions on exam
Post by: mtwtfss on June 09, 2009, 08:17:47 pm
rlobo, are you saying 20000 is not part of the 30000 capital?



Pretty sure the bank balance at 1/1/09 was 20,000 and this is the value required at the 1/1/09 in the CFS.
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 08:21:55 pm
i think i had

wages expense 61400
accrued wages 1800

Yeah realised that after I walked out, you had to realise it was a post adjusted trial balance and that the wage figure was after the accrued figure had been calculated into it.

Ahhh, dont think many people have realised it?

so you agree that, that is right?

rlobo, are you saying 20000 is not part of the 30000 capital?



Pretty sure the bank balance at 1/1/09 was 20,000 and this is the value required at the 1/1/09 in the CFS.

yep i had that down, but alot of people is saying it is included in the $30k.

man accounting is so confusing.
Title: Re: unsure questions on exam
Post by: mtwtfss on June 09, 2009, 08:26:27 pm
You're right, I realised it on the train home haha, how stupid can i be closing off the account with 65000 to the P+L summary when clearly i had just used 63200 as the value in the P+L..farkkkkkk

hope i actually did this and got it right just didnt remember that i did hahaha

prets sure its 20,000 as well

and effect of the credit sale in 1.7:

sales understated
stock gain overstated
cost of sales understated

yeah ?
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 08:27:15 pm
there was an entry into the cash receipts journal on 1Jan under the general journal for opening of double entry. so i reckon this is the same cash receipts journal that would be used to record the cash receipts for this six months?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 08:27:34 pm
i just had

sales understated
cost of sales understated

forgot stock gain
Title: Re: unsure questions on exam
Post by: gossipqueen on June 09, 2009, 08:27:49 pm
I first put the balance at $20000, but then I changed it to $0.

I thought that if it's a new business, they start out with no bank balance, because it's their first reporting period.

I'm not sure though...

Also for the omitting a credit entry question, I did cost of sales and sales. I don't understand how stock gain could be there, if the entry was omitted, then woudn't the business have no record that a sale happened, and so it wouldn't be reported in the stock cards either?

Gah I love accounting, but it's so confusing...

Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 08:28:52 pm
why stock gain overstatedd? lol
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 08:29:16 pm
there was an entry into the cash receipts journal on 1Jan under the general journal for opening of double entry. so i reckon this is the same cash receipts journal that would be used to record the cash receipts for this six months?

go to page 4, last post by rlobo. the post is pretty convincing. hopefully its right lol
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 08:30:43 pm
why stock gain overstatedd? lol

cost of sales decreases stock

if you omit that, your are overstating stock as it should decrease

? hopefully that is wrong because i didnt put down stock gain
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 08:33:11 pm
i don't really trust teachers that much rofl.

Some of vce teachers in my school taught accounting for only 1 year haha....
Title: Re: unsure questions on exam
Post by: mtwtfss on June 09, 2009, 08:36:03 pm
why stock gain overstatedd? lol

cost of sales decreases stock

if you omit that, your are overstating stock as it should decrease

? hopefully that is wrong because i didnt put down stock gain

Hopefully we're both right in some impossible way?

but nah if it was worth 3 marks, pretty sure there would have to be 3 entries, and trust me i busted my gut looking for the last effected account hahaa
Title: Re: unsure questions on exam
Post by: plbuck on June 09, 2009, 08:44:28 pm
That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.
Title: Re: unsure questions on exam
Post by: Lemollin on June 09, 2009, 08:46:54 pm

Hopefully we're both right in some impossible way?

but nah if it was worth 3 marks, pretty sure there would have to be 3 entries, and trust me i busted my gut looking for the last effected account hahaa

Still dont get why Stock gain would be overstated =[
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 08:48:57 pm
That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

are you saying that its stock loss instead?

damn.. so confusing


also what are your thoughts/answers on the BDA on last page of the electricty bill?
Title: Re: unsure questions on exam
Post by: mtwtfss on June 09, 2009, 08:52:26 pm
That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

Yeah but there was only a stock gain account, you cant overstate an account which does not exist :P
Title: Re: unsure questions on exam
Post by: mtwtfss on June 09, 2009, 08:55:07 pm
That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

are you saying that its stock loss instead?

damn.. so confusing


also what are your thoughts/answers on the BDA on last page of the electricty bill?

Yeah another good question by VCAA.

Credit Wages
Debit GST Clearing
Debit Electricity
Title: Re: unsure questions on exam
Post by: plbuck on June 09, 2009, 08:57:42 pm
I asked my teacher afterwards and she did not know either.

It cannot be stock loss cause thats not a revenue
If you have a look at the Sales Journal their is only 3 things; Cost of Sales, Sales, GST

So they are the only things that get posted to the ledgers. "GST does not get reported in the Profit or Loss statement"
Title: Re: unsure questions on exam
Post by: monokekie on June 09, 2009, 08:59:05 pm
revenue item=stock gain
Title: Re: unsure questions on exam
Post by: GoodGuys on June 09, 2009, 08:59:25 pm
wow 6 pages...

man i jst want to ignore this post all along....
learning my mistakes, freaks me out even more!!
ill be back once this is over
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 08:59:48 pm
stock loss can be a expense
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 09:00:21 pm
wow 6 pages...

man i jst want to ignore this post all along....
learning my mistakes, freaks me out even more!!
ill be back once this is over

your mistakes may not even be mistakes
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 09:01:16 pm
wow 6 pages...

man i jst want to ignore this post all along....
learning my mistakes, freaks me out even more!!
ill be back once this is over

your mistakes may not even be mistakes

yep this is by no means the solutions, we're just posting what we think
Title: Re: unsure questions on exam
Post by: sdhains on June 09, 2009, 09:03:18 pm
I asked my teacher afterwards and she did not know either.

It cannot be stock loss cause thats not a revenue
If you have a look at the Sales Journal their is only 3 things; Cost of Sales, Sales, GST

So they are the only things that get posted to the ledgers. "GST does not get reported in the Profit or Loss statement"


If there was a Stock Gain before the credit sales transaction was omitted, Stock gain would be overstated.
For example, if there was a stock gain of $1000, and cost of sales omitted was $200. Stock Gain would be overstated by $200 as when the stock take was conducted there was $1000 that hadn't been accounted for. However, $200 can now be accounted for, therefore that stock gain figure of $1000 is overstated by $200.
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 09:07:59 pm
i think that question on the assessment report would be like 2% got the full marks lol
Title: Re: unsure questions on exam
Post by: Lemollin on June 09, 2009, 09:09:10 pm
Well, its a 3 marks question, so you will only lose 1 for not including Stock gain (Overstated), am i right?
Title: Re: unsure questions on exam
Post by: sdhains on June 09, 2009, 09:10:57 pm
Well, its a 3 marks question, so you will only lose 1 for not including Stock gain (Overstated), am i right?

correct. i'm very interested as to why it would be correct to have starting balance as $20,000 and $30,000 as the capital injection figure.
 
PS. thats what i had
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 09:11:42 pm
me too.
Title: Re: unsure questions on exam
Post by: chris1991 on June 09, 2009, 09:23:19 pm
i'm not sure but thats what i had.

this exam is tricky and long

YES YES YES///
FOR SURE IT WAS LONG.. ESPECIALLY QUESTION 1. took long time.
i wrote a little message for the examiner...
would that lower my score?
i said "too long""
how was it that long i finished with like 15 mins to go
Yeh I finished with 20 minutes left, and thats after spending heaps of time on question 1 (the ledgers).
Title: Re: unsure questions on exam
Post by: chris1991 on June 09, 2009, 09:26:47 pm
i think i had

wages expense 61400
accrued wages 1800

Yeah realised that after I walked out, you had to realise it was a post adjusted trial balance and that the wage figure was after the accrued figure had been calculated into it.

Ahhh, dont think many people have realised it?
Yeh I got that right, only after i had finished and i looked back over it. I found 2 mistakes when I went back over my work which was good.
Title: Re: unsure questions on exam
Post by: chris1991 on June 09, 2009, 09:31:00 pm
I wrote stock gain, but had it as understated......Ive read everyones explanations, but cant get my head around why its overstated haha. Just disapointing, as I got the stock gain part, and was one of the only kids at my school to get it, but wont get any extra marks for it cos i got the over/under wrong (and theres no half marks).
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 09:31:33 pm
on 2.1.1, what was the prepaid service?
Title: Re: unsure questions on exam
Post by: steph753 on June 09, 2009, 10:34:22 pm
on 2.1.1, what was the prepaid service?

it was a service agreement on the computer system
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 10:37:04 pm
soz i meant how much was it in $? lol
Title: Re: unsure questions on exam
Post by: steph753 on June 09, 2009, 10:38:28 pm
it was $2400 per annum and it was paid 12 months in advance on Nov 30 29008, for the year commencing Jan 1 2009
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 10:46:26 pm
so $2200?
Title: Re: unsure questions on exam
Post by: steph753 on June 09, 2009, 10:57:43 pm
thats what i got so i hope so
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 10:59:53 pm
nice :)
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 11:19:44 pm
what bout the theory about FiFo?

i said something about overstates cost of sales and understates net profit. i was really unsure on that one. had to rub it like 5 times lol
Title: Re: unsure questions on exam
Post by: phanphy on June 09, 2009, 11:21:15 pm
what bout the theory about FiFo?

i said something about overstates cost of sales and understates net profit. i was really unsure on that one. had to rub it like 5 times lol

Yeah, it assumes more expensive stock sold first.

Thus COS is overstated
Net profit understated
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 11:21:30 pm
what bout the theory about FiFo?

i said something about overstates cost of sales and understates net profit. i was really unsure on that one. had to rub it like 5 times lol

same lol, i remember having a question on the sac that said incase of rising prices and so i'd imagine i'd be the opposite if it was falling.
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 11:23:50 pm
yeah i remember doing it in cambridge questions like 5 times lol still confusing tho..

also is your tickertimer for the end of year the proper date ?
Title: Re: unsure questions on exam
Post by: Flaming_Arrow on June 09, 2009, 11:25:16 pm
yeah i remember doing it in cambridge questions like 5 times lol still confusing tho..

also is your tickertimer for the end of year the proper date ?

yer october 30 isnt it?
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 09, 2009, 11:25:41 pm
i have no clue man lol
Title: Re: unsure questions on exam
Post by: mc on June 10, 2009, 10:10:37 pm
bank balance $0 yer?
Title: Re: unsure questions on exam
Post by: DLEG on June 11, 2009, 01:09:11 am
That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

are you saying that its stock loss instead?

damn.. so confusing


also what are your thoughts/answers on the BDA on last page of the electricty bill?

i had a stock loss as well...think about it. if you omit the recording of the sale, stock will remain unaffected in ur reports, however there is actually stock missing due to the sale. this means when a physical stock take is conducted, there should be a mother fucking stock loss?
Title: Re: unsure questions on exam
Post by: lalala on June 11, 2009, 04:21:43 pm
That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

are you saying that its stock loss instead?

damn.. so confusing


also what are your thoughts/answers on the BDA on last page of the electricty bill?

i had a stock loss as well...think about it. if you omit the recording of the sale, stock will remain unaffected in ur reports, however there is actually stock missing due to the sale. this means when a physical stock take is conducted, there should be a mother fucking stock loss?


yeahhh but in the  trial balance it said there was a stock gain....
but really there would have been items of stock missing from the credit sale
so stock gain is OVERstated

Argghh that question was dodgy!
Title: Re: unsure questions on exam
Post by: jarryd1112 on June 11, 2009, 04:22:58 pm
I first put the balance at $20000, but then I changed it to $0.

I thought that if it's a new business, they start out with no bank balance, because it's their first reporting period.

I'm not sure though...

Also for the omitting a credit entry question, I did cost of sales and sales. I don't understand how stock gain could be there, if the entry was omitted, then woudn't the business have no record that a sale happened, and so it wouldn't be reported in the stock cards either?

Gah I love accounting, but it's so confusing...


i had it at 0 as the bank balance was contributed in this reporting period not the last one
Title: Re: unsure questions on exam
Post by: phanphy on June 12, 2009, 12:29:10 pm
bank balance $0 yer?

not sure lol..
technically the balance of bank on the 1st of Jan was $20,000

however, it may be included in the CRJ...but not sure
Title: Re: unsure questions on exam
Post by: azr.3991 on June 12, 2009, 01:56:55 pm
pretty sure that the cash flow statement was $0 balance as at 1st of Jan

the business began on 1 jan, and i was under the impression that at the end of the reporting period (which was june 30), all the totals from all of the journals are posted to ledgers for the determination of account balances, preparation of financial reports etc etc
which means that the balance was 0, not 20,000 because as at Jan 1 even though the owner had contributed 20 grand on that day, it wouldnt have been part of the bank balance seeing that the journals hadnt been posted to ledgers yet (they were gonna be posted at June 30, the date at which we prepared the cash flow statement)

thats the way i see it

HOWEVER
if you put 20,000 in the bank balance they will probs mark you correct only IF you subtracted this amount from the total capital contributions of 33,000 (because the question said it was comprised of two capital contributions) or whatever it was.
Because if you did so, you'd end up with the correct bank balance for the start of the new reporting period (not a figure off the mark by a coupla grand)

so idk :P
Title: Re: unsure questions on exam
Post by: DLEG on June 12, 2009, 09:12:40 pm
read RLOBO's post at the bottom of page 4. ii think another 'tricky' question that hasnt been mentioned here yer was the calculation of the depreciation on the furniture for the six months (as the question asks) which you would get $750, however you had only purchased the equipment a month before therefore it was 125?

18000 - 3000 /  10   =  1500   (one year)
1500 / 12 = 125 (one month)
125 * 6 = 750

just putting it out there. i was discussing with some people from my school and they seemed to have made this error as well
Title: Re: unsure questions on exam
Post by: mtwtfss on June 12, 2009, 10:05:20 pm
read RLOBO's post at the bottom of page 4. ii think another 'tricky' question that hasnt been mentioned here yer was the calculation of the depreciation on the furniture for the six months (as the question asks) which you would get $750, however you had only purchased the equipment a month before therefore it was 125?

18000 - 3000 /  10   =  1500   (one year)
1500 / 12 = 125 (one month)
125 * 6 = 750

just putting it out there. i was discussing with some people from my school and they seemed to have made this error as well

Yeah, good question to see if people were reading the question, answer was $125 :)
Title: Re: unsure questions on exam
Post by: hesh on June 13, 2009, 10:49:51 am
hey guys
people were saying the balance for the cash flow statement was 0 as the business had only started and many wrote 20,000 and i saw a similar question in past exams and the balance was 0 when starting up a business
Title: Re: unsure questions on exam
Post by: DLEG on June 13, 2009, 04:05:30 pm
rlobo:

the vce co-ordinator and the 3/4 accounting teacher at my school read through that question and said you would record the opening bank balance as $20,000. This is because the cross reference to capital contribution in the general ledger would be bank and you post commencing entries of a business on the day they occur. Thereofre the opening bank balance in the cash flow statement is 20,000
Title: Re: unsure questions on exam
Post by: rhjc.1991 on June 13, 2009, 06:08:42 pm
pretty sure that the cash flow statement was $0 balance as at 1st of Jan

the business began on 1 jan, and i was under the impression that at the end of the reporting period (which was june 30), all the totals from all of the journals are posted to ledgers for the determination of account balances, preparation of financial reports etc etc
which means that the balance was 0, not 20,000 because as at Jan 1 even though the owner had contributed 20 grand on that day, it wouldnt have been part of the bank balance seeing that the journals hadnt been posted to ledgers yet (they were gonna be posted at June 30, the date at which we prepared the cash flow statement)

thats the way i see it

HOWEVER
if you put 20,000 in the bank balance they will probs mark you correct only IF you subtracted this amount from the total capital contributions of 33,000 (because the question said it was comprised of two capital contributions) or whatever it was.
Because if you did so, you'd end up with the correct bank balance for the start of the new reporting period (not a figure off the mark by a coupla grand)

so idk :P
hey guys
people were saying the balance for the cash flow statement was 0 as the business had only started and many wrote 20,000 and i saw a similar question in past exams and the balance was 0 when starting up a business
rlobo:

the vce co-ordinator and the 3/4 accounting teacher at my school read through that question and said you would record the opening bank balance as $20,000. This is because the cross reference to capital contribution in the general ledger would be bank and you post commencing entries of a business on the day they occur. Thereofre the opening bank balance in the cash flow statement is 20,000
Most likely, this question was used to test your understanding of journals.

All journals are posted at the END of the reporting period.

Hence, the accepted answer would be $0.
Title: Re: unsure questions on exam
Post by: sunniya on June 13, 2009, 10:46:29 pm
balance for cfs was probably 0, if u said 20,000 then u would be double counting because thats already included in capital
rent exp was 8000$
the 2 revenues were sales and stock gain
and the characterisic was reliability :)
wish i thought of like half of this in the exam!
also no one seems to hav picked up on this but in the last question where the owner took out stock back in may you had to dr, drawings and cr.stock loss not stock control as it would hav been recognised as a stock loss at the end of the rp. tripppy right? at least i thought so lol hope everyone else got that wrong as well
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 14, 2009, 01:30:13 pm
u also had to put in the furniture in the credit side of capital
Title: Re: unsure questions on exam
Post by: rhjc.1991 on June 14, 2009, 01:35:14 pm
u also had to put in the furniture in the credit side of capital
Why? The owner didn't purchase the furniture himself
Title: Re: unsure questions on exam
Post by: nbalakers24 on June 14, 2009, 01:45:46 pm
ahhhhhhh wtf lolllllllllll

wait, does the furniture cross ref with capital?
Title: Re: unsure questions on exam
Post by: rhjc.1991 on June 14, 2009, 01:51:07 pm
no it cross-ref with Bank
Title: Re: unsure questions on exam
Post by: DLEG on June 14, 2009, 02:34:59 pm
oh shiett i think i did it with capital lol
Title: Re: unsure questions on exam
Post by: TonyZ on June 14, 2009, 06:48:03 pm
for 2.1.1, i wrote computer system 30000 and accumulated depreciation of computer system 15000....
and i wrote reliability for 2.1.2...
how many marks am i going to lose....?..
Title: Re: unsure questions on exam
Post by: mtwtfss on June 14, 2009, 09:04:06 pm
for 2.1.1, i wrote computer system 30000 and accumulated depreciation of computer system 15000....
and i wrote reliability for 2.1.2...
how many marks am i going to lose....?..

1+3 = 4 i think.