ATAR Notes: Forum

Archived Discussion => Business Studies => 2013 => Exam Discussion => Victoria => Accounting => Topic started by: sam.utute on November 11, 2013, 05:08:38 pm

Title: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 11, 2013, 05:08:38 pm
Hi all,

As you would have guessed, BoredSatan and I work at Connect Education, and we've have compiled a set of suggested solutions for all you super awesome Accounting kids :)

Now, please bear in mind that we've done our best, but may have made mistakes. If you have questions about any of our answers, please let us know and we'll walk you through our reasoning.

Also note that because we didn't have access to the answer book, some of our answers may not be presented in the right format.

Other than that, I hope you find them useful!

Link to solutions: Answers
Link to exam: Question Booklet

Jabbok and Sam

P.S. New record: within 3 hours of the exam finishing :)
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Damoz.G on November 11, 2013, 05:10:40 pm
I don't have Facebook, so I can't access the Answers. :(
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 11, 2013, 05:12:41 pm
I don't have Facebook, so I can't access the Answers. :(

Whaaaa????

Send me your email via PM and I'll send them to you.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Lucho23 on November 11, 2013, 05:15:35 pm
Question 8c you forgot to add in Stock Gain
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: joblues64 on November 11, 2013, 05:18:11 pm
Nicely done. One mistake is in the Cash Flow Statement of question 1. You wrote "Prepaid Insurance Expense." But as the Cash Payments journal has a specific column for "Insurance," that means it's not prepaid insurance, rather, simply an operating outflow called "Insurance Expense."
And for question 8, you've assumed that the sale had already been recorded, and that there was no adjustment for prepaid insurance. Both correct, but I think the other ways would be right as well, due to the ambiguity.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Lucho23 on November 11, 2013, 05:19:58 pm
Nicely done. One mistake is in the Cash Flow Statement of question 1. You wrote "Prepaid Insurance Expense." But as the Cash Payments journal has a specific column for "Insurance," that means it's not prepaid insurance, rather, simply an operating outflow called "Insurance Expense."
And for question 8, you've assumed that the sale had already been recorded, and that there was no adjustment for prepaid insurance. Both correct, but I think the other ways would be right as well, due to the ambiguity.

Yeah I added $5000 to Sales because of ambiguity.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 11, 2013, 05:20:31 pm
Question 8c you forgot to add in Stock Gain

Updated.

Nicely done. One mistake is in the Cash Flow Statement of question 1. You wrote "Prepaid Insurance Expense." But as the Cash Payments journal has a specific column for "Insurance," that means it's not prepaid insurance, rather, simply an operating outflow called "Insurance Expense."
And for question 8, you've assumed that the sale had already been recorded, and that there was no adjustment for prepaid insurance. Both correct, but I think the other ways would be right as well, due to the ambiguity.

Thank you! BoredSatan did it correctly and I changed it -.-

Updating as we speak.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 11, 2013, 05:21:35 pm
Question 8c you forgot to add in Stock Gain

Very nice! Gonna have to change a few figures. One sec.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: vididid on November 11, 2013, 05:22:03 pm
I don't  have Facebook either haha could someone please email it to me at [email protected]? Sorry guys xx
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 11, 2013, 05:23:37 pm
I don't  have Facebook either haha could someone please email it to me at [email protected]? Sorry guys xx

Emailing as we speak. Gimme a few minutes guys :P
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: S61778 on November 11, 2013, 05:34:00 pm
Wow 3 hrs after exam nice work guys good dedication  :P
Thanks a lot
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: DPmatt on November 11, 2013, 05:35:40 pm
Pretty sure for question 1c. the stock control account had a balance of $31,000.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Kuroyuki on November 11, 2013, 05:36:02 pm
For the question about profit and loss on disposal being depreciation adjustment.
Isn't  this not entirely true?
Because loss can also happen because  the owner wanted to get rid of the asset faster thus sold it at a lower price. Or the asset could have had unexpected damages that would cause it to be sold for less than carrying value.
This wouldn't be classified as depreciation adjustments.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Lucho23 on November 11, 2013, 05:36:57 pm
Thanks so much for the suggested answers guys!

I wonder how they'll mark on Question 3a,5b, 8a, 8b and 8d :P
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Lucho23 on November 11, 2013, 05:38:39 pm
For the question about profit and loss on disposal being depreciation adjustment.
Isn't  this not entirely true?
Because loss can also happen because  the owner wanted to get rid of the asset faster thus sold it at a lower price. Or the asset could have had unexpected damages that would cause it to be sold for less than carrying value.
This wouldn't be classified as depreciation adjustments.

I disagreed as well. The statement is fairly ignorant (not to be mean) and not true. I argued that profit/loss occurs due to inaccuracies in estimations of useful life and residual life and therefore are not explicitly depreciation adjustments.

Again, very badly worded question. I guess if you provided an explanation and justified your decision you should get the marks.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Kuroyuki on November 11, 2013, 05:41:25 pm
For the carrying value question
I said the right answer. Then I said the residual value is 3000
But then I derped and subtract the residual value from the carryng to calculate what I thought was acc dep of 6996.
So I wrote the correct answer then some incorrect bs.
How many marks would I lose 1 or 2?
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Mafioso on November 11, 2013, 05:42:35 pm
Was reliability the only accepted characteristic for the statement of account question?
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: DPmatt on November 11, 2013, 05:42:40 pm
For 3a, the delivery charges were $2100, as there were 210 units of stock in total, wouldn't that be $10 per unit, making each scooter $81?
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Kuroyuki on November 11, 2013, 05:43:03 pm
And for q5 net cash flow investing activities was actually in surplus I'm pretty sure.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Damoz.G on November 11, 2013, 05:56:36 pm
For 3a, the delivery charges were $2100, as there were 210 units of stock in total, wouldn't that be $10 per unit, making each scooter $81?

No, whenever there is more than one Unit of Stock on an invoice, it cannot be included. The other Stock Items, such as the Trail Bikes may have costed more Delivery Expense than the Delivery charges for Scooters. Therefore, its treated as a Period Cost. :)
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Uberjew on November 11, 2013, 06:17:23 pm
Can someone prove me wrong that: I counted the $2100 delivery charge as a product cost because it was $2100 for 210 total items which made sense to be $10/unit.

Often you just get a random value and its always a period cost but I just couldn't help finding a logical reason to apply it to each unit of stock - $10 a unit...

gah didn't catch the GST at the end and messed up some more stuff, looking at 88-90/100 so still good I guess...
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Kuroyuki on November 11, 2013, 06:23:05 pm
Can someone prove me wrong that: I counted the $2100 delivery charge as a product cost because it was $2100 for 210 total items which made sense to be $10/unit.

Often you just get a random value and its always a period cost but I just couldn't help finding a logical reason to apply it to each unit of stock - $10 a unit...

gah didn't catch the GST at the end and messed up some more stuff, looking at 88-90/100 so still good I guess...
it's not logical to divide it by 210 just cuz there's that many items.
Look at carpavas post above yours
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: dannynips on November 11, 2013, 06:23:21 pm
Please please please email solns to [email protected]

Thanks!!!
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 11, 2013, 06:24:17 pm
Please please please email solns to [email protected]

Thanks!!!

Emailed.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: dannynips on November 11, 2013, 06:27:22 pm
Much appreciated. Thank you!
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Uberjew on November 11, 2013, 06:37:35 pm
it's not logical to divide it by 210 just cuz there's that many items.
Look at carpavas post above yours

Yeah I posted as capravas posted so i didn't see, however i was thinking that while posting but just wanted a response...  ffs it just had to be such a perfect number!  oh well its not like i will be allowed to make that mistake again :P
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Damoz.G on November 11, 2013, 06:42:18 pm
Yeah I posted as capravas posted so i didn't see, however i was thinking that while posting but just wanted a response...  ffs it just had to be such a perfect number!  oh well its not like i will be allowed to make that mistake again :P

What perfect number - 210? I think they purposely did that because it always trips students up. =/
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: lmaoss on November 11, 2013, 08:21:48 pm
The delivery expense cannot be allocated as a product cost because it cannot be logically allocated to an individual unit of stock since it is not directly traceable to a single item of the scooter. It just gave an entire amount which may have been distributed differently to each item. More heavier objects will weigh more and may cost more delivery expense.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: yoodles on November 12, 2013, 12:56:25 am
For 3a, the delivery charges were $2100, as there were 210 units of stock in total, wouldn't that be $10 per unit, making each scooter $81?

there was a total of 210 units of stock but only 50 units of scooters, which is what the question was asking for.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: Saarah on November 12, 2013, 10:29:14 am
Could you please please please send me the answers as the link won't work. It would be greatest appreciated :)

My email is: [email protected]
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 12, 2013, 12:00:37 pm
Could you please please please send me the answers as the link won't work. It would be greatest appreciated :)

My email is: [email protected]

Done!
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: lvisevic on November 12, 2013, 01:24:02 pm
Can someone please email me solutions [email protected]
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 12, 2013, 01:29:32 pm
Can someone please email me solutions [email protected]

Done.
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: nappch681 on November 13, 2013, 11:50:31 am
sorry to be a pain, but the link isn't working for me for some unknown reason. if I could please be emailed the answers at [email protected]

would be very much appreciated
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: sam.utute on November 13, 2013, 12:05:45 pm
sorry to be a pain, but the link isn't working for me for some unknown reason. if I could please be emailed the answers at [email protected]

would be very much appreciated

Done!
Title: Re: VCAA 2013 Accounting Suggested Solutions
Post by: nappch681 on November 13, 2013, 12:13:23 pm
Done!
thank you very much  :)