ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Accounting => Topic started by: peter.g15 on September 30, 2017, 08:30:47 pm

Title: General Journal Stock Gain
Post by: peter.g15 on September 30, 2017, 08:30:47 pm
Hey guys,
I was doing a NEAP practise paper and i found that one of the questions had multiple adjustments to be made in the general journal.
It said that the owner had withdrawn $2000 of stock and this had not yet been recorded. It also gave the pre-adjustment trial balance stock control level at $240,000. It also said that the stocktake revealed a balance of $243,000.

Since I made the adjustment for the drawings, it would reduce the stock control balance to $238,000. I then made the stock gain adjustment to account for this reduction in stock control, so I put stock gain as $5000 instead of the original $3000.

However, the answers said that there was only a stock gain of $3000. Are the answers correct or am I? I'm pretty sure I've seen past VCAA exams where there was a adjustment that resulted in a change in stock gain/loss, but just looking for certain clarification!

Thanks!
Title: Re: General Journal Stock Gain
Post by: dan0038 on October 01, 2017, 12:29:17 pm
Hey,

Can you post a pic of the question? Would guess that you are right coz neap has a bunch of dumb errors in their exams (neap isn't really well known for being a good company for accounting exam questions). My advice is to don't continue doing neap exams or tssm exams coz they're trash but thats just me :)
Title: Re: General Journal Stock Gain
Post by: peter.g15 on October 01, 2017, 06:53:57 pm
Quote from: dan0038 on October 01, 2017, 12:29:17 pm
Hey,

Can you post a pic of the question? Would guess that you are right coz neap has a bunch of dumb errors in their exams (neap isn't really well known for being a good company for accounting exam questions). My advice is to don't continue doing neap exams or tssm exams coz they're trash but thats just me :)

I've actually found the exams quite okay, but these are the ones from their 'smartstudy' exam booklets (not sure if they're different from what you're talking about).
Here's a picture of the question: https://imgur.com/RIYbg8y
Hopefully it's not against forum rules, other I'll delete it and PM you.
Title: Re: General Journal Stock Gain
Post by: gamma032 on October 07, 2017, 04:59:50 pm
I'm with you on this one. A similar idea is explored in VCAA 2011 Exam 1 Q1.3.5, it got me so I suggest you take a look :)

The value in the pre-adjustment trial balance was not correct. Once we record the drawings, stock control will appear as $238,000 and so the stock gain is $5000.