Last Year's Exam

[costargh]

Thats the thing thats pissed me off with preparation for the mid year. There has been SO MANY mistakes in prac exams, exam busters etc that it makes it soo hard to stay focused and use your time properly. Like it ruins your train of thought and you dont feel as confident in urself beause the book says ur wrong even though ur right!

[elaine]

my goodness, i can't tell you the amount of times i've had to ask my teacher whether it's me that's wrong or the book.

it's just frustrating that they can't even get their act together lol.

[costargh]

i know. seriously. if theres a mistake in this years VCAA exam (or what I see to be a mistake) im just gonna skip the question and go on.... and at the end come back 2 it cause if we worry 2 much about a mistake we will run outta time tto finish... (we mite actually be wrong and there is no error in the exam and we wasted all our time!!!)

[sheepz]

1.3.1 ( Prepaid Adverstigng)

Your right.  I actuaally worked out that 5 months had been consuemd but i got the figures mixed up. Balance should be 1500 and Advertising expense should be 7500.

lol sorry guys to bring this up after so long but i just did the sample paper... shouldn't it be the other way round? (which means costa's first answer was right?) because they said that the advertising will START on june so the advertising expense consumed is just 1 month? that said, i put $7500 as my advertising expense the first time round >.< did so many careless mistakes!

1.3.1

                                   Prepaid Advertising
Feb 1 Bank 9000                                           June 30 Advertising expense 1500
                                                                  June 30   Balance 7500
              9000                                                             9000

shouldn't the entry for bank be June 30 as the dates should all be the start/end of the reporting period?

[costargh]

Hey sheepz. Yeh ur right! (and my original answer was right LOL)

Um im unsure... I thought you would put the Bank at the time they paid for the current asset...


EDIT
Sheepz is right. Should read as such

                                   Prepaid Advertising
June 30 Bank 9000                                           June 30 Advertising expense 1500
                                                                  June 30   Balance 7500
              9000                                                             9000

[sheepz]

haha thx for clearing that up! omg so many mistakes in the solutions of all the prac exams!! im afraid that i dun even pick up my own mistakes because the solution is wrong >.< btw does any one have the rewritten 2003 answer booklet and solutions? i only have the question booklet...

[costargh]

I only for the question book too.
I think somethign was wrong with the files on the VCTA site or something

[elaine]

1.3.1 ( Prepaid Adverstigng)

Your right.  I actuaally worked out that 5 months had been consuemd but i got the figures mixed up. Balance should be 1500 and Advertising expense should be 7500.

lol sorry guys to bring this up after so long but i just did the sample paper... shouldn't it be the other way round? (which means costa's first answer was right?) because they said that the advertising will START on june so the advertising expense consumed is just 1 month? that said, i put $7500 as my advertising expense the first time round >.< did so many careless mistakes!

ohhh whoops my bad, thanks

Hey sheepz. Yeh ur right! (and my original answer was right LOL)

Um im unsure... I thought you would put the Bank at the time they paid for the current asset...


EDIT
Sheepz is right. Should read as such

                                   Prepaid Advertising
June 30 Bank 9000                                           June 30 Advertising expense 1500
                                                                  June 30   Balance 7500
              9000                                                             9000

i don't get why the balance has to be recorded at the end of period date. i'm confused

oh yeah, i also don't have solutions or an answer book for the 2003 one.

[ben4386]

hey guys got some answers for the theory if you want to discuss it, its theory that seperates people in the exam,

While recording transactions during January, Fiona noticed that Interest Revenue and Commission Revenue
were recorded in two separate General Ledger accounts. In the future Fiona has decided to combine these
two accounts and record both in an account called ‘Other revenue’.
Identify and explain the accounting principle breached by recording the two revenue items in one
account.

Consistency Principle

The Same accounting methods should be applied from one reporting period to the next. By combining the titles commission revenue and interest revenue into the title "other revenue" Fiona is changing the way she records and posts revenues, thereby changing her accounting methods.


Explain, using a Qualitative Characteristic to support your answer, why it is necessary to make
balance day adjustments.

Relevance:  Reports should contain all information that is useful for decision making. By making balance day adjustments we are calculating and including revenues earned and expenses incurred in the current reporting period. This information ensures an accurate profit figure can be determined so it can assist the owner in decision making (for example it facilitates the use of financial indicators such as net profit ratio)

[elaine]

hey guys got some answers for the theory if you want to discuss it, its theory that seperates people in the exam,

While recording transactions during January, Fiona noticed that Interest Revenue and Commission Revenue
were recorded in two separate General Ledger accounts. In the future Fiona has decided to combine these
two accounts and record both in an account called ‘Other revenue’.
Identify and explain the accounting principle breached by recording the two revenue items in one
account.

Consistency Principle

The Same accounting methods should be applied from one reporting period to the next. By combining the titles commission revenue and interest revenue into the title "other revenue" Fiona is changing the way she records and posts revenues, thereby changing her accounting methods.


Explain, using a Qualitative Characteristic to support your answer, why it is necessary to make
balance day adjustments.

Relevance:  Reports should contain all information that is useful for decision making. By making balance day adjustments we are calculating and including revenues earned and expenses incurred in the current reporting period. This information ensures an accurate profit figure can be determined so it can assist the owner in decision making (for example it facilitates the use of financial indicators such as net profit ratio)

do we have enough lines to write that kind of answer for question 2?
 in my experience, i've run out of lines for almost every single theory question lol. and i can't bring myself to answer in dot points, it's too unnatural (after several years of english training me to write in full sentences)

(btw brilliant answering)

[sheepz]

i don't get why the balance has to be recorded at the end of period date. i'm confused

[/quote

the ledger account only has dates that are the start and end of the reporting period... so since this occurred during the middle of the reporting period, we will only record it at the end (june 30). hopefully thats clear enough lol

n yeah ben those answers look good!

[elaine]

i don't get why the balance has to be recorded at the end of period date. i'm confused

[/quote

the ledger account only has dates that are the start and end of the reporting period... so since this occurred during the middle of the reporting period, we will only record it at the end (june 30). hopefully thats clear enough lol

n yeah ben those answers look good!

ohh yeap get it now, thanks