tricky questions just wanting some clarrification

[mc]

1. What did people do for the discount revenue question? Was a bit confused as it said the effect on the balance sheet, and not just the one transaction involving the payment. I did increase assets in bank, no effect on liabilities coz in the balance sheet the creditors amount is the same (although made up of the discount revenue), and oe's increase.

2. What did people do with the drawings on the last page? I did it to stock control still because the trial balance was pre-adjusted so stock loss shouldnt have necessarily been determined yet. Also it said the trial balance was only an extract, so there would have been a stock control account somewhere.

3. The opening balance of the cash flow? People said 0, but what about the $20000? Wasnt this in the receipts journal for jan 1 so shouldnt it be the opening balance for that period (6 months ending 30 June).

[nbalakers24]

1. decrease liablities (creditors) discount revenue make sthe firm pay less to creditors, therefore increases OE, no affect on assets.

2. drawings 1100 and stock control 1100

3. i had 20000 as well, alot of people is saying 0.


idk if they are right.

[phanphy]

1. disc rev = reduction in inflows of econ. benefit that decr. liab (creditors control) and incr o/e (net profit)

2. Drawings
       Stock Control
3. $20000 <-- not 100% sure

[mc]

yer i think 0 in the cfs is right

people rekon you had to make the adjustment for drawings with stock loss, but i think stock control is right.

With the reve question i get were your coming from, but the question said the effect on the balance sheet. So i may have looked into it too much but having no revenue, then including revenue at the end of the period the balance sheet would have bank increase because you wouldnt have to pay as much.  The amount of creditors control in the balance sheet doesnt change, the total creditors which is the liability is still that intial amount. Oe obviously increases. Just one way to look at it.

What would the best kid in the state be getting, any 100% you rekon?

[werdna]

Ummm i think its
Drawings
      Stock Loss
because there was a stock loss account in the extract of the Trial Balance
yeah i stuffed that one up
any1 got that right?

[mc]

yer but its pre-adjustment, so the stock control account needs to be fixed.

[werdna]

i hope you are right coz that's what I put but every1 else is saying stock loss

[mtwtfss]

Cant really reduce liabilities in a balance sheet cnsidering it was gnna be paid anyway.

I think it increases bank, and increase wners equity, n0 effect 0n liabilities

culd be wrng.

srry abut the keybard

[DLEG]

waht the fuck..0 in the cfs bewilders my belief..how did anyone get that?

[gossipqueen]

waht the fuck..0 in the cfs bewilders my belief..how did anyone get that?

I put zero because the business contributed the $20000 during the period, they didn't have a bank balance when they started, so the business started off with nothing. I have no clue what the actual answer is though...

=)

[DLEG]

hmm i can see how that is possible :| however this makes me feel a bit more confident lol :

'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'

rlobo mentioned thati n another thread

[sunniya]

- discount revenue is decrease liabilities, increase OE
-you had to debit drawings cr.stock loss , i hav no idea how ppl thought of doing that, i left it out all together thinking it was a trick as it would hav been recognised as stock loss at the end of the rp, so i didnt recordd it at all (N)
-opening balance was prob 0, but i wrote 20,000 so im hoping that arguement in that last comment is correct. but then again if you put 20,000 ur double counting as u record capital for 30,000 and the 20,000 would be included in that 30,000

[DLEG]

yeh FUCK IT!! its only one mark..i think ive lost about 10 so far..lol. hopefuly i get teh A+