Exam Discussion!

[Toto.]

I found the exam long and tedious, but not particularly difficult.

The only question which I know everyone had trouble with/ noone got the same answer was for the first question with the commencing entry... I personally didn't include bank or loan in the entry, but I'm not sure what the figures were supposed to be.
What did everyone get for the commencing entry?

[sam.utute]

Pretty sure bank wouldn't go in it. It would appear in the Cash Receipts Journal.

[Toto.]

that's what I thought too... but then what happens with the loan? would that appear in the General Journal?
i'd assume not then...
I had bank and loan included until the final minute when i just frantically rubbed it out and rewrote it all :/
i dunno. confused, that question really confused me!

[sam.utute]

If the loan appears in the Cash Receipts journal, you will debit bank and credit loan when posting from that journal.

[Nima2703]

When commencing a double-entry system. EVERYTHING is done through the general journal. Even bank and GST, unfortunately I didn't include creditors control or the subsidiary creditor and got a debit capital

[Nima2703]

Could somebody please tell me if they updated discount revenue for the income statement i did 1400 i thought i shouldnt because its a correction but at the time i didnt see discount revenue in the trial balance only after so i quickly put it in (( it shouldve been 1400+990?

[mooimachicken]

1440 - 990

[sam.utute]

When commencing a double-entry system. EVERYTHING is done through the general journal. Even bank and GST, unfortunately I didn't include creditors control or the subsidiary creditor and got a debit capital

Correct, but needs to be qualified. It depends on what type of commencement it is. I'm up to Question 4. I can see how people struggled to finish. Question 1b) was just ridiculous.

[Nima2703]

Because it is an existing single entry commencing double entry thats why everything is included such as gst because they need to be debited and credited for the double entry system which is why gst is debited in the sample paper. question 4 paiad i got 6000 i think and 4800 incurred please tell me im correct

[Toto.]

Well, Ramon just started his business, so I don't think it is an existing single entry commencing double entry.
and like the commencing entry is putting in the existing assets, liabilities and owner's equity in.... but I think the bank and loan don't count as a part of it? so you end up with stock 15000, computer system 3000, creditors control 4000, creditor (subsidiary) 4000, and capital 14000? it was only 4 marks... so I assumed 4 items....?

[sam.utute]

Because it is an existing single entry commencing double entry thats why everything is included such as gst because they need to be debited and credited for the double entry system which is why gst is debited in the sample paper. question 4 paiad i got 6000 i think and 4800 incurred please tell me im correct

The business started paying in Feb 2011. It wanted you to calculate from July 1 2011 to June 30 2012.

[Nima2703]

Because it is an existing single entry commencing double entry thats why everything is included such as gst because they need to be debited and credited for the double entry system which is why gst is debited in the sample paper. question 4 paiad i got 6000 i think and 4800 incurred please tell me im correct

The business started paying in Feb 2011. It wanted you to calculate from July 1 2011 to June 30 2012.

omfg youre joking..i thought it was february 2011 to june 2011 omfg im so stupid im so stupid that means i got the entire theory question wrong too oh my god no

[_avO]

Because it is an existing single entry commencing double entry thats why everything is included such as gst because they need to be debited and credited for the double entry system which is why gst is debited in the sample paper. question 4 paiad i got 6000 i think and 4800 incurred please tell me im correct

I think you didn't read the question properly. It asks for calculation of advertising paid/expense for the year ended June 2012. This means you have to calculate 12 months of payments and expenses.
It's only 2 marks so this one should have been easy.
Cash Paid of $1200 for July 1 2011 to Aug 30 2011 = $1200*2 = $2400
Cash Paid of $1440 ($1200*1.2) for September 1 2011 to June 30 2012 = $1440*10 = $14400
Add them up and you'll get $16800

For Advertising expense, don't let the payment date confuse you it's just the date that they prepaid for the month ahead (eg paid $1440 on 20 Feb 2012 for a months worth of advertising between 1 March 2012 to 31 March 2012), so you don't need to factor in 20/30 days or whatever.
For July, August and September, you will incur $1200 advertising expense each month, and $1440 for every month after that
$1200*3 + $1440*9 = $16560

[sam.utute]

^ Had the same figures as _avO

[Toto.]

yeah so did i