How did you find the exam?

[sam.utute]

how is discount revenue 2390?

1400+990 (due to incorrectly debiting, to reverse this, you have to credit it.

would you loose marks if you didnt total the special journals?

From memory, I don't think you were required to total the journals.

Oh yea thanks Sam i will be seeing you at your next lecture in unit 4 

Awesome Hopefully we'll have a blast! Now that we know what the next exam will be like, I'm trying to come up with a test designed to increase speed

[abcdqdxD]

With the question 3 e)
It asks what effect would not recording memo 9 on the income statement. Stock loss would be pcerstated which means it would effect adjusted gross profit, but advertising was understated so net profit is not effected. Do you think there is a mark for mentioning the adjusted gross profit?

Its no effect.. the loss of stock would be found in the stocktake..

SAME QUESTION AS LAST YEAR GUYS..

That's what I thought when I saw it in the exam. Nailed that one!

[DiMennzzaa]

hey sam what do you reckon the cut-off for an A will be? out of 90?

[Toto.]

oh damn! I originally wrote down no effect, but then I was like: surely vcaa would not make us think that the firm has lost 50 items of stock, so then I changed it to profit overstated! nooooooooooo damn! otherwise i'm pretty happy with everything!

[sam.utute]

hey sam what do you reckon the cut-off for an A will be? out of 90?

Around 73 would be my guess. The questions weren't too hard, but with the harsh timing, it made the exam quite tough overall.

oh damn! I originally wrote down no effect, but then I was like: surely vcaa would not make us think that the firm has lost 50 items of stock, so then I changed it to profit overstated! nooooooooooo damn! otherwise i'm pretty happy with everything!

Oh bummer! Glad you're happy with it though! Congrats

[fmlexams]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer aswell, thoughts?

[abcdqdxD]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

[StumbleBum]

doesn't memo 9 cause net profit to be overstated by $540?
you've given stock to local shopkeepers as a promotion which means $540 of stock is used for advertising expense
omitting this would mean that you haven't recorded the $540 of advertising expense, causing expenses to be understated, and thus net profit to be overstated?

also where can i find the exam answers from?

The lower value of stock would have been picked up by the physical stocktake though and therefore accounted for meaning the overall effect was zero.

Also teh answers have been linked by sam.utute and they are on about pagge7-8 i think?

[sam.utute]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

[fmlexams]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

yeah i see, well i think conservatism makes sense, also the question related to why businesses adopt the fifo method, this question was very broad "businesses", so i gave the reason as it may be physically impossible to label some stock items, and gave an example of petrol, thoughts?

[liamlizza1]

I still believe in question 3e), you have to mention how adjusted gross profit would be understated, and net profit no effect. Anyone see where im coming from?

[Pa007]

In regards to the first question about the commencing entries, I thought that that question was quite odd. I believe that both stock and creditors were not meant to be control accounts for two reasons.

Firstly the question did not specify that the business used control accounts and secondly, there was not enough room to include two entries for the creditors. However that was my take on the question...

[sam.utute]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

yeah i see, well i think conservatism makes sense, also the question related to why businesses adopt the fifo method, this question was very broad "businesses", so i gave the reason as it may be physically impossible to label some stock items, and gave an example of petrol, thoughts?

Yep, that sounds great! Good example as well

I still believe in question 3e), you have to mention how adjusted gross profit would be understated, and net profit no effect. Anyone see where im coming from?

It would be best to mention the effect on Net Profit, Stock Loss, Advertising, and Adjusted Gross Profit. Though I don't think VCAA will be too strict and require you to go into that much detail.

[sam.utute]

In regards to the first question about the commencing entries, I thought that that question was quite odd. I believe that both stock and creditors were not meant to be control accounts for two reasons.

Firstly the question did not specify that the business used control accounts and secondly, there was not enough room to include two entries for the creditors. However that was my take on the question...

That puts the cat amongst the pigeons
Very interesting. I've never seen it before in a VCAA exam.

[abcdqdxD]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

yeah i see, well i think conservatism makes sense, also the question related to why businesses adopt the fifo method, this question was very broad "businesses", so i gave the reason as it may be physically impossible to label some stock items, and gave an example of petrol, thoughts?

The question was not why businesses use FIFO. The question was why is it necessary to allocate the cost of stock I believe (from memory). If not.. I lose 2-3 marks