VCAA Unit 4 2012 Suggested Solutions

[crimmo]

yeh question 8 for the purchase of the tractor on the credit side of the sundry creditor t account, you left out the gst clearing, so it should be 67,100 cross referenced to tractor/ gst clearing yes?

[sam.utute]

yeh question 8 for the purchase of the tractor on the credit side of the sundry creditor t account, you left out the gst clearing, so it should be 67,100 cross referenced to tractor/ gst clearing yes?

Yep! The two things we missed:
1. Depreciation
2. The GST on the tractor.

I've updated the solutions but they haven't been re-uploaded. I think Lex has fallen asleep, so they'll probably be updated tomorrow morning.

[tinks0795]

for question 11b, regarding the possible consequence for a business that is experiencing a decline in its liquidity, does anyone think that my answer, that it means business will have more trouble meeting debts as they fall due and thus paying creditors on time leading to decreased discount revenue which is a sign of worsened profitability, would grab the two marks?

I think for two marks is that you'd have to provide something like how to deal with it... like arranging overdraft facility etc, I dunno, you might get 2 marks it just doesn't seem completely right to me...

[thetimeis]

Were you required to balance the accounts in Question 8?
I dont think complete means to balance does it?

[Tragesty]

Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course! 

Thanks again!

[Nima2703]

Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course! 

Thanks again!

What was your score and mid year score and what SS did you need?

[abcdqdxD]

2c: i think you will lose a mark because there are 3 marks, 1 mark for effect on A, L and OE. You didn't explain why assets decreased (stock control) but I'd still give you the mark

[BoredSatan]

LOL seems we missed a few things

My excuse: I was tired.

[sam.utute]

Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course! 

Thanks again!

Hm.... Sundries would be correct assuming that Lyall's Imports trades in stock that does not include Leather Chairs.
The information doesn't provide us with any indication of what Lyall's actually sells. To me, it seems inconclusive.

I can see the argument for Sundries - the may just be buying the chairs for their office etc.
However, I don't think we've been given enough information to draw that conclusion. I hate it when they don't give us enough information

2c would depend on how the answer booklet template was set up. Usually, you always mention the effect on OE. This would be a requirement if they had given you the three row template (Increase/Decrease/No Effect table). It's usually always better to err on the side of caution and include it. I'm not sure how they'll assess it.

P.S. if you only lost 6 marks, that's still pretty damn good mate!

[shmootz]

Could someone explain how you got $19000 for depreciation expense in the budgeted income statement? I think I got $19800 from memory.

Thanks.

[tinks0795]

Could someone explain how you got $19000 for depreciation expense in the budgeted income statement? I think I got $19800 from memory.

Thanks.

$18000 for the pre-existing equipment for the year, then you get the $20000 new equipment purchases *0.15 = $3000, then from there divide by 12 to get monthly= $250, then 4 months have passed on it so $1000
therefore, depreciation of equipment= $18000+$1000= $19000

[thetimeis]

Yeah complete means balance.

Thanks for the solutions guys really appreciate it, just a couple things:

1C you put the amount in the creditors control column. Do you reckon there's any possibility it may have been 'sundries'? I put creditors control too but some people are saying sundries which is a fair point.

2C: I said assets decrease by 450 (1), creditors control decreases liabilities by 485 (2) and GST clearing increases liabilities by 45, leading to an overall decrease in liabilities by 440 (3) - however I didn't mention no effect on owners equity, would I lose a mark?

Looks like atleast 6 marks off for me -_- Well there goes any hope I had of getting into my desired course! 

Thanks again!

Just went through checking past exams and complete doesn't mean balancing, balancing is always asked for specifically. I also dont think 6 marks will be that bad an effort for this exam, surely an A+, what on earth course are you aiming to get into?

[shmootz]

Could someone explain how you got $19000 for depreciation expense in the budgeted income statement? I think I got $19800 from memory.

Thanks.

$18000 for the pre-existing equipment for the year, then you get the $20000 new equipment purchases *0.15 = $3000, then from there divide by 12 to get monthly= $250, then 4 months have passed on it so $1000
therefore, depreciation of equipment= $18000+$1000= $19000

Thank you. Sounds like what I did... maybe I did get $19000, I don't really remember.

[bafron]

for question 4 in the CRJ do you add the jun 28 receipt because io didnt because it says they report monthly

[tinks0795]

for question 4 in the CRJ do you add the jun 28 receipt because io didnt because it says they report monthly

No, its because the question says prepare the journal entries for the above transactions, with June 28 being one of the above transactions.