VCAA Unit 4 2012 Suggested Solutions

[sam.utute]

Here they are:

http://www.connecteducation.com.au/acc-answers.html



Sam and BoredSaint

Let me know if you have any questions/find any mistakes.

[liamlizza1]

The depreciation of equipment in the income statement appears to be wrong...
happy to be corrected if i'm wrong

[tinks0795]

for 1b) it has a table with
                           Increase/ Decrease/ No effect                 Amount
Revenues
Expenses
Net Profit

I got:
                           Increase/ Decrease/ No effect                               Amount
Revenues                Decrease (sales returns-negative revenue)         500
Expenses                Decrease                                                            250
Net Profit                decrease                                                            250

[tinks0795]

The depreciation of equipment in the income statement appears to be wrong...
happy to be corrected if i'm wrong

I agree, I go $19000

[liamlizza1]

In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.

[sam.utute]

The depreciation of equipment in the income statement appears to be wrong...
happy to be corrected if i'm wrong

I agree, I go $19000

Yep, Depreciation needs to be fixed. Good pick up.

[tinks0795]

In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.

I agree!

I really hope these solutions are right.... because then I would get 89/90, even the discuss questions I mentioned everything the same!

[liamlizza1]

Everything else seems to be fine, thanks Sam.

[sam.utute]

In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.

I agree!

I really hope these solutions are right.... because then I would get 89/90, even the discuss questions I mentioned everything the same!

That would be an amazing score!!! Congrats! Hopefully VCAA agree with us

[tinks0795]

In question 8, the tractor was purchased for 61000 + 6100 GST, therefore the entry on the credit side should be 67100.

I agree!

I really hope these solutions are right.... because then I would get 89/90, even the discuss questions I mentioned everything the same!

That would be an amazing score!!! Congrats! Hopefully VCAA agree with us

for 1b) it has a table with
                           Increase/ Decrease/ No effect                 Amount
Revenues
Expenses
Net Profit

I got:
                           Increase/ Decrease/ No effect                               Amount
Revenues                Decrease (sales returns-negative revenue)         500
Expenses                Decrease                                                            250
Net Profit                decrease                                                            250

thoughts about that??

[abcdqd]

i also wrote revenue decrease 500, expense decrease 250, NP decrease 250

[liamlizza1]

Yep, all good in my books tinks

[sam.utute]

i also wrote revenue decrease 500, expense decrease 250, NP decrease 250

Hm... We do classify Sales Return as negative (or contra) revenue. I'd have probably put Rev decrease 500 etc., put a star next to it, and written a paragraph explaining why I'm right

Sorry, I didn't know what format the answer book had so I had a guess at what it might have been like.

[tinks0795]

i also wrote revenue decrease 500, expense decrease 250, NP decrease 250

Hm... We do classify Sales Return as negative (or contra) revenue. I'd have probably put Rev decrease 500 etc., put a star next to it, and written a paragraph explaining why I'm right

Sorry, I didn't know what format the answer book had so I had a guess at what it might have been like.

completely understandable! just really have to hope VCAA can be genuine people haha

[mattjarrett]

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?