unsure questions on exam

[mc]

bank balance $0 yer?

[DLEG]

That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

are you saying that its stock loss instead?

damn.. so confusing


also what are your thoughts/answers on the BDA on last page of the electricty bill?

i had a stock loss as well...think about it. if you omit the recording of the sale, stock will remain unaffected in ur reports, however there is actually stock missing due to the sale. this means when a physical stock take is conducted, there should be a mother fucking stock loss?

[lalala]

That Credit Sale question confused me the most.

I put credit sales and cost of sales down however for could not think of the third.

Looking back over I don't see how the stock gain could be part of that question.

If a transaction was not recorded and the stock was taken that would be a stock loss.
If a transaction was recorded and the stock was not taken that would be a stock gain.

What these VCAA people think of.

are you saying that its stock loss instead?

damn.. so confusing


also what are your thoughts/answers on the BDA on last page of the electricty bill?

i had a stock loss as well...think about it. if you omit the recording of the sale, stock will remain unaffected in ur reports, however there is actually stock missing due to the sale. this means when a physical stock take is conducted, there should be a mother fucking stock loss?

yeahhh but in the  trial balance it said there was a stock gain....
but really there would have been items of stock missing from the credit sale
so stock gain is OVERstated

Argghh that question was dodgy!

[jarryd1112]

I first put the balance at $20000, but then I changed it to $0.

I thought that if it's a new business, they start out with no bank balance, because it's their first reporting period.

I'm not sure though...

Also for the omitting a credit entry question, I did cost of sales and sales. I don't understand how stock gain could be there, if the entry was omitted, then woudn't the business have no record that a sale happened, and so it wouldn't be reported in the stock cards either?

Gah I love accounting, but it's so confusing...

i had it at 0 as the bank balance was contributed in this reporting period not the last one

[phanphy]

bank balance $0 yer?

not sure lol..
technically the balance of bank on the 1st of Jan was $20,000

however, it may be included in the CRJ...but not sure

[azr.3991]

pretty sure that the cash flow statement was $0 balance as at 1st of Jan

the business began on 1 jan, and i was under the impression that at the end of the reporting period (which was june 30), all the totals from all of the journals are posted to ledgers for the determination of account balances, preparation of financial reports etc etc
which means that the balance was 0, not 20,000 because as at Jan 1 even though the owner had contributed 20 grand on that day, it wouldnt have been part of the bank balance seeing that the journals hadnt been posted to ledgers yet (they were gonna be posted at June 30, the date at which we prepared the cash flow statement)

thats the way i see it

HOWEVER
if you put 20,000 in the bank balance they will probs mark you correct only IF you subtracted this amount from the total capital contributions of 33,000 (because the question said it was comprised of two capital contributions) or whatever it was.
Because if you did so, you'd end up with the correct bank balance for the start of the new reporting period (not a figure off the mark by a coupla grand)

so idk

[DLEG]

read RLOBO's post at the bottom of page 4. ii think another 'tricky' question that hasnt been mentioned here yer was the calculation of the depreciation on the furniture for the six months (as the question asks) which you would get $750, however you had only purchased the equipment a month before therefore it was 125?

18000 - 3000 /  10   =  1500   (one year)
1500 / 12 = 125 (one month)
125 * 6 = 750

just putting it out there. i was discussing with some people from my school and they seemed to have made this error as well

[mtwtfss]

read RLOBO's post at the bottom of page 4. ii think another 'tricky' question that hasnt been mentioned here yer was the calculation of the depreciation on the furniture for the six months (as the question asks) which you would get $750, however you had only purchased the equipment a month before therefore it was 125?

18000 - 3000 /  10   =  1500   (one year)
1500 / 12 = 125 (one month)
125 * 6 = 750

just putting it out there. i was discussing with some people from my school and they seemed to have made this error as well

Yeah, good question to see if people were reading the question, answer was $125

[hesh]

hey guys
people were saying the balance for the cash flow statement was 0 as the business had only started and many wrote 20,000 and i saw a similar question in past exams and the balance was 0 when starting up a business

[DLEG]

rlobo:

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

[rhjc.1991]

pretty sure that the cash flow statement was $0 balance as at 1st of Jan

the business began on 1 jan, and i was under the impression that at the end of the reporting period (which was june 30), all the totals from all of the journals are posted to ledgers for the determination of account balances, preparation of financial reports etc etc
which means that the balance was 0, not 20,000 because as at Jan 1 even though the owner had contributed 20 grand on that day, it wouldnt have been part of the bank balance seeing that the journals hadnt been posted to ledgers yet (they were gonna be posted at June 30, the date at which we prepared the cash flow statement)

thats the way i see it

HOWEVER
if you put 20,000 in the bank balance they will probs mark you correct only IF you subtracted this amount from the total capital contributions of 33,000 (because the question said it was comprised of two capital contributions) or whatever it was.
Because if you did so, you'd end up with the correct bank balance for the start of the new reporting period (not a figure off the mark by a coupla grand)

so idk

hey guys
people were saying the balance for the cash flow statement was 0 as the business had only started and many wrote 20,000 and i saw a similar question in past exams and the balance was 0 when starting up a business

rlobo:

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

Most likely, this question was used to test your understanding of journals.

All journals are posted at the END of the reporting period.

Hence, the accepted answer would be $0.

[sunniya]

balance for cfs was probably 0, if u said 20,000 then u would be double counting because thats already included in capital
rent exp was 8000$
the 2 revenues were sales and stock gain
and the characterisic was reliability
wish i thought of like half of this in the exam!
also no one seems to hav picked up on this but in the last question where the owner took out stock back in may you had to dr, drawings and cr.stock loss not stock control as it would hav been recognised as a stock loss at the end of the rp. tripppy right? at least i thought so lol hope everyone else got that wrong as well

[nbalakers24]

u also had to put in the furniture in the credit side of capital

[rhjc.1991]

u also had to put in the furniture in the credit side of capital

Why? The owner didn't purchase the furniture himself

[nbalakers24]

ahhhhhhh wtf lolllllllllll

wait, does the furniture cross ref with capital?