Account Reconstructions - My General Ledger Templates

[Damoz.G]

Hello Everyone,

As we are all studying for the Accounting Exam on Monday, I thought I'd share with you something that helped me. I made some blank Ledger Templates for the main 4 Accounts that commonly need to be reconstructed (Debtors Control, Stock Control, Creditors Control and GST Clearing).

All you have to do is print out some copies of them (However many you need to commit all Entries to memory), and then just fill it in without using your Notes or the answers and also time yourself to see how quickly you can do them. If you commit them to memory and can do them quickly, it will be very easy for you on Monday during the Exam to just simply fill in the figures, and you're done. No need to think about where everything goes.

IMPORTANT - PLEASE NOTE: You don't need to write the stuff in brackets. In the Answers, the bits in the brackets are just to tell you where the figure comes from or what its for, so don't write the brackets out as well. There are more entries for some of them, but these are the main ones. Also take note of the Arrows and "OR" - This is because you can only only have one or the other, but not both. e.g. You can't have a Stock Gain and Stock Loss - Its one of the two only, not both. 

If you have any Questions about it, feel free to ask. Happy to answer any Past Exam Questions as well.

Good Luck!

Damoz.

[shooterblitz]

You Sir, are a legend!

EDIT: Would you have the same templates for Depreciation of NCA's, Accumulate Depreciation of NCA's (the same I told you on the other thread I needed to focus on for the exam )

[Damoz.G]

You Sir, are a legend!

EDIT: Would you have the same templates for Depreciation of NCA's, Accumulate Depreciation of NCA's (the same I told you on the other thread I needed to focus on for the exam )

HAHA! Thanks mate.

Ermmm....no I don't, sorry. There aren't a lot of Transactions that go into those Ledger Accounts so I didn't make Templates for those Accounts. =/ Is there something specific about them that you need help with?   

[jhon9728]

I was going to open a thread for this but I'll just ask you here.
How do I know whether to put GST Clearing with the Sales in the Debtors Control reconstruction.
I always add it as 10% of the Sales, yet as I am doing practice exams it seems that some include this value and others leave it just at Sales.

So do they accept both? is there some part of the questions which will tell me to include or not?
thanks
(VCAA exam 2, 2008 is an example of this in the account reconstruction, does not include GST)

[Damoz.G]

I was going to open a thread for this but I'll just ask you here.
How do I know whether to put GST Clearing with the Sales in the Debtors Control reconstruction.
I always add it as 10% of the Sales, yet as I am doing practice exams it seems that some include this value and others leave it just at Sales.

So do they accept both? is there some part of the questions which will tell me to include or not?
thanks
(VCAA exam 2, 2008 is an example of this in the account reconstruction, does not include GST)

VCAA only introduced GST for Budgeting and Account Reconstructions as of 2011 onwards. Prior to 2010 inclusive, GST was not recorded for Budgets and Account Reconstructions. So for 2008 and stuff, don't worry about the GST.

So you are correct to add 10% GST (and you have to on our Exam on Monday if a question came up), but don't worry about it for older papers before 2011.

Hope this helps!

[jhon9728]

Thanks, that basically clarifies the whole thing. Now I just need to work on accrued revenue/expenses, they always cause trouble with me as I try work out what has been earned for what months, and not others.
I don't know if you can help with specific examples, but with ones such as :

On 11 October 2007 the business paid $3 960 (including $360 GST) to renew the annual insurance policy due to expire on 31 October 2007 (Chq. 1245). The payment was correctly recorded in the Prepaid Insurance account. On 30 June 2008, before any adjusting entries, the balance in the Prepaid Insurance account was $4 720.
Prepare the necessary General Journal entries to record the balance day adjustment. (relating to insurance for the year ending 30 June 2008)

The interest/accrued expense was recorded at $3520 in the answers, but I cannot see how this was obtained, and the average for this exam was 1.4/4, so i guess I am not the only one.

[lmaoss]

Thanks, that basically clarifies the whole thing. Now I just need to work on accrued revenue/expenses, they always cause trouble with me as I try work out what has been earned for what months, and not others.
I don't know if you can help with specific examples, but with ones such as :

On 11 October 2007 the business paid $3 960 (including $360 GST) to renew the annual insurance policy due to expire on 31 October 2007 (Chq. 1245). The payment was correctly recorded in the Prepaid Insurance account. On 30 June 2008, before any adjusting entries, the balance in the Prepaid Insurance account was $4 720.
Prepare the necessary General Journal entries to record the balance day adjustment. (relating to insurance for the year ending 30 June 2008)

The interest/accrued expense was recorded at $3520 in the answers, but I cannot see how this was obtained, and the average for this exam was 1.4/4, so i guess I am not the only one.

So at June 30 2007, there was a remainder balance of 4720 - 3600  = 1120
On October 30 2007, there was a payment of 3600 so it increased to 4720
So the total expense would be the amount between June 2007 to October 2007 (1120) and the new amount between October 2007 to June 2008 which is calculated as so:
3600 is an annual payment. So divide that by 12 which is 300 expensed per month. Between October and June there are 8 months so that amount would be 2400.
So the total amount is 2400 + 1120 = 3520

[Damoz.G]

Thanks, that basically clarifies the whole thing. Now I just need to work on accrued revenue/expenses, they always cause trouble with me as I try work out what has been earned for what months, and not others.
I don't know if you can help with specific examples, but with ones such as :

On 11 October 2007 the business paid $3 960 (including $360 GST) to renew the annual insurance policy due to expire on 31 October 2007 (Chq. 1245). The payment was correctly recorded in the Prepaid Insurance account. On 30 June 2008, before any adjusting entries, the balance in the Prepaid Insurance account was $4 720.
Prepare the necessary General Journal entries to record the balance day adjustment. (relating to insurance for the year ending 30 June 2008)

The interest/accrued expense was recorded at $3520 in the answers, but I cannot see how this was obtained, and the average for this exam was 1.4/4, so i guess I am not the only one.

Okay from July 1 to October 31, the balance would have been $1,120. So this whole Expense has been consumed.
Then November 1 to June 30: 8 months consumed. (3600/12) x 9 months is $2,400

$1,120+$2,400=$3,520

It helps to draw up a timeline.

EDIT: Beaten

[huss48]

Good stuff there Damoz, I have also attached a template for financial reports - cash flow, income statement and balance sheet and ratios to remember.

[Damoz.G]

Good stuff there Damoz, I have also attached a template for financial reports - cash flow, income statement and balance sheet and ratios to remember.

Thanks, huss.

Those two documents are very useful to remember where everything goes and the formatting of each report as well. Awesome job!

[TimmyC]

Many thanks!

Very much appreciate the work you put in on this forum, it doesn't go unnoticed!!   

[bibsa]

After thinking I knew nothing on reconstruction, I think I did well only forgot a couple in the GST.
Does it Matter on the order of the entries. Your answers are pretty similar to the Cambridge Book and I'm wondering if i will be penalized on this??

Thank you 

[Damoz.G]

After thinking I knew nothing on reconstruction, I think I did well only forgot a couple in the GST.
Does it Matter on the order of the entries. Your answers are pretty similar to the Cambridge Book and I'm wondering if i will be penalized on this??

Thank you 

On tomorrow's exam, if and when a Reconstruction does come up, it doesn't matter what order you put the items in just as long as everything is in there and the figure required to be found is clearly stated.

However, for the GST Clearing account to be safe, you should put the GST Settlement/GST Refund first to show that it occurs at the start of the Reporting Period. But I've been told that you shouldn't get penalised if you don't do this either - The main thing is to just make sure all Entries are in the Ledger and that the required figure is correct.

[abcdqdxD]

However, for the GST Clearing account to be safe, you should put the GST Settlement/GST Refund first to show that it occurs at the start of the Reporting Period. But I've been told that you shouldn't get penalised if you don't do this either - The main thing is to just make sure all Entries are in the Ledger and that the required figure is correct.

I'm pretty sure you must do this or you may risk losing marks depending on the assessor

[Damoz.G]

I'm pretty sure you must do this or you may risk losing marks depending on the assessor

Really? I've been told that the order doesn't matter for Reconstructions and that it only matters for the posting of Journals to the General Ledger Accounts.

As I said before, to be on the safe side, put in the GST Settlement or GST Refund to avoid losing the mark for it. But the order of the rest of the Entries doesn't matter, do they? As long as the Opening and Closing Balances are in the correct positions and the accounts are totalled.