VCAA 2013 Accounting Suggested Solutions

[sam.utute]

Hi all,

As you would have guessed, BoredSatan and I work at Connect Education, and we've have compiled a set of suggested solutions for all you super awesome Accounting kids

Now, please bear in mind that we've done our best, but may have made mistakes. If you have questions about any of our answers, please let us know and we'll walk you through our reasoning.

Also note that because we didn't have access to the answer book, some of our answers may not be presented in the right format.

Other than that, I hope you find them useful!

Link to solutions: Answers
Link to exam: Question Booklet

Jabbok and Sam

P.S. New record: within 3 hours of the exam finishing

[Damoz.G]

I don't have Facebook, so I can't access the Answers.

[sam.utute]

I don't have Facebook, so I can't access the Answers.

Whaaaa?

Send me your email via PM and I'll send them to you.

[Lucho23]

Question 8c you forgot to add in Stock Gain

[joblues64]

Nicely done. One mistake is in the Cash Flow Statement of question 1. You wrote "Prepaid Insurance Expense." But as the Cash Payments journal has a specific column for "Insurance," that means it's not prepaid insurance, rather, simply an operating outflow called "Insurance Expense."
And for question 8, you've assumed that the sale had already been recorded, and that there was no adjustment for prepaid insurance. Both correct, but I think the other ways would be right as well, due to the ambiguity.

[Lucho23]

Nicely done. One mistake is in the Cash Flow Statement of question 1. You wrote "Prepaid Insurance Expense." But as the Cash Payments journal has a specific column for "Insurance," that means it's not prepaid insurance, rather, simply an operating outflow called "Insurance Expense."
And for question 8, you've assumed that the sale had already been recorded, and that there was no adjustment for prepaid insurance. Both correct, but I think the other ways would be right as well, due to the ambiguity.

Yeah I added $5000 to Sales because of ambiguity.

[sam.utute]

Question 8c you forgot to add in Stock Gain

Updated.

Nicely done. One mistake is in the Cash Flow Statement of question 1. You wrote "Prepaid Insurance Expense." But as the Cash Payments journal has a specific column for "Insurance," that means it's not prepaid insurance, rather, simply an operating outflow called "Insurance Expense."
And for question 8, you've assumed that the sale had already been recorded, and that there was no adjustment for prepaid insurance. Both correct, but I think the other ways would be right as well, due to the ambiguity.

Thank you! BoredSatan did it correctly and I changed it -.-

Updating as we speak.

[sam.utute]

Question 8c you forgot to add in Stock Gain

Very nice! Gonna have to change a few figures. One sec.

[vididid]

I don't  have Facebook either haha could someone please email it to me at [email protected]? Sorry guys xx

[sam.utute]

I don't  have Facebook either haha could someone please email it to me at [email protected]? Sorry guys xx

Emailing as we speak. Gimme a few minutes guys

[S61778]

Wow 3 hrs after exam nice work guys good dedication 
Thanks a lot

[DPmatt]

Pretty sure for question 1c. the stock control account had a balance of $31,000.

[Kuroyuki]

For the question about profit and loss on disposal being depreciation adjustment.
Isn't  this not entirely true?
Because loss can also happen because  the owner wanted to get rid of the asset faster thus sold it at a lower price. Or the asset could have had unexpected damages that would cause it to be sold for less than carrying value.
This wouldn't be classified as depreciation adjustments.

[Lucho23]

Thanks so much for the suggested answers guys!

I wonder how they'll mark on Question 3a,5b, 8a, 8b and 8d

[Lucho23]

For the question about profit and loss on disposal being depreciation adjustment.
Isn't  this not entirely true?
Because loss can also happen because  the owner wanted to get rid of the asset faster thus sold it at a lower price. Or the asset could have had unexpected damages that would cause it to be sold for less than carrying value.
This wouldn't be classified as depreciation adjustments.

I disagreed as well. The statement is fairly ignorant (not to be mean) and not true. I argued that profit/loss occurs due to inaccuracies in estimations of useful life and residual life and therefore are not explicitly depreciation adjustments.

Again, very badly worded question. I guess if you provided an explanation and justified your decision you should get the marks.