the accounting 09 discussion thread

[Ilovemathsmeth]

I got $800 too.

[phanphy]

Yeh i think $800 was correct. However do you think if you, as i have listed:

Pro Junior: Right Amount
Pro Senior: Right Amount
Pro Leather: Wrong Amount (Due to incorrect Stock Write Down)

and then carried that mistake down to the General Jorunal entry, how many marks would it cost? Would consequentials apply?

you should get 2/3 for that qn. I did the same

[jay1993]

I got stock writedown of $800 due to including the import duties as a product cost, therefore increasing the unit cost to $65.
Then the NRV would have been $55 due to the subtraction of the $5 that was a cost necessary for the sale.

I don't know if that is incorrect, did anyone get the same?  

I did exactly the same

[unknown12]

Yeh that's what i thought, and if the mistake is carried through then it is not penalised again, so really its only worth one mark.
Not a bad outcome considering such a bad mistake.
I suppose that is the advantage of showing working in accounting.

[dukesofmelbourne]

yeh i got 800 too

what did ppl for for the sale and purchases return?
i ran out of lines :S

[Ilovemathsmeth]

same, did you need one extra line?

[unknown12]

I Had:

OCT 20:  Sales Returns
             GST Clearing
                   Debtors Control
                   - Name
             Stock Control
                   Cost of Sales
OCT 22: Creditors Control
            - Name
                   Stock Control
                   GST Clearing

[JadeR]

Is someone going to post their answers? I am stressing about how I went!

[dukesofmelbourne]

same
but they left one line to short so i was confused

[unknown12]

It was actually quite stupid because you couldn't group similar accounts as the transactions were on different days.

[geeza23]

exam's up guys one the first page

[phanphy]

I got stock writedown of $800 due to including the import duties as a product cost, therefore increasing the unit cost to $65.
Then the NRV would have been $55 due to the subtraction of the $5 that was a cost necessary for the sale.

I don't know if that is incorrect, did anyone get the same?  

you got the right answer but wrong working.
have to minus 7 from each customs duty.

but right answer (Y)

[andrew4443]

What did everyone say for the question about liquidity?

I said the net effect would be worse liqudity for the firm as although QAR and WCR increased (increasing liquidity) this was only marginal compared to the large increases in stock and debtors turnover (which worsens liquidity)

[boogabrain4]

yes same andrew...even though WCR increased a lot, QAR didn't, and DTO and STO were dramatically worse, so that means that the reason WCR is a lot better is cos of all the Debtors and Stock that they have (which they aren't able to turn into cash) which is listed as Current Assets, so i said it didn't improve

[unknown12]

I said that debtors turnover and stock turnover are more to do with the firm's efficiecny asnd are not direcltly linked with the liquidity of the business like working capital ration and quick asset ratio. then blah blah blah.

Aslong as my theory is ok, i'd say around 85-88/90 depending on consequentials