Your questions answered.

[mojomojo]

what is a stock mix? This is the first time i've seen that word, my teacher didn't mention anything about it :/

[inspire]

what is a stock mix? This is the first time i've seen that word, my teacher didn't mention anything about it :/

stock mix is just multiple stock lines
eg you have 10 different brands of clothing

stock cards help identify a good stock mix as they can be used to see fast and slow moving stock lines and thus take corrective action in adjusting etc etc etc etc

[mojomojo]

Anyone know how to work out the answer for question 2.21 for NEAP 2010?

"One 1 November 2009 the insurance was paid in advance for the year ending 31 October 2010."

*and the general journal shows Prepaid Insurance Expense of 2000 +  the balance day is on 30 June 2010

Don't i just divide the 2000 into 12 months and then multiple it by 8 months (Nov1-June31)?

[Akirus]

Anyone know how to work out the answer for question 2.21 for NEAP 2010?

"One 1 November 2009 the insurance was paid in advance for the year ending 31 October 2010."

*and the general journal shows Prepaid Insurance Expense of 2000 +  the balance day is on 30 June 2010

Don't i just divide the 2000 into 12 months and then multiple it by 8 months (Nov1-June31)?

This question has been asked multiple times in the past few days, have a look around.

[Yitzi_K]

from Tssm 2008 question 2.1

Annual Insurance of 1500(plus 150 gst) was paid in advanced 1 July 2009

The pre-adjusted trail balance shows prepaid insurance as DR: 1375

and its calculating the expense for the quarter ending 30 september 2009

i dont get it ><

because of the 1500 you paid on 1 july, 125 of it was for july, so that 125 wasn't prepaid insurance, it was just insurance expense. so only 1375 went into prepaid insurance. Hence, the BDA for 30 september would only be for august and september, as july is already accounted for.

That's my interpretation of it anyway.

[inspire]

from Tssm 2008 question 2.1

Annual Insurance of 1500(plus 150 gst) was paid in advanced 1 July 2009

The pre-adjusted trail balance shows prepaid insurance as DR: 1375

and its calculating the expense for the quarter ending 30 september 2009

i dont get it ><

because of the 1500 you paid on 1 july, 125 of it was for july, so that 125 wasn't prepaid insurance, it was just insurance expense. so only 1375 went into prepaid insurance. Hence, the BDA for 30 september would only be for august and september, as july is already accounted for.

That's my interpretation of it anyway.

Hmmm yeah i put insurance expense as 250 too but the answer says 375

This is what i did i thought that they will have 1125 remaining (1500/12 X 9)

therefore 1375 - 1125 = 250

but then for some reason the trial balance states 1375 as prepaid insurance so calculating it that way doesnt work?

i would need to do it as 1500/12 = 125
and i have used 3 months which is 375 as insurance expense?

[naved_s9994]

In the Cash flow statement, when we record GST settlement to the ATO, do we write just GST Clearing? what about capital contribution?
And in the Balance for a bank overdraft, do we write bank or bank overdraft in the current liability section?

I've seen so many different versions

In the cash flow statement, for GST refunds, you write GST refund. Same for settlement. However, in the cash journals, it is "GST Clearing", recorded in the sundries column. Straight from Vicki Baron herself, apparently.

And what Chavi said: it's always bank, as that is the name of the account.

From What I know, I agree with that.
I confirmed through checking textbook, lecture notes/my brain....

In CFS youre allowed to specifiy paid/settlement, received/refund etc.
ANYWHERE ELSE, its going to be GST CLEARING!

[Albeno69]

I did the 2008 vcaa exam and question 1.2.2 stumbled me,
there debit entire in the creditors control is different to my answer and not sure how they got 96900?

[LFTM]

I did the 2008 vcaa exam and question 1.2.2 stumbled me,
there debit entire in the creditors control is different to my answer and not sure how they got 96900?

They took the entire creditors column from the cash payments journal.What did you get?

[naved_s9994]

GST Clearing account has debit balance of 600
So this means its a current asset right?

So in justification of this would you say, GST paid or incurred is greater the GST received or earnt?

2marks, so I and D

[mumakai]

in the 2009 examiners report it says "relevance is not the answer to every question"
So im thinking what sought of questions can they ask for understandability and comparability?

[naved_s9994]

in the 2009 examiners report it says "relevance is not the answer to every question"
So im thinking what sought of questions can they ask for understandability and comparability?

GUESS?
Its blatantly obvious.... In REPORTS?
The comparibility, classification etc

[LFTM]

GST Clearing account has debit balance of 600
So this means its a current asset right?

So in justification of this would you say, GST paid or incurred is greater the GST received or earnt?

2marks, so I and D

i did this in a sac and lost marks. Teacher said to be more specific.
The business has paid and been charged more GST by suppliers than it has received or charged to customers.
is it ok that i said OR?

[LFTM]

in the 2009 examiners report it says "relevance is not the answer to every question"
So im thinking what sought of questions can they ask for understandability and comparability?

For the understandability characteristic, the key word to look for is classify.
For example why classify the balance sheet? makes it easier for people with little accounting knowledge to understand the position of the business.

[inspire]

the effect of bad debt on profit and cash?