Your questions answered.

[LFTM]

Can someone tell me what i need to know about the statement of account, teacher hardly went through it at all.

[cleo_xo]

um the question about the NEAP 2.2.4 the answer is because it says in the additional information that the balance of the accrued wages account at the start of the reporting period at 1 jan is 700 and then at the end it was 600. We assume he had paid of the 700 simply because wages do not tend to take a very long time to be paid of (the employees want their money) and that it is a small amount means he is able to pay it off. Therefore only 600 remains owing at the end as the 700 has been (assumed) paid off.

i hope that this is the kind of logic one would involve. someone please tell me if i am wrong thanks

okay thanks that makes sense, do you think the VCAA will expect us to make a similar assumption?

[Buharrr]

Can someone tell me what i need to know about the statement of account, teacher hardly went through it at all.

know the reasons for using it.

and try to learn how to make one from given information like subsidiary ledgers. you never know but 2010 could be the year to make one on Tuesday this week.

[Buharrr]

um the question about the NEAP 2.2.4 the answer is because it says in the additional information that the balance of the accrued wages account at the start of the reporting period at 1 jan is 700 and then at the end it was 600. We assume he had paid of the 700 simply because wages do not tend to take a very long time to be paid of (the employees want their money) and that it is a small amount means he is able to pay it off. Therefore only 600 remains owing at the end as the 700 has been (assumed) paid off.

i hope that this is the kind of logic one would involve. someone please tell me if i am wrong thanks

okay thanks that makes sense, do you think the VCAA will expect us to make a similar assumption?

umm i would probably assume so in the worst case scenario.
but they should provide information about what to do in some way or another. dont quote me on it but i think we might just have to.

[Chavi]

Term deposit - Current Asset or Non Current Asset?

[Buharrr]

quote author=Chavi link=topic=26386.msg267603#msg267603 date=1275811664]
Term deposit - Current Asset or Non Current Asset?

[/quote]

depends one how long it has been locked in for and how long before it matures
i would generally put it as a NCA.

[Albeno69]

i think this is an important question about a business wanting to make a profit but are experiencing sever cash shortages. could some one supply a good answer to this because i can seem to get one that will get me fully marks.

What's the question?

a business made a profit but is experiencing cash shortages.

[mojomojo]

I've seen a lot of different narration, some are really short and some are quite long.

What kind of narrations would be the most appropriate to use for Stock Gain/ Loss, Correcting Entries, Depreciation, Prepaid, Accrued, Drawings of Asset, Closing Entries etc.

[LFTM]

i think this is an important question about a business wanting to make a profit but are experiencing sever cash shortages. could some one supply a good answer to this because i can seem to get one that will get me fully marks.

What's the question?

a business made a profit but is experiencing cash shortages.

Under accrual accounting there is a difference between revenue earned and received and expenses paid and incurred. Cash and profit are therefore different resources.
examples can include
drawings
purchase of NCA
credit sales greater than receipts from debtors
prepaid expenses paid but not incurred yet.

[Buharrr]

I've seen a lot of different narration, some are really short and some are quite long.

What kind of narrations would be the most appropriate to use for Stock Gain/ Loss, Correcting Entries, Depreciation, Prepaid, Accrued, Drawings of Asset, Closing Entries etc.

Out of the one's you have mentioned, remember for stock loss or gain ALWAYS include the specific line of stock loss or gained, amount of stock in units loss or gained and then the memo. this is what our teacher has told us.

For Depreciation include the following to be on the safe side: period of depreciation, depreciation rate (p.a.), straight line method, item you are depreciation and the memo.

For the rest you can vary ur responses but for depreciation and stock loss or gain my teacher has told me to be quite detailed but short in the narration.

[Chavi]

Term deposit - Current Asset or Non Current Asset?

depends one how long it has been locked in for and how long before it matures
i would generally put it as a NCA.

If the term deposit expires within 12 months or after 12 months?

[Buharrr]

i think this is an important question about a business wanting to make a profit but are experiencing sever cash shortages. could some one supply a good answer to this because i can seem to get one that will get me fully marks.

remember to include (if you want to) how cash and profit are calculated. this depends on the constraints in the question that might be specifically to do with gross profit, or net cash flow from operations, etc. this will enhance your response to hopefully be awarded full marks.

What's the question?

a business made a profit but is experiencing cash shortages.

Under accrual accounting there is a difference between revenue earned and received and expenses paid and incurred. Cash and profit are therefore different resources.
examples can include
drawings
purchase of NCA
credit sales greater than receipts from debtors
prepaid expenses paid but not incurred yet.

[Buharrr]

Term deposit - Current Asset or Non Current Asset?

depends one how long it has been locked in for and how long before it matures
i would generally put it as a NCA.

If the term deposit expires within 12 months or after 12 months?

if expires within 12 months then it will be turned into cash within 12 months and thus CA.
if expires beyond 12 months then NCA

[LFTM]

I've seen a lot of different narration, some are really short and some are quite long.

What kind of narrations would be the most appropriate to use for Stock Gain/ Loss, Correcting Entries, Depreciation, Prepaid, Accrued, Drawings of Asset, Closing Entries etc.

i doubt we would have to do narrations.

Out of the one's you have mentioned, remember for stock loss or gain ALWAYS include the specific line of stock loss or gained, amount of stock in units loss or gained and then the memo. this is what our teacher has told us.

For Depreciation include the following to be on the safe side: period of depreciation, depreciation rate (p.a.), straight line method, item you are depreciation and the memo.

For the rest you can vary ur responses but for depreciation and stock loss or gain my teacher has told me to be quite detailed but short in the narration.

doubt they'll ask for narrations

[LFTM]

Can someone explain 1.7 in last years exam. Why is stock gain understated