Mistakes I found - VCAA end of year 2010

[mojomojo]

Why do you need to put credit sales into a general journal? Don't you put them at sales journal?

Yeah but they didn't provide a sales journal and the question was 5 marks, so i didn't know what else to do

Yeah.. a pretty weird question. 5 marks with a general journal... with no cost price provided.

[_avO]

There were 5 entries so I wasn't really confused at the time, but now that I look over it, yeah 5 marks is a little much, maybe they will make it 3 and forgo the Stock part of the transaction?

[Robbinyohood]

or maybe they'll give us full marks for that question like in the mid years, but anyway, what did you guys end up doing in the general journal?

[_avO]

Did something like..
Prepaid sales revenue      400
   Sales                               400
Debtors Control              5100
Debtor- Motel Vegas       5100
   Sales                               4600
   GST Clearing                      500

[Robbinyohood]

Did something like..
Prepaid sales revenue      400
   Sales                               400
Debtors Control              5100
Debtor- Motel Vegas       5100
   Sales                               4600
   GST Clearing                      500

sweet haha thats exactly what i had

[_avO]

Hmm now that I read over what I just wrote, I think I did 5000 for sales.. gah the stupidity it doesn't even balance

[Robbinyohood]

Hmm now that I read over what I just wrote, I think I did 5000 for sales.. gah the stupidity it doesn't even balance

bad luck man its only one mark, and besides, maybe the entire state will get full marks on it because it was a bit vague

[Chavi]

Did something like..
Prepaid sales revenue      400
   Sales                               400
Debtors Control              5100
Debtor- Motel Vegas       5100
   Sales                               4600
   GST Clearing                      500

I did this in a trial exam (splitting the same account in one transaction e.g. Sales Rev) and my teacher warned me against it. Not sure if you'll lost marks because it was a dodgy question, but I don't think Sales can be split.

[edenr]

true, i tried to identify cost of sales, spent a good 5 minutes trying to find it...The first thing i did was go back to the start of the question to identify the mark-up. unfortunately we had to find the cost of sales through account reconstruction so there was no means of identifying the cost price which is ridiculous. The only other way (i thought of this but didn't do it due to lack of time) was to divide the total sales against the cost of sales to determine a mark-up (i haven't done it i assumed you would get a weird percentage). I went against this due there being limited space in the general journal...but then again it is possible to include the debtors control/individual on the same line, leaving 2 spaces left for stock control/cost of sales.

Edit
Reconstructed accounts again to determine cost of sales
I believe it is 66700

Total sales is 190000

190000/66700 * 100
=284.644%

To be honest i doubt that is the mark-up....lucky i didn't waste my time. and i missed out on 1 mark cuz i didnt finish.

[Robbinyohood]

true, i tried to identify cost of sales, spent a good 5 minutes trying to find it...The first thing i did was go back to the start of the question to identify the mark-up. unfortunately we had to find the cost of sales through account reconstruction so there was no means of identifying the cost price which is ridiculous. The only other way (i thought of this but didn't do it due to lack of time) was to divide the total sales against the cost of sales to determine a mark-up (i haven't done it i assumed you would get a weird percentage). I went against this due there being limited space in the general journal...but then again it is possible to include the debtors control/individual on the same line, leaving 2 spaces left for stock control/cost of sales.

I get what you mean, but there is no way of knowing the mark up on the particular line of stock, there wasn't enough information given to determine cost of sales. Unless they use the same mark up for all lines of stock, but that should have been pointed out to us if it were expected from us. :S

[edenr]

true, i tried to identify cost of sales, spent a good 5 minutes trying to find it...The first thing i did was go back to the start of the question to identify the mark-up. unfortunately we had to find the cost of sales through account reconstruction so there was no means of identifying the cost price which is ridiculous. The only other way (i thought of this but didn't do it due to lack of time) was to divide the total sales against the cost of sales to determine a mark-up (i haven't done it i assumed you would get a weird percentage). I went against this due there being limited space in the general journal...but then again it is possible to include the debtors control/individual on the same line, leaving 2 spaces left for stock control/cost of sales.

I get what you mean, but there is no way of knowing the mark up on the particular line of stock, there wasn't enough information given to determine cost of sales. Unless they use the same mark up for all lines of stock, but that should have been pointed out to us if it were expected from us. :S

yeh i just edited straight after. if you see my post again there is no way that is going to be an appropriate mark-up. I have also done many ludicrous prac exams, namely cse 2010 where you had to reconstruct the stock ctrl accnt. If you did this you know what i mean, they ASSUME that the missing figure is a Stock Loss, when it couldv'e been anything stock write down/advertising etc. I only did 7 prac exams but i believe after a certain point the improvement is very minimal. Some questions you could not have prepared for, e.g. last question.

[Hellhole]

As Prepaid Sales is expended, it automatically gets transfered to CURRENT Sales, so therefore the account is not split - though I do see the merit (imagine what the ledger would look like; it would have Prepaid Sales Rev and Debtors Control seperate - so it may be correct). That is as far as I was taught, anyway.

My last question looked like this (in previous exams a similar question was asked, and they accepted two different ways - but they allude me; by dividing total sales by cost of sales to get a general mark-up):

Prepaid Sales Revenue DR 400
Debtors Control DR 5100
Debtor - Motel Vegas SubDR 5100
Sales Revenue CR 5000
GST Clearing CR 500

Cost of Sales DR 2002 (Or something around there)
Stock Control CR 2002

The question was not vague at all. Had to be read correctly and years ago, they accepted the journal without cost of sales or stock control entries because of the same lack of information given in this one.

[eeps]

The last question was annoying.

There is no way that anyone could work out the mark-up on the stock (as many have pointed out) - I think that everyone in the state would either be awarded full marks for that question or the value of the question may be reduced to 3 or 4 marks, as opposed to the 5 marks.

[mojomojo]

The last question was annoying.

There is no way that anyone could work out the mark-up on the stock (as many have pointed out) - I think that everyone in the state would either be awarded full marks for that question or the value of the question may be reduced to 3 or 4 marks, as opposed to the 5 marks.

I think the "real" answer for the last question is just Prepaid Revenue and the Revenue... but the 5 marks confused many students.

[eeps]

I think the "real" answer for the last question is just Prepaid Revenue and the Revenue... but the 5 marks confused many students.

The "real" answer will be known when the Assessor's Report comes out. =P

I agree the 5 marks given to the question confused students. But hey, nothing can be done about it now.