VCE Accounting Question Thread!

[Maddyv11]

Hi, I was just wondering when we were supposed to split credit sales and cash sales in the income statement with net sales below them. I've seen them split with net sales below in budgeted income statements, but does that only apply if there are both credit and cash sales? What if there are only credit or only cash sales? Also what about if the question is asking you to report 'sales' (not split) and there are sales returns? Do you just write sales, then less sales returns below it with the total beside it? Or do you do sales, less sales returns, and under it net sales? This question probably looks a bit confusing but I hope I explained it well enough. Any help or opinions are appreciated! Thanks

Hi!

For the splitting of credit and cash sales, I would split the two in the income statement, and have the total of sales on the right column on the income statement.

Then I would deduct sales returns and have net sales in the right column next to the value for the sales returns.

if there is only cash or only credit sales, just put sales in there.

I hope this helps and makes sense

[DoctorTwo]

Thanks for your answer Maddy.

I was wondering about question 4 from the 2016 exam. In the question, the Cost of Sales figure is $105,500, yet in the answer it's $105,580. Where did the extra $580 come from? The only place I could think of was prepaid sales revenue but I don't see how you could have gotten $580 out of that.

Also, on the last question, Wages is $38,000 and Accrued Wages at the beginning of the RP was $750 and budgeted at the end of the RP was $890, which means that $140 was accrued over the period. Wouldn't this extra $140 add to the $38,000 in the income statement in the answer to make it $38,140? The answer is actually $37,860, which is $38,000 less the $140. The adjusting entry for accrued wages includes a debit in the wages account, doesn't it? Wouldn't this increase wages? Nevermind about this, I realised that it's a cash flow statement, not income statement!

Any help is appreciated. Thanks

[zenith101]

Which exam has everyone found the most difficult out of the VCAA post 2012 ones? Personally i feel like VCAA 2014 was pretty challenging, with the full balance sheet and cash flow statement aha.

[DoctorTwo]

2014 was definitely the hardest, considering that the A+ cutoff was significantly lower than the others. Before I did it, I had looked at some of the questions and answers before but I still performed a lot worse on the 2014 one than others. 2016 also had some difficult questions like the disposal one, and it also had some new questions like completing the memo and a 6 mark profitability question. 

[Beatifique]

Thanks for your answer Maddy.

I was wondering about question 4 from the 2016 exam. In the question, the Cost of Sales figure is $105,500, yet in the answer it's $105,580. Where did the extra $580 come from? The only place I could think of was prepaid sales revenue but I don't see how you could have gotten $580 out of that.

It's 105 000 - 670 (Sales Return) + 1250 (Prepaid Sales) = 105 580

[DoctorTwo]

It's 105 000 - 670 (Sales Return) + 1250 (Prepaid Sales) = 105 580

I just asked my teacher about this today, thanks for your answer though.
The question still confuses me though to be honest. Wouldn’t half of the the sales return already have been taken away from cost of sales? The debit to sales returns and credit to cost of sales are recorded at the same time in the general journal, so how would the sales return exist without the cost of sales? It doesn’t make sense to me, wouldn’t you just assume that it’s already been taken away from cost of sales?
Thanks.

[zenith101]

I just asked my teacher about this today, thanks for your answer though.
The question still confuses me though to be honest. Wouldn’t half of the the sales return already have been taken away from cost of sales? The debit to sales returns and credit to cost of sales are recorded at the same time in the general journal, so how would the sales return exist without the cost of sales? It doesn’t make sense to me, wouldn’t you just assume that it’s already been taken away from cost of sales?
Thanks.

Ahaha I actually remember having the exact same argument with my teacher. I reckon it was a bit unfair seeing as the Sales Returns had already been adjusted for. My teacher justified that cost of sales was exactly half of sales despite a sales return and that was the danger sign to look out for adjusting cost of sales, but I reckon it was harshly done by VCAA.

[DoctorTwo]

Ahaha I actually remember having the exact same argument with my teacher. I reckon it was a bit unfair seeing as the Sales Returns had already been adjusted for. My teacher justified that cost of sales was exactly half of sales despite a sales return and that was the danger sign to look out for adjusting cost of sales, but I reckon it was harshly done by VCAA.

Thanks for this, it makes more sense now!

[English101]

Thanks for this, it makes more sense now!

Cost of sales from pre-adjustment trial balance you need to work out the revenue and then take the cost of sales figure as it has not yet been adjusted for. Whereas, in the income statement you simply take the cost of sales figure in the report.

2014 Exam! That was a killer.

[zenith101]

Does anyone have a list of all the topics that commonly appear on the 6 marker in the accounting exams? Off the top of my head i can think of:
-straight line vs reducing balance method of dep? which method to use.
-Depreciation breaching QC and AP but satisfying others.
-Product vs Period costs and effects on Income Statement.
-Agreed value vs historical cost.
-Discuss use of control accounts and subsidiary ledgers

Anyone know of any others we should prepare for?
Cheers

[DoctorTwo]

Does anyone have a list of all the topics that commonly appear on the 6 marker in the accounting exams? Off the top of my head i can think of:
-straight line vs reducing balance method of dep? which method to use.
-Depreciation breaching QC and AP but satisfying others.
-Product vs Period costs and effects on Income Statement.
-Agreed value vs historical cost.
-Discuss use of control accounts and subsidiary ledgers

Anyone know of any others we should prepare for?
Cheers

Beside the ones you mentioned, the other 6 mark questions were:
In the 2014, 2016, and 2018 NHT exams, there were 6 mark questions about discussing profitability.
In the 2017 and 2018 Northern Hemisphere exams, there were 6 mark discuss liquidity questions.
The 2015 exam and 2017 NHT exam had 6 markers about discussing strategies to improve stock/creditors/debtors turnover.
In 2013 and 2017, there were 6 mark questions about discussing budgeted cash flow/why positive operating cash is important.

Also, just out of curiosity, were there any agreed value vs. historical cost questions on any exams? I couldn't find any

[Uncle Cassowary]

Just wondering if anyone knew if you can use different accounting principles and qualitative characteristics in exam theory questions, so long as your justification is correct?

[recess]

Is the answer for vcaa 2018 nth q2b wrong, because it was a stock gain and you’re supposed to value it at the lowest cost? Also for sales returns, do you use reverse FIFO?

[Jim_Bob]

Is the answer for vcaa 2018 nth q2b wrong, because it was a stock gain and you’re supposed to value it at the lowest cost? Also for sales returns, do you use reverse FIFO?

No, its right. You must have done it wrong

[tomatosauce]

Just wondering... does anyone do VCE Accounting via DECV? I am doing it next year and hoping someone else is too?