VCE Accounting Question Thread!

[andyzpipe]

yeah id listen to matt

[MaddehZ]

hahahha andyzzzpipe

[nacho]

for  2010 vcaa
and how is cash receipts calculated? in the first question, for bank ledger.
and i swear that their GST value is incorrect?
Shouldnt it be 3700?
3500 for stock, and then the 200 for the rent?


Thanks

also
for the stock card on 2.1.1
would we be penalised if we recorded memo29 on 30 june?
I didnt put an inflow or outflow, i just put the same balance.
i mean, if they didnt want us to put it there, why would they provide the date for us, and an extra line?

[tazza]

I have several questions.
Q1 - Explain how the Going Concern principle will affect the reporting of Office Equipment in the Balance Sheet.

Answer - Going concern assumes the business will continue into future reporting periods. As the asset Office Equipment will earn revenue over those future reporting periods it must be depreciated each year that it remains with the business.

My answer - The business is expected to have an indefinite life span, and as office equipment is expected to provide a future economic benefit into future reporting periods longer than a year away, it is recorded as a non-current asset.

I've given a completely different answer, but is mine still right?

Q2 - Explain, with reference to an accounting principle, why it is necessary to charge depreciation on the motor vehicle.
My answer...
Reporting period – all revenues earned should be matched with expenses incurred for the one reporting period. Because the vehicle is used to help generate revenue throughout the reporting period, the expense ‘consumed’ by the asset must be matched so that an accurate profit figure can be determined.

I'm not sure if I've answered it right here, is there any way I could word it better?

Q3 - Explain why it is necessary to balance accounts at the end of the reporting period.

Answer - as the life of the business is assumed to be ongoing, the assets, liabilities and owner's equity accounts are balanced as they are expected to generate future economic benefits (assets) and comprimise future obligations for the business in future reporting periods.

My answer - Assets, liabilities and owner’s equity accounts need to be balanced so that the totals can be used to produce reports such as the Balance Sheet.

Completely different answer again,but is mine still kind of right?

Q4 - Explain, with reference to a qualitative characteristic, one benefit of using a control account and subsidiary ledgers for creditors.

Answer - relevance...removes bulky detail and is more useful for decision making blah blah blah

My answer  - reliability...the creditors control accounts allow for a summary of all the transactions involving creditors, whereas the subsidiary ledgers allow all the transactions of the individual creditors to be posted individually. They satisfy reliability because they act as a cross checking mechanism, where the accuracy of accounting reports can be verified.

Once again, are there two answers to this question?

And finally, if there is a question that asks something and then says "in the recording process", is this different to if it asked a question and said "in the accounting reports", for example "explain how source documents improve the reliability of information in accounting report" compared to "explain the role of source documents in the recording process".


 

[ech_93]

@ nacho, they are yet to pay rent for January, so the GST is not included (i think thats what it is?). And for 2.1.1 my teacher penalised me for putting in memo. 29

annnd, @ anyone who has done neap 2011 practice exam, how did they calculate cash at bank for 1.1.1? It doesn't make sense
It says "During January 2011, Jessica opened a business bank account in the name of Rae’s Camping and deposited $45 000 cash. At this time she also transferred ownership of her personal Vehicle, purchased in 2009 for $47 000 (plus $4 700 GST), which has an agreed value of $32 000, to the business. Jessica borrowed $18 000 to purchase the Vehicle and currently owes $12 000 to ZNA Finance which the business will take over, paying $500 per month.

Jessica agreed to purchase the stock of an existing business, which had an agreed value of $42 000
plus $4 200 GST as of 29 January 2011. The stock was paid for on 1 February 2011 – Cheque No.001. On 31 January 2011 the business arranged a $10 000 overdraft with the bank. The business commenced trading on 1 February 2011." -- Then you have to do a balance sheet as at 1 Feb...

In the answers it says there is a bank overdraft of $1200. But i don't understand
D:

[nacho]

@ nacho, they are yet to pay rent for January, so the GST is not included (i think thats what it is?). And for 2.1.1 my teacher penalised me for putting in memo. 29

annnd, @ anyone who has done neap 2011 practice exam, how did they calculate cash at bank for 1.1.1? It doesn't make sense
It says "During January 2011, Jessica opened a business bank account in the name of Rae’s Camping and deposited $45 000 cash. At this time she also transferred ownership of her personal Vehicle, purchased in 2009 for $47 000 (plus $4 700 GST), which has an agreed value of $32 000, to the business. Jessica borrowed $18 000 to purchase the Vehicle and currently owes $12 000 to ZNA Finance which the business will take over, paying $500 per month.

Jessica agreed to purchase the stock of an existing business, which had an agreed value of $42 000
plus $4 200 GST as of 29 January 2011. The stock was paid for on 1 February 2011 – Cheque No.001. On 31 January 2011 the business arranged a $10 000 overdraft with the bank. The business commenced trading on 1 February 2011." -- Then you have to do a balance sheet as at 1 Feb...

In the answers it says there is a bank overdraft of $1200. But i don't understand
D:

can you upload neap 2011? I have no 2011 exams.
ive only done 6 exams for accounting fml.
not that i need that much more practice..but i should have fkn done more.. i made the A+ cutoff once for one of vcaas previous, but only got an A for last years..
damn

[ech_93]

Insight, neap and vcta 2011 can be found here : http://vce.atarnotes.com/forum/index.php/topic,42007.0.html

Let me know if you find how to work out the bank in 1.1.1
or anyone else who works it out...

edit: for the 2011 neap 1.1.1 question if i ignore it saying "On 31 January 2011 the business arranged a $10 000 overdraft with the bank." then i can work out the 1200 overdraft. What does that even mean that it 'arranged' that overdraft?

[urikolo]

For the bank balance, the owner has contributed $45000 cash, then it says that the business has purchased stock valued at $42000 plus $4200 GST.

So you have: 45000-42000-4200= -1200
That's the bank balance as at feb 1

[nacho]

oh wow.. GRAHHHH
anyway,
back to my vcaa question
see it doesnt even matter if they havent paid for it yet, because it has been INCURRED.
get what im saying?

[ech_93]

For the bank balance, the owner has contributed $45000 cash, then it says that the business has purchased stock valued at $42000 plus $4200 GST.

So you have: 45000-42000-4200= -1200
That's the bank balance as at feb 1

Yeah, thats what i'm thinking now too. thanks. But when it says " On 31 January 2011 the business arranged a $10 000 overdraft with the bank." that confuses me?
What does that mean?

edit: @ nacho. I get what you're saying, but i still don't think it effects GST. You only have cash payments of GST and cash reciepts of GST, and what you are owed on credit/what you owe on credit. And ATO stuff. So, where would the rent GST fit in? ... I'm not sure if what I'm saying is right (or if it makes sense), but thats what I was thinking when i was doing that question?

[urikolo]

Yeah, that information is not really useful, I think that they are hinting that the bank balance will be an overdraft.

[_avO]

For the bank balance, the owner has contributed $45000 cash, then it says that the business has purchased stock valued at $42000 plus $4200 GST.

So you have: 45000-42000-4200= -1200
That's the bank balance as at feb 1

Yeah, thats what i'm thinking now too. thanks. But when it says " On 31 January 2011 the business arranged a $10 000 overdraft with the bank." that confuses me?
What does that mean?

Arranging an overdraft of 10,000 means that the business can be in overdraft up until $10,000 before they incur any interest expenses to the amount owing (could be 5% interest or 20% interest etc. depending on the contract)

[ech_93]

Thankyou _avO that makes sense now !

[MaddehZ]

accounting brahs,

At the end of the reporting period (30th of June 2010), a memo was found that had not been recorded

The details of the memo are as follows:

On 23 June 2010, owner contributed vehicle to the business

Record this in the General Journal

What date would I use to record this? 23rd or 30th ?

[BoredSatan]

30th. cause they found the memo on the 30th