VCE Accounting Question Thread!

[splash.of.colour]

thankyou ANILBALA and Somye, you guys are so helpful

[ANILBALA]

VCAA 2009
1.7 A credit sale that occurred in June has not been recorded.
Required
State the effect of this omission on the Profit and Loss Statement.

Why is stock gain understated? Wouldn't it be logical for it to be overstated.
Everything else seems pretty obvious. Cost of sales and Credit sales understated.

Cheers guys

[jaketownley]

stock gain is understated because according to your records, you've lost stock. (which has actually been sold)

Say the sale had a cost of sales figure of $100, the omission of this transaction would mean that;
A stock loss of $100 would have been recorded which would decrease the amount of stock gain by $100, making it understated

[splash.of.colour]

VCAA 2010 paper - 1.3.1

The interest on the loan is 9% per annum, payable at 31st of December each year. Loan principle figure is $50 000. Prepare the necessary adjustments at 30 June 2010.

General journal entry:
interest expense: DR 1875
accrued interest: CR 1875

how did they get $1875? the answers say that it was 5 months accrued, but i keep working it out to be 6 months accrued (january - june)?

thanks in advance

[Tragesty]

While business commenced 1 Jan, we didn't take out the loan until 31st Jan. Be careful with the dates! They can get you.

[splash.of.colour]

Oh true!!! thankyou! yes those details always get me ugh

[splash.of.colour]

im a tad confused with the following in relation to the study design...

1. Changes to GST: will they still identify if gst has been included/ not included? or they wont mention gst at all and we have to remember to include it?

2. posting to general ledgers in terms of months instead of reporting periods

thanks again

[jaketownley]

im a tad confused with the following in relation to the study design...

1. Changes to GST: will they still identify if gst has been included/ not included? or they wont mention gst at all and we have to remember to include it?

2. posting to general ledgers in terms of months instead of reporting periods

thanks again

had a similar discussion in class with my teacher! what they're saying about the gst is pretty much what you're saying. students will be expected to work out gst without being prompted.
transactions that DONT include gst are: wages, drawings, interest expense/revenue, gst settlement,capital contribution, loan repayment, loan received, payments to creditors (as its already included from the credit purchase) and receipts from debtors (same applies for payments to creditors)

as for the posting journals, they'll give you a journal thats has the totals from three separate months. i.e
Date      Details   Rec No.   Bank    Discount Rev   Debtors Control
1-31 Jan Totals                 43,000                         18000
1-28 Feb Totals                 37,000   500                12000
1-31 Mar Totals                 50,000                         24000 

Then you have to post them to the one ledger using separate entries

                               Debtors Control
Date  Cross Ref    $         Date    Cross Ref                         $
1/1    Balance     15,000   31/1    Bank                             18000
                                      28/2    Bank/ discount revenue  12000
                                      31/3    Bank                             24000

^(didnt include the credit sales but i hope you get the point)
i hope that clears a bit up splash.of.colour!

[Nima2703]

Hi all, i was wondering if someones could help me with the following two questions:

1.  on 21 September 2011, the business paid $3300 (including $300 GST) to renew the annual insurance policy due to expire on 30 September 2011 (chq. 538). The payment was correctly recorded in the Prepaid insurance account. On June 30 2012, before any adjusting entries, the balance of the Prepaid insurance was $3720. Prepare the necessary journal entries to record the balance day adjustment for the year ending 30 June 2012 
- the answers have debited insurance expense by $2970, and credited the profit/loss summary
- i understand the credit and debits, just not how they got to that figure 

2. Discuss how using the FIFO method of stock recoring will impactGross Profit suring a period when cost prices of stock are falling i got the first part of the answer right, but the next part confused me. They said:
- if a set $ amount or fixed % is added to cost price, then as cost price falls, selling price will also fall. This means the margins will remain unchanged and the $ figure of gross profit per unit will fall
- if the business maintains a set selling price regardless of cost price then as cost falls the margin on sales will increase, leading to higher gross profit

so if someone could explain that, that would be really helpfull haha

sorry for all the questions :/

Okay, the balance on 30 June of 2012 was $3720. On the 21st of September an annual insurance policy was renewed for 31st of September for $3000 plus $300 GST. Only the $3000 is relevant as it is the prepaid expense. Because it is renewed for 31st of September, is starts on 1st of October. Because the balance at June is 3720. We need to deduct is by 3000 to see how much prepaid rent expired BEFORE 31st of September which was still in the reporting period. Assuming that it is the same insurance, $250 is used per month, therefore the reporting period begins on 1st of July, so it was used for July, August, and September. $250x3 is $750. If you deduct the balance by how much was paid in 21st of September to renew it becomes $3720-3000= $720. This means that $720 has been used up before the insurance was renewed but has not been adjusted due to the reporting period being one year. So, the amount expensed is now $720. We know that $3000/12 is $250 so each month $250 is used. This was renewed on 31st of September therefore it is initiated on 1st of October. This means that it will be used for October, November, December, January, February, March, April, May, and finally June due to the reporting period ending on the last day of the month. So 9 months was used with the insurance renewed, thus 9x250=$2250. We also figured that the remainder of the balance has been used up previously, which was $720. Hence, the amount totally used up would be $720+$2250 which is $2970.
Hope that helped

[VCEcupcakes]

just wondering, how much theory will there approximately be, compared to previous years exams?

[sam.utute]

just wondering, how much theory will there approximately be, compared to previous years exams?

Previous years' the split was about 70% practical, 30% theory. This year, I would be guessing at least 40% theory, if not more.

[abcdqdxD]

just wondering, how much theory will there approximately be, compared to previous years exams?

Previous years' the split was about 70% practical, 30% theory. This year, I would be guessing at least 40% theory, if not more.

Perhaps there will be less theory questions, however each question is allocated more marks?

Strong emphasis on theory will definitely lower the A+ cutoff imo. Most people place more emphasis on prac than on theory.

Sample exam was ~38% theory, however Simon Phelan is predicting about 30 marks will be on theory (33%).

Going to be very important to nail the prac quickly to maximise time spent on answering theory questions.

[Nima2703]

im a tad confused with the following in relation to the study design...

1. Changes to GST: will they still identify if gst has been included/ not included? or they wont mention gst at all and we have to remember to include it?

2. posting to general ledgers in terms of months instead of reporting periods

thanks again

had a similar discussion in class with my teacher! what they're saying about the gst is pretty much what you're saying. students will be expected to work out gst without being prompted.
transactions that DONT include gst are: wages, drawings, interest expense/revenue, gst settlement,capital contribution, loan repayment, loan received, payments to creditors (as its already included from the credit purchase) and receipts from debtors (same applies for payments to creditors)

as for the posting journals, they'll give you a journal thats has the totals from three separate months. i.e
Date      Details   Rec No.   Bank    Discount Rev   Debtors Control
1-31 Jan Totals                 43,000                         18000
1-28 Feb Totals                 37,000   500                12000
1-31 Mar Totals                 50,000                         24000 

Then you have to post them to the one ledger using separate entries

                               Debtors Control
Date  Cross Ref    $         Date    Cross Ref                         $
1/1    Balance     15,000   31/1    Bank                             18000
                                      28/2    Bank/ discount revenue  12000
                                      31/3    Bank                             24000

^(didnt include the credit sales but i hope you get the point)
i hope that clears a bit up splash.of.colour!

Do we have to record each month's information in every ledger? will we be told to do so in the question?

[jaketownley]

Yeah I think we have to! I'm sure they'd only ask us to do it in relation to one ledger for each exercise and it shouldn't be for any more than three months.

[VCEcupcakes]

What's the best way/format to answer a discuss type question? not very clear on these.