VCE Accounting Question Thread!

[abcdqdxD]

What does it mean when it says 'Stock Control' and 'Cost of Sales'?

Stock control (asset) is the account that summarises all movement of stock in and out of the business

Cost of sales is an expense account that records cash and credit sales of stock at cost price

[sin0001]

When a questions asks to 'balance all appropriate general ledger accounts', besides balancing all assets/liability accounts, do we also have to foot all the OE accounts or is it optional?

[abcdqdxD]

all A/L/OE accounts must be balanced

[sin0001]

Why is Loan recorded in the General Journal, not the Cash Receipts Journal? I mean, aren't you getting cash when the Loan is received?
Also, I would appreciate any general tips for AOS 1 of Unit 3 (pretty much recording + principles/characteristics), as I have a SAC on this tomorrow :S

[abcdqd]

Why is Loan recorded in the General Journal, not the Cash Receipts Journal? I mean, aren't you getting cash when the Loan is received?
Also, I would appreciate any general tips for AOS 1 of Unit 3 (pretty much recording + principles/characteristics), as I have a SAC on this tomorrow :S

where do they record loans in the general journal? i'm pretty sure it goes in the cash receipts journal.
tips: revise theory 100x more than prac

[TimmyC]

Why is Loan recorded in the General Journal, not the Cash Receipts Journal? I mean, aren't you getting cash when the Loan is received?
Also, I would appreciate any general tips for AOS 1 of Unit 3 (pretty much recording + principles/characteristics), as I have a SAC on this tomorrow :S

It is the cash receipts journal

[sin0001]

Woops, I meant when the business is started, like in the following question:
Bikes 4 Everyone, , commenced business on 1 July 2012. Her accountant advised her to set up a double-entry system of accounting, and recommended using control accounts for stock, debtors and creditors.
Jacquie contributed the following items to the business:
1   office furniture that she had at home valued at $1 500
2   a motor vehicle that originally cost $60 000; the agreed value is $45 000
3   motor vehicle registration, which still has five months to run, with an annual cost of $840
4   a bank loan (ANZ) used to finance the motor vehicle with a balance owing of $32 000 (Memo 1)
5   $65 000 of her own money (Rec. 001).

Why is the loan (Transaction 4) recorded in the General Journal, also why is this loan debited from the 'Capital' account in the GL?

[abcdqd]

the business is using money from the bank to pay for its motor vehicle, so it is not actually receiving any cash. this is shown by the source document being a Memo, not a Receipt, thus it is recorded in the general journal.
a liability ledger account would then be created for the loan, with a balance of 32000 CR, with the two-fold effect being a debit of 32000 for capital. this is due to the owner not paying the total agreed value of 45000 herself, but instead putting 32000 on a loan that will be paid by the business.

[sin0001]

So this transaction works in a same way as Drawings, as it's also negative OE?

[abcdqd]

So this transaction works in a same way as Drawings, as it's also negative OE?

sort of, the difference is that the owner isn't taking assets directly out of the business, but instead increasing its liabilities.

[abcdqdxD]

ehh? Loan is a current liability not OE

remember liabilities+oe=total equity

[flyhighx]

Hi,
someone please explain how GST refund is recorded in Cash receipts and why is it treated that way

Thanks

[abcdqdxD]

Details column: GST Refund (if i recall correctly)

Recorded under the heading "Sundries" as it is an infrequent cash receipt (remember not to confuse this with GST received from customers)

[abcdqd]

the details are "GST clearing" as that is the name of the ledger account that you cross-reference the transaction with

[abcdqdxD]

the details are "GST clearing" as that is the name of the ledger account that you cross-reference the transaction with

Ahh ok fair enough I'm a bit rusty