VCE Accounting Question Thread!

[abcdqdxD]

Had my answer all written out then abc steals it lol.

Sorry!

[Sach1_K]

Sorry!

relax its all good !

[itsdanny]

Hi everyone,

Can I ask why you cannot say that a discount expense is an expense that is in the form of a decrease in Bank? Why is it a decrease in Debtors Control? i.e. when we receive less money from our debtors (due to the discount), aren't we receiving less cash and thus Bank should decrease? What's the concept behind understanding why this cannot be the case and that the correct answer is Debtors Control.

It’s just a little perplexing to understand because when a receipt from a debtor (who has been entitled to a discount for early payment) is recorded in the CRJ, the Debtors Control column amount stays the same (because you have to clear the total amount), but it is the Bank column amount that decreases (as less cash is received by the business). Any comments on this to further expand my insight onto this would be greatly appreciated, thanks.

[abcdqdxD]

Hi everyone,

Can I ask why you cannot say that a discount expense is an expense that is in the form of a decrease in Bank? Why is it a decrease in Debtors Control? i.e. when we receive less money from our debtors (due to the discount), aren't we receiving less cash and thus Bank should decrease? What's the concept behind understanding why this cannot be the case and that the correct answer is Debtors Control.

It’s just a little perplexing to understand because when a receipt from a debtor (who has been entitled to a discount for early payment) is recorded in the CRJ, the Debtors Control column amount stays the same (because you have to clear the total amount), but it is the Bank column amount that decreases (as less cash is received by the business). Any comments on this to further expand my insight onto this would be greatly appreciated, thanks.

Bank may be affected in the long term, but discount expense has no IMMEDIATE impact on bank, but it does have an immediate impact on debtors control (your debtors owe you less). But yes, I fully understand where you are coming from

[itsdanny]

Bank may be affected in the long term, but discount expense has no IMMEDIATE impact on bank, but it does have an immediate impact on debtors control (your debtors owe you less). But yes, I fully understand where you are coming from

Excellent. Thank you abcdqdxD 

Also, may I ask what would be the best way to explain why GST does not affect the valuation of a stock (whether it may be a purchase or a sale)? I've seen a few explanations for this and they seem quite distinct, what would be the best approach on answering this?

[abcdqdxD]

GST is not a future economic benefit to the entity

think about it this way:

value of stock control - represents future economic benefit expected from selling the stock within 12 months etc.etc.

however, the GST figure does not represent a future economic benefit to the firm hence must not be included in the valuation of stock

[unfamila]

Any tips for balance day adjustments?
They're so confusing

[abcdqdxD]

Any tips for balance day adjustments?
They're so confusing

use your fingers to count months

and I guess just do heaps of them (it's kind of like maths)

Which part are you struggling with the most?

[jono88]

Draw a timeline of what is occurring. Trust me it helps

[unfamila]

the question i had trouble with  went over 2 years and they changed how many months they paid in advance the the price of rent went up throughout . And a timeline may help, but I may be pushed for time.

[abcdqdxD]

Draw a timeline of what is occurring. Trust me it helps

Drawing a timeline was confusing for me

I guess I did do a mini timeline (not super detailed).. just need to find what works for you as everyone is different

[flyhighx]

Hi,
Can someone  please explain to me in full detail of "why do we produce a Adjusted Gross Profit as well as a Gross Profit Number?"
Thanks

[abcdqdxD]

adjusted gross profit helps identify the firm's performance in its management of its stock, e.g. a high amount of stock losses (and therefore a low adj GP figure compared to GP) suggests the firm needs to improve its management of stock. if stock is broken, do we need better trained staff? if we are oversupplying stock to customers, do we need managers to be more vigilant? are we miscounting our stocktakes? etc. etc.

[flyhighx]

Can someone please complete this question?
During the year ended 30 June 2012 ,Black's electronics paid $32,300 in wages . At 30 June 2012, $600 were still owing (memo 19). The balance sheet at 30 June 2011 showed accrued wages of $450. The next date for payment of wages is 7 July 2012 when $2000 will be paid to employees (chq 721)
1. calculate wages expense for year ended 30 June 2012

[Sach1_K]

Can someone please complete this question?
During the year ended 30 June 2012 ,Black's electronics paid $32,300 in wages . At 30 June 2012, $600 were still owing (memo 19). The balance sheet at 30 June 2011 showed accrued wages of $450. The next date for payment of wages is 7 July 2012 when $2000 will be paid to employees (chq 721)
1. calculate wages expense for year ended 30 June 2012

Assuming when it says 32,300 in wages it means wages in general including accrued. So shouldn't it be 32,300 - 450(previous periods accrued wages) and + 600(wages incurred not paid)? So altogether 32,450. This is just the way I interpreted the question I could be (probably) wrong.
And if wages meant just wages expense it would be just 32,300+600.