VCE Accounting Question Thread!

[Kuchiki]

I'm confused as to how you think its at the end of every month? Is it in the study design?

http://www.vcaa.vic.edu.au/Documents/vce/account/AccountingSD-2013.pdf

Page 25:

• the process of posting to the general ledger from the general journal and special journals on a monthly basis

[Damoz.G]

http://www.vcaa.vic.edu.au/Documents/vce/account/AccountingSD-2013.pdf

Page 25:

That is so screwed up, because in the Cambridge Textbook when we studied the chapter earlier on in the year (Chapter 5 from memory), I used the last day of the Reporting Period, not the last day of each Month. =/

[Lucho23]

So of course you would complete it on Dec 31

You're right!

The study design says:

the process of posting to the general ledger from the general journal and special journals on a
monthly basis

EDIT: Bit late ahah

[Kuroyuki]

Textbooks are only the authors opinion on the accounting course. If you do learn from the textbook, you can get it wrong, its pretty unfair but vcaa can still mark you incorrect. I think fyrefly mentioned everyone using the box book got a question wrong one year.
The study design is god, its never wrong. At least hope not.

[Damoz.G]

Textbooks are only the authors opinion on the accounting course. If do learn from the textbook you can get it wrong, its pretty unfair but vcaa can still mark you incorrectly. I think fyrefly mentioned everyone using the box book got a question wrong one year.
The study design is god, its never wrong. At least hope not.

Yeah, I guess that's true.

I really wish VCAA would publish the Solutions to the Sample Exam. Would help us out soooo much! -.-

[Gogogadget]

I think that everyone is confusing themselves here...

Journals are reported at the end of the month
General Ledgers are balanced on the end of the reporting period with all the BDA's

The thing you have to remember is you are rarely asked to post journals over a month time span but if you want a good example look at CPAP 2013 exam 2.
You are asked to post two months worth of journals into the ledger as a result the general ledger as two months posted in it (28/2 and the 31/3).

As for the disposal of a NCA that is done in the general journal (cash receipts if you sell it) and is posted to the general ledger at the end of the month.

[Damoz.G]

Here's a possible solution to this situation: Does anyone have a copy of the old Study Design saved? Then we can compare that dot point about the journals being posted to the General Ledger.

[abcdqdxD]

I think that everyone is confusing themselves here...

Journals are reported at the end of the month
General Ledgers are balanced on the end of the reporting period with all the BDA's

This is correct. Just to make it even more explicit, journals are posted to the general ledger at the end of every month. The general ledger is balanced at the end of every reporting period. All BDA's are done on balance day (hence the name balance day adjustment).

[abcdqdxD]

Here's a possible solution to this situation: Does anyone have a copy of the old Study Design saved? Then we can compare that dot point about the journals being posted to the General Ledger.

Yes it was a new addition to the SD last year

[ashs_vb]

I thought this to be a bit weird
It is stated that the business reports monthly so houldn't an entry  from june be omitted from the current month's receipts journal.
Got it right but had a good think about it. Question for reference

The transactions provided below for Best Timber Supplies relate to an order for timber placed by a customer,
James Hay, to the value of $3500 plus GST (cost $1500 plus GST).
• 28 June 2012: A deposit of $500 was received from James Hay (Receipt 235).
• 2 July 2012: The goods were delivered to James Hay (Invoice 121 indicating credit terms 2/14, n/30).
• 9 July 2012: James Hay settled the account (Receipt 261).
The business prepares reports monthly.
Prepare the journal entries for the above transactions, including the adjusting entry that is necessary in
July 2012.

[Damoz.G]

Yes it was a new addition to the SD last year

Yeah, just saw that:
Page 20 - http://www.vcaa.vic.edu.au/Documents/vce/account/TeachingAccountingSD2012-2016.pdf

Comment on the side says:

Journals will
be posted to the General Ledger at
the end of each month. This may
not necessarily be the reporting
period. (So it would be possible to
have 12 entries in a ledger by
balance day.)

[Lucho23]

I thought this to be a bit weird
It is stated that the business reports monthly so houldn't an entry  from june be omitted from the current month's receipts journal.
Got it right but had a good think about it. Question for reference

The transactions provided below for Best Timber Supplies relate to an order for timber placed by a customer,
James Hay, to the value of $3500 plus GST (cost $1500 plus GST).
• 28 June 2012: A deposit of $500 was received from James Hay (Receipt 235).
• 2 July 2012: The goods were delivered to James Hay (Invoice 121 indicating credit terms 2/14, n/30).
• 9 July 2012: James Hay settled the account (Receipt 261).
The business prepares reports monthly.
Prepare the journal entries for the above transactions, including the adjusting entry that is necessary in
July 2012.

So the deposit is recorded in June and is thus not included in July but is maintained in the balance of prepaid sales revenue account.
However, when the goods are delivered, the Prepaid sales revenue and sales accounts are adjusted in the General Journal and the Sale is recorded in the Sales Journal.
The receipt from the debtor would be recorded in the Cash Receipts journal.

Is that what you mean?

[Damoz.G]

Okay guys, I was still pondering on the thing about the posting of the Journals to the General Ledger on a monthly basis. I know - I get paranoid about those simple things in Accounting, because you can't afford to lose any marks. Anyways, I've come to two conclusions:

* Usually, the Journals given are already for a period of a few months. e.g. It says Totals to date for like June-Sept or something. If this was the case, then you would just use Sept 30 for the Posting of the Journals to the General Ledger. I haven't come across a question, where it has CRJ's for different months. Correct me if I'm wrong.

* Also, if there happens to be a question with several Journals for different months, and there seems like there is a lot of space in the General Ledger (e.g. like 3 blank spots), then probably post each Journal INDIVIDUALLY. If there isn't enough space, then probably don't.

I think if we follow these two "guidelines", then we should be fine.

[unfamila]

^^I think that's the safest way to go about it, I sometimes get confused with these questions. Usually I add the other months together and make it the balance, however i don't know if this is correct.

[abcdqdxD]

Okay guys, I was still pondering on the thing about the posting of the Journals to the General Ledger on a monthly basis. I know - I get paranoid about those simple things in Accounting, because you can't afford to lose any marks. Anyways, I've come to two conclusions:

* Usually, the Journals given are already for a period of a few months. e.g. It says Totals to date for like June-Sept or something. If this was the case, then you would just use Sept 30 for the Posting of the Journals to the General Ledger. I haven't come across a question, where it has CRJ's for different months. Correct me if I'm wrong.

* Also, if there happens to be a question with several Journals for different months, and there seems like there is a lot of space in the General Ledger (e.g. like 3 blank spots), then probably post each Journal INDIVIDUALLY. If there isn't enough space, then probably don't.

I think if we follow these two "guidelines", then we should be fine.

I don't think this really addresses the issue of "posting on a monthly basis". Whether there is a single or multiple journals/ledgers, as long as you post to the ledger accounts at the end of the month you will be fine. I can't believe teachers haven't gone through this in class!