VCE Accounting Question Thread!

[Kuroyuki]

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!

Teachers probably have. But its like one of those thing u just accept without thinking.

[abcdqdxD]

Yeah fair enough. Most of the accounting cohort of last year were stressed over it too. But it's unlikely to cause any trouble in the exam so don't let it put you off your game.

If in doubt, record on a monthly basis - you can't go wrong.

[Damoz.G]

I can't believe teachers haven't gone through this in class!

Yeah I know, but I guess the Study Design seems to change every year which is actually quite frustrating as well.

A couple of weeks ago, when I was doing an older VCAA Exam 2, I came across a question where a Deposit was made, then it obviously converted into a Sale. Now, with the GST Component, usually its 10% of the Deposit + the rest of the Sale amount. However, in the older exam, GST was only charged on the Sale amount (and not the GST ).

It changes so many times! Can't wait for proper Accounting at Uni!

[Damoz.G]

Yeah fair enough. Most of the accounting cohort of last year were stressed over it too. But it's unlikely to cause any trouble in the exam so don't let it put you off your game.

If in doubt, record on a monthly basis - you can't go wrong.

Yeah exactly, and I might "communicate" with my assessor by putting a little comment next to it.

[FunkyAfrican]

For an Interest only question where the business does not make loan repayments during the course of the loan and only pays interest expense, how would this be recorded in the Balance sheet?

[Damoz.G]

For an Interest only question where the business does not make loan repayments during the course of the loan and only pays interest expense, how would this be recorded in the Balance sheet?

How would the Interest be recorded or the Loan be recorded in the Balance Sheet?

The Loan would simply be recorded as a Non-Currently Liability with the full balance. Interest Expense would only be recorded as "Accrued Interest Expense" as a Current Liability if the expense was incurred in a particular Reporting Period, but was yet to be paid by the firm.

[abcdqdxD]

For an Interest only question where the business does not make loan repayments during the course of the loan and only pays interest expense, how would this be recorded in the Balance sheet?

Well it would only increase your expenses (interest expense) and decrease net profit. This will impact on the owner's equity section of the balance sheet in the form of a lower net profit/larger net loss.

The liability (represented by the loan) will not change as the principal amount has not been paid off.

EDIT: Beaten by Damoz. This guy is too keen.

[ashs_vb]

What i meant was, transactions from the previous period should not be recorded in the special journal given that the new reporting period is started, or am i wrong. eerrgghh all this nitty gritty stuff is pretty annoying

[Damoz.G]

EDIT: Beaten by Damoz. This guy is too keen.

LOL! May be I should stop answering questions. Probably annoying a few people who type up their responses as well.

What i meant was, transactions from the previous period should not be recorded in the special journal given that the new reporting period is started, or am i wrong. eerrgghh all this nitty gritty stuff is pretty annoying

I don't understand your question now. =/

Transactions from previous Reporting Periods are only recorded in Journals for this Reporting Period if its an Accrued Expense that has now been paid in the current Reporting Period.

EDIT: Do you want to may be post an Example of a Question? And then we can explain it to you.

[ashs_vb]

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.
 right
so special journals get posted in every reporting period than are zeroed. The deposit should have been recorded in the june CRJ, not in the one accounted for july seeing that it the business operates on a monthly reporting period basisI recorded it anyway though. This is off last year's exam

[Damoz.G]

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.
 right
so special journals get posted in every reporting period than are zeroed. The deposit should have been recorded in the june CRJ, not in the one accounted for july seeing that it the business operates on a monthly reporting period basisI recorded it anyway though. This is off last year's exam

Yes, the Deposit would have been recorded in the Reporting Period of June's Special Journals, specifically the CRJ.

However, the Deposit (Prepaid Sales Revenue) must be removed in the General Journal for this Reporting Period. The Deposit is no longer a Current Liability in the Balance Sheet of Best Timber Supplies. Instead, its now Sales Revenue earned because the good have been delivered. So, we need to get rid of this Liability that was created close to the end of June.

Therefore, in the General Journal:
* DR: Prepaid Sales Revenue
* CR:    Sales Revenue

and the record rest of the transactions into the Special Journals as usual.

Is this what you're asking for?

[ashs_vb]

Yes, the Deposit would have been recorded in the Reporting Period of June's Special Journals, specifically the CRJ.

However, the Deposit (Prepaid Sales Revenue) must be removed in the General Journal for this Reporting Period. The Deposit is no longer a Current Liability in the Balance Sheet of Best Timber Supplies. Instead, its now Sales Revenue earned because the good have been delivered. So, we need to get rid of this Liability that was created close to the end of June.

Therefore, in the General Journal:
* DR: Prepaid Sales Revenue
* CR:    Sales Revenue

and the record rest of the transactions into the Special Journals as usual.

Is this what you're asking for?

http://www.vcaa.vic.edu.au/Documents/exams/account/2012/accounting_assessrep12.pdf

Q4 answer, that is why i was perplexed, even though i included it
 
261 3 283 67 3 350

[Damoz.G]

http://www.vcaa.vic.edu.au/Documents/exams/account/2012/accounting_assessrep12.pdf

Q4 answer, that is why i was perplexed, even though i included it
 
261 3 283 67 3 350

Ahhh.....Okay!

Ermmm...Yeah, I think that is a mistake in the Examiner's Reports.  abcdqdxD, would you agree?

[abcdqdxD]

Ahhh.....Okay!

Ermmm...Yeah, I think that is a mistake in the Examiner's Reports.  abcdqdxD, would you agree?

Can I get back to you tomorrow? I need some sleep

[Damoz.G]

Can I get back to you tomorrow? I need some sleep

Lol. Yeah, no worries! Same here.