VCE Accounting Question Thread!

[sin0001]

 Question: http://puu.sh/5dYx6.png
 VCAA's Answer: http://puu.sh/5dYz9.png
Why have they included the transaction on the 28th of June?

[Damoz.G]

Question: http://puu.sh/5dYx6.png
 VCAA's Answer: http://puu.sh/5dYz9.png
Why have they included the transaction on the 28th of June?

We were discussing that last night. Its a mistakes because Reports are prepared monthly.

[Kuchiki]

Question: http://puu.sh/5dYx6.png
 VCAA's Answer: http://puu.sh/5dYz9.png
Why have they included the transaction on the 28th of June?

The question does say to "Prepare the journal entries for the above transactions," which would include the transaction on the 28th of June.

[Damoz.G]

The question does say to "Prepare the journal entries for the above transactions," which would include the transaction on the 28th of June.

But Reports are prepared monthly? You can't record a transaction that occurred in June into July's CRJ. =/

[abcdqdxD]

Just follow the instructions of the question and you cant go wrong

[Damoz.G]

Just follow the instructions of the question and you cant go wrong

So would you include the transaction on the 28th as well? I would have thought it was a trick even though it said "above transactions".

[Kuchiki]

But Reports are prepared monthly? You can't record a transaction that occurred in June into July's CRJ. =/

You mean journals are posted to the ledger monthly, right? Reports are prepared at the end of every reporting period.

Anyway, it doesn't say anywhere that it's strictly July's Cash Receipts Journal. Plus, you can clearly see that it's not a comprehensive Journal, anyway; you're just recording the transactions in the question. So, I guess, just imagine you're recording each entry as they've occurred, and you just happen to be putting them into one Journal template.

[Damoz.G]

You mean journals are posted to the ledger monthly, right? Reports are prepared at the end of every reporting period.

Anyway, it doesn't say anywhere that it's strictly July's Cash Receipts Journal. Plus, you can clearly see that it's not a comprehensive Journal, anyway; you're just recording the transactions in the question. So, I guess, just imagine you're recording each entry as they've occurred, and you just happen to be putting them into one Journal template.

Ooops...yeah. REPORTS are prepared monthly. Hmmm...that makes more sense.

Thank you.

[itsdanny]

If the full invoice price provided is to be $500 (plus $50 GST), and a deposit was received from the customer for 20% of that value, are we performing the calculation off the GST included figure or? (I am aware that deposits do not involve GST, but I believe it is a different story when it comes to an invoice full that includes GST) Any clue?

[abcdqdxD]

deposit is levied on total amount owing (therefore gst inclusive)

[Damoz.G]

deposit is levied on total amount owing (therefore gst inclusive)

I thought the study design changed last year, and GST was only recognised at the time of the Sale, so it would be excluding the GST.

[abcdqdxD]

When you record it, you don't recognise the GST in your CRJ. But the deposit is levied on the total amount payable which includes GST.

[Damoz.G]

When you record it, you don't recognise the GST in your CRJ. But the deposit is levied on the total amount payable which includes GST.

I know that bit.

Wasn't the question if GST was to be included when paying the Deposit?

[abcdqdxD]

I know that bit.

Wasn't the question if GST was to be included when paying the Deposit?

The question was whether the 20% is levied on the total amount owing or just the sales figure

[Damoz.G]

The question was whether the 20% is levied on the total amount owing or just the sales figure

Yeah, so you would do 20% x 500=$100 deposit, wouldn't you?