VCE Accounting Question Thread!

[demand&supply]

does anyone know where I can find solutions to the sample exam from VCAA? The solution of this:
http://www.vcaa.vic.edu.au/Documents/vce/account/accnt-specs-samp-w.pdf

[ValiantIntellectual]

Does the term selling price include GST? Likewise cost price?

[abcdqdxD]

Does the term selling price include GST? Likewise cost price?

Normally they will make it clear whether its GST inclusive or exclusive

[lmnop]

I might as well ask another question since you guys were quick enough to respond to my last query.
A payment of wages of $505 was incorrectly recorded in the cash payments journal as a payment to creditor- N. Smythe for $550.
The solutions debit $505 to Wages expense and likewise credit $505 to Creditors control.
Now what happens to the extra $45 from payments to Creditors? Should there be an extra entry that debits $45 to Bank?

[redcracker]

I might as well ask another question since you guys were quick enough to respond to my last query.
A payment of wages of $505 was incorrectly recorded in the cash payments journal as a payment to creditor- N. Smythe for $550.
The solutions debit $505 to Wages expense and likewise credit $505 to Creditors control.
Now what happens to the extra $45 from payments to Creditors? Should there be an extra entry that debits $45 to Bank?

wages debit $505 (to correct the fact that no wages recorded)
creditors control&creditor n smythe credit $550 (to undo the changes to cc/cns)
bank debit $45 (to restore bank to what it should be)

i formatted it weirdly, but thats how i would do it - im fairly sure im right but i cant be certain

[lmnop]

wages debit $505 (to correct the fact that no wages recorded)
creditors control&creditor n smythe credit $550 (to undo the changes to cc/cns)
bank debit $45 (to restore bank to what it should be)

i formatted it weirdly, but thats how i would do it - im fairly sure im right but i cant be certain

The solutions for the Cambridge textbook seems to have mistakes here and there, but I can't really say for sure. ¯\_(ツ)_/¯

[Fyrefly]

wages debit $505 (to correct the fact that no wages recorded)
creditors control&creditor n smythe credit $550 (to undo the changes to cc/cns)
bank debit $45 (to restore bank to what it should be)

i formatted it weirdly, but thats how i would do it - im fairly sure im right but i cant be certain

This is correct.

[BoredSatan]

Alright, I'll try to be online as much as possible to help with Accounting Questions!

[Valyria]

Alright, I'll try to be online as much as possible to help with Accounting Questions!

This place has been a ghost town for the past 11 months I'll try revive it;

Summarised information;

Question concerns the budgeted cash flow statement for operating activities.

GST collected from cash sales is $18,700
GST paid is $19,445

They have told us that balance at the END is $11,105 and NO information has been provided for the START.

So if those are the only transactions that involve GST and we reconstruct the ledger, we should have a debit entry cross referenced 'bank' for $11,850. This figure representing a refund from ATO.

However, as the answers didn't include this entry, I'm not too sure whether I overlooked a key step.

[demand&supply]

Hey guys,
Sorry to ask these questions but i really want to know...
I'm rank 1 in my school with 94% in Unit 3 and 92% in Unit 4. I did well on the trial exam (TSSM) with 93%, Im dying to know, do i have to get 100/100 on the exam for a 50?

[jonoz0r]

Hey guys,
Sorry to ask these questions but i really want to know...
I'm rank 1 in my school with 94% in Unit 3 and 92% in Unit 4. I did well on the trial exam (TSSM) with 93%, Im dying to know, do i have to get 100/100 on the exam for a 50?

Nah you don't. Last year 194/200 (97/100) was enough for a 50, so don't fret!

It might be different this year though

[Fyrefly]

This place has been a ghost town for the past 11 months I'll try revive it;

Summarised information;

Question concerns the budgeted cash flow statement for operating activities.

GST collected from cash sales is $18,700
GST paid is $19,445

They have told us that balance at the END is $11,105 and NO information has been provided for the START.

So if those are the only transactions that involve GST and we reconstruct the ledger, we should have a debit entry cross referenced 'bank' for $11,850. This figure representing a refund from ATO.

However, as the answers didn't include this entry, I'm not too sure whether I overlooked a key step.

Can't answer the question based on the information you've provided.

1. Ending balance debit or credit?
2. Full financial year?
3. Cash-only basis, or does the ending balance potentially include credit transactions?
4. GST paid is cash only?

[demand&supply]

Nah you don't. Last year 194/200 (97/100) was enough for a 50, so don't fret!

It might be different this year though

Oh WOW! Thats pretty good! And congrats on the amazing score man 

[kk.08]

This place has been a ghost town for the past 11 months I'll try revive it;

Total agree with you!

Anyhow, what is the purpose of the going concern principle?

[Coralista]

Total agree with you!

Anyhow, what is the purpose of the going concern principle?

Going concern states that
-the business is assumed to be continuous and its records should be kept on that basis.
-this allows the recording of transactions that have an effect on the future (such as depreciation, prepaid revenue/expenses etc)
-also assets and revenue can be distinguished