VCE Accounting Question Thread!

[kk.08]

I know that this is probably irrelevant here, and I do apologise but I really need some help.
So I've done like 5 practice exams, and I'm only getting like 70. I'm losing marks on prac and theory and I don't know how to get better. Does anyone have any actually helpful tips ? TIA.

I second this, need some last minute tips as well!

[student1122]

I second this, need some last minute tips as well!

Hey,

Well, the best way to minimise your mistakes is to take your time first of all to do all the questions and think them through specially with prac. Theory questions, always try to relate it to what principles/qualitative characteristic the questions can relate to. There are many questions that are often asked again and again such as the difference between product and period cost, definition of net realisable value and why it is done (because of conservatism), etc. Revise through unit 4 more than unit 3 as most of the exam will be on unit 4. Read through the chapters and if you have the cambridge vce accounting book, memorize the definitions that are on the side margins of the book. REALLY KNOW YOUR BASICS AS WELL, such as reasons for stock loss/gain, reasons for profit/loss on disposal, definitions of assets, expenses, revenues and liabilities. Also, memorise the format for the reports and ledger accounts (do all of these: stock control, creditors control, debtors control, GST clearing, expenses, revenues) this will help you heaps if there is any budgeting questions because then you know what information to look for rather than hope for the information to stand out to you.

I really hope this helped and tell me if you need any other help

[TheWackyCheese]

Accrued wages are wages that the are still owing to the employees and is therefore a liability. The income statement only consists of revenues and expenses, while the balance sheet consists of liabilities, assets and owners equity. Therefore, accrued wages would be recorded in the balance sheet not the income statement

Yeah I know Accrued Wages are a liability. But I remember I had to put accrued wages into the income statement. If the business paid off accrued wages, would it be listed as accrued wages or just wages in the income statement?

[student1122]

Yeah I know Accrued Wages are a liability. But I remember I had to put accrued wages into the income statement. If the business paid off accrued wages, would it be listed as accrued wages or just wages in the income statement?

you NEVER write accrued wages in the income statement. If they are wages that are accrued for the current reporting period (so you incurred this expense but you have not paid it yet) then you include it in your wages expense. But if it is from the previous reporting period then it is not included.

[Valyria]

Yeah I know Accrued Wages are a liability. But I remember I had to put accrued wages into the income statement. If the business paid off accrued wages, would it be listed as accrued wages or just wages in the income statement?

If a firm has incurred wages expense for a reporting period and haven't paid, an accrued wages (current liability) account is created. However, through the underlying principles of accrual accounting, revenue earned must be matched with expenses incurred in a given reporting period and so the wages the firm hasn't paid increases wages expense for the reporting period. When the firm pays after the reporting period, only their bank balance and accrued wages decrease since expenses was recognised in the previous reporting period. Thus you'll never see 'accrued wages' in an income statement but the 'wages expense' may include a portion of wages that hasn't been paid.

[Valyria]

Hey guys,

When we write-down stock in the stock card, what position do we record them in the last column (balance column)?

When we are required to close off rev/exp accounts to P/L summary in the general journal, how do we treat sales return? Since it's a (-R) account, do we close it off with the expenses? Or do we first transfer it to the sales ledger and then close off the sales account?

Thanks in advance

[lisax3]

Hey guys,

We we write-down stock in the stock card, what position do we record them in the last column (balance column)?

When we are required to close off rev/exp accounts to P/L summary in the general journal, how do we treat sales return? Since it's a (-R) account, do we close it off with the expenses? Or do we first transfer it to the sales ledger and then close off the sales account?

Thanks in advance

I'm wondering about the same thing for the first question. And to close off sales return, you close it by it self as a negative revenue so the entry would look like this
DR profit and loss summary
   CR Sales return
You can also close it with sales because my teacher (who is an assessor) told me there are 2 ways to do it. But she also told me that its not in the course.

[simenzz]

are you guys smart

[Zealous]

I'm wondering about the same thing for the first question. And to close off sales return, you close it by it self as a negative revenue so the entry would look like this
DR profit and loss summary
   CR Sales return
You can also close it with sales because my teacher (who is an assessor) told me there are 2 ways to do it. But she also told me that its not in the course.

Yep, I've been told that since Sales Return is neither a true revenue or expense, we just close it off separately to Profit and Loss Summary.

For the Stock Write-Down, I think you should treat it as if it is expected to be the first stock to go out (so at the top), unless otherwise specified. So the exception would be VCAA 2013 where they had two stock write-downs in a row, so the earlier write-down would get the place at the top. That's personally how I'm going to go about it.

[exceed]

Hi I'm not sure if this has been answered yet, but what are the limitations of using control accounts and subsidiary ledgers?

And also, what is the effect on the income statement if the NRV rule hadn't been recognised if the NRV had fallen below cost price?

[student1122]

Hi I'm not sure if this has been answered yet, but what are the limitations of using control accounts and subsidiary ledgers?

And also, what is the effect on the income statement if the NRV rule hadn't been recognised if the NRV had fallen below cost price?

I don't know about the limitations, disadvantages are that they can increase expenses as a staff member is required to record in the subsidiary ledger
If NRV has not been recognized then stock write down expense is not recognized, calculating a lower adjusted gross profit, leading to a lower net profit

[student1122]

What do I need in the exam to get 45+
I get around 90 in practice exams :/

[Selcouth]

What do I need in the exam to get 45+
I get around 90 in practice exams :/

If you can get 93+ in the actual exam I think you'd have a pretty good shot at getting a 45.
But hey, what would I know?

[kk.08]

Does anyone know how to figure out question 1c?

This what the answers say
Bank - $1078
Discount revenue - $22
Creditors control - $1100

Thanks!

[brisbane99]

Does anyone know how to figure out question 1c?

This what the answers say
Bank - $1078
Discount revenue - $22
Creditors control - $1100

Thanks!

Lyalls Imports bought 3 chairs for $500 each plus GST. Since they returned one, the balance now owing is 2 chairs (2x550)

The questions states the CPJ from Lyalls imports POV: 1100 Creditors control 22 Discount Revenue (0.02 x 1100 as stated) and therefore 1078 bank (1100-22)