VCE Accounting Question Thread!

[Berimbolo King]

Yeah I have noticed they are including a lot more in the practice exams I've been doing as a way to trick students. Thanks for the quick response!

No worries, hows your revision going?

[friedjelly]

If anyone has done the NEAP 2014 Exam please let me know, I think there may be a few errors in it but I'm not 100% sure...

[Berimbolo King]

If anyone has done the NEAP 2014 Exam please let me know, I think there may be a few errors in it but I'm not 100% sure...

Yep , Questiom 3e if im not wrong.
Capital meant to be 600 instead of 2000.

[schooliskool]

They would usually tell you. But yes you should .

In last years exam (VCE ofc) they didn't for the balance sheet question, and you needed them to get a proper gst figure. They do use it to trick you.

[teresa_turtle1234]

when calculating cost of sales for budget reconstruction, should it be recorded separately or together in the ledger account if its from cash sales or credit sales?

[schooliskool]

when calculating cost of sales for budget reconstruction, should it be recorded separately or together in the ledger account if its from cash sales or credit sales?

In the stock control ledger right? Separate for cash and credit sales, both called cost of sales credit side

[cameotodd]

In the stock control ledger right? Separate for cash and credit sales, both called cost of sales credit side

When reconstructing you don't have to follow the proper ledger rules, so you can have them as one single entry as long as you get the answer you're looking for. This only applies to reconstructions tho.

[schooliskool]

Two questions if anyone could help would be appreciated =]

1) $200 interest expense was incorrectly recorded as interest revenue. Record the necessary correcting entry.
My guess was;
Int Rev 200 debit
Int Exp 200 debit
P+L Sum 400 credit
Is that right? If not, how do you do it when they are both on the same side?

2) Just in general, how do you do prepayments and accrued expenses in the cash flow statement (operating activities)
Say Insurance paid 12 months in advance $1800 1 October, cash flow statement for end of December
So how do you record this fully in the operating activities? I know that the insurance expense for that period is 450, but what do I do  with the rest of the prepayment since it is technically an outflow
And also same thing, what about accrued expenses?

[EvoFusion]

Hey your links aren't opening from your old post about ledger templates what is with that???

[chasej]

Two questions if anyone could help would be appreciated =]

1) $200 interest expense was incorrectly recorded as interest revenue. Record the necessary correcting entry.
My guess was;
Int Rev 200 debit
Int Exp 200 debit
P+L Sum 400 credit
Is that right? If not, how do you do it when they are both on the same side?

2) Just in general, how do you do prepayments and accrued expenses in the cash flow statement (operating activities)
Say Insurance paid 12 months in advance $1800 1 October, cash flow statement for end of December
So how do you record this fully in the operating activities? I know that the insurance expense for that period is 450, but what do I do  with the rest of the prepayment since it is technically an outflow
And also same thing, what about accrued expenses?

1) You also have to adjust bank. interest expense is an outflow so you have to debit bank to ensure the erroneous credit is eliminated. and then when you add interest revenue you debit to bank to record the inflow of interest which is cash. P/L summary is a tool you use at the end of the reporting period to calculated net profit/loss. [this is unless you were advised by the question to make the adjustment at the end of the reporting period after the P/L summary was completed - if that was the case you are correct]

2) In the cash flow statement you record it 'prepaid [asset] expense paid' as an outflow for the full amount you paid. for the income statement you record only the amount of the expense consumed in the reporting period.

The cash flow statement records all flows of cash, whereas income statement only includes expenses incurred (not necessarily paid), and revenues earned (not necessarily received).

Accrued expenses in the cash flow statement isn't included as by definition it is an expense you have incurred, but no outflow of cash has occurred.

The distinction between cash flows and profit earned/expenses incurred is very important [has its own dot point in the key knowledge] so make sure you learn it well for the exam.

[cameotodd]

Accounting exam 2, for the year 2012, Q3: In the income statement, how do you get the wages expense figure.

[mc1234]

If a question asks us to "Close the revenue accounts", do we have to close the Sales Returns account in this entry despite it being a negative account? The Compak 2014 for question 7b does not include the Sales Returns in the closing of the revenue accounts but surely, as it is still a revenue account, Sales Returns must be closed too in order to allow for the calculation of an accurate profit?

[cameotodd]

How do they get rent paid in cash outflows as 26800?

[omcgil15]

How do they get rent paid in cash outflows as 26800?

(Image removed from quote.)

(Image removed from quote.)

2000 per month from July to November and then 2400 per month from December to June
so (5 times 2000) plus (7 times 2400)

[omcgil15]

If a question asks us to "Close the revenue accounts", do we have to close the Sales Returns account in this entry despite it being a negative account? The Compak 2014 for question 7b does not include the Sales Returns in the closing of the revenue accounts but surely, as it is still a revenue account, Sales Returns must be closed too in order to allow for the calculation of an accurate profit?

Close Sales Returns as an expense