VCE Accounting Question Thread!

[One Step at a Time]

Have all of you finished the course already? I feel like my school is behind... we're starting Unit 4 Outcome 2 this week 

Also, where's everyone getting the practice exams from? VCAA is the only "company" I know of hahah

[readothien]

Hi I'm only in the 1/2 class at the moment but I have a couple of friends doing the 3/4. I think (not certain here) that they may have already finished the course. Not sure at all where they are with assessments but I do know they had a SAC about 3 weeks ago.

For the practice exams, my school provides us with A LOT of them that are titled 'Nano exams'. I'm not sure if these are company or school made but they are really good revision. I believe that TSSM sells accounting practice exams, so maybe check there?

Hope this helped!

[Cornrow Kenny]

Have all of you finished the course already? I feel like my school is behind... we're starting Unit 4 Outcome 2 this week 

Also, where's everyone getting the practice exams from? VCAA is the only "company" I know of hahah

Finished content, last SAC this week.

My teacher has a lot of previous papers from various companies. Have you asked your teacher if they have any - or can get any?

[reganconnor16]

I've finished all coursework, now doing trial exams this week in 3/4.
I have been doing practice exams and marking my mistakes in red... Lots of red...
If anyone has any tips on remembering how to record specific items, I'd gladly take it on board.
Thanks.

[One Step at a Time]

Hi I'm only in the 1/2 class at the moment but I have a couple of friends doing the 3/4. I think (not certain here) that they may have already finished the course. Not sure at all where they are with assessments but I do know they had a SAC about 3 weeks ago.

For the practice exams, my school provides us with A LOT of them that are titled 'Nano exams'. I'm not sure if these are company or school made but they are really good revision. I believe that TSSM sells accounting practice exams, so maybe check there?

Hope this helped!

Hey!  Thanks you for your reply, I'll check out the TSSM papers. I've heard that the lectures/ classes aren't the best, but maybe the papers are worth having a go it.

Finished content, last SAC this week.

My teacher has a lot of previous papers from various companies. Have you asked your teacher if they have any - or can get any?

Wow, your school is blazing through the course. Well, my teacher always says that we're quite ahead, but seeing that we're starting Key Performance Indicators now, I have a feeling that we're not...

Funnily enough, my school has heaps of company papers for Bio, Chem, and those subjects but none for accounting...

I guess I'll have to buy the papers, but from what I've seen, most of them are around $30 each! Yikes!!

I've finished all coursework, now doing trial exams this week in 3/4.
I have been doing practice exams and marking my mistakes in red... Lots of red...
If anyone has any tips on remembering how to record specific items, I'd gladly take it on board.
Thanks.

Wow, I'm definitely behind then!

Are you doing VCAA/ company papers? Were they provided by your teacher?

Haha I get that feeling of "lots of red" before everyone SAC! 

Do you mean recording in the journals? Or do you mean recording your mistakes?

[One Step at a Time]

Few pre-SAC questions I'd love to get some help with:
1. Just checking, is there such thing as "customers duty"? I saw it in one of my school's practice SACs, so I'm not sure if it's a typo or another way of "customs duty". Has anyone here been taught that it's "customers duty"?

2. In the Cash Flow Statement, do you need to have the heading "Operating Activity Inflows" AND "Operating Activity Outflows" or can we simply write "Operating Activities" at the top?

3. If stock purchases was $30 000 and customs duty was $1000 in a period, what would be reported in the Cash Flow Statement? Don't we assume that the business uses product costing if not stated otherwise for VCE? So wouldn't we combine the 2 items as "Stock purchases" (cash outflow) of $31 000? Or would we keep them separately?

4. In the Cash Flow Statement, is GST collections always 10% of Cash Sales?
One last question:

[Maz]

I've finished all coursework, now doing trial exams this week in 3/4.
I have been doing practice exams and marking my mistakes in red... Lots of red...
If anyone has any tips on remembering how to record specific items, I'd gladly take it on board.
Thanks.

To be honest I don't think there are any 'tips', you just need to work through it logically and think about where the money will go. Alot of this will come from following examples but you can always just rote memorise as well

[The Usual Student]

sorry i posted too soon, in regards to the last post,
I presume so since no other cash inflows charge GST, maybe if you had a weird form of interest revenue that did you would.

[One Step at a Time]

Hi The Usual Student 

Thanks so much, understand it know

What did you mean by "The period and product assumption is always assumed, as in you apply the assumption." though?

Also, what are the restraints of budgeted reports? I guess I can use common sense to write an answer, but I can't seem to find anything on it in my teacher's notes!

Another question haha If the estimate for bad debts is 1% of credit sales plus GST, why do we have to include the GST in the debtors control accounting.
e.g. If credit sales was $710 000, then bad debts would be $710 000*0.01= $7100. But on the credit side of the debtors control account, the answer says $7810 (which is 1.1 * $7100). The cross reference is only to "bad debts" (not "GST Clearing"). I don't understand why we need to include the GST as the total bad debts though?

Last question, when we reconstruct accounts, do we need to balance/ close? 

[The Usual Student]

Hi The Usual Student 

Thanks so much, understand it know

What did you mean by "The period and product assumption is always assumed, as in you apply the assumption." though?

Also, what are the restraints of budgeted reports? I guess I can use common sense to write an answer, but I can't seem to find anything on it in my teacher's notes!

Another question haha If the estimate for bad debts is 1% of credit sales plus GST, why do we have to include the GST in the debtors control accounting.
e.g. If credit sales was $710 000, then bad debts would be $710 000*0.01= $7100. But on the credit side of the debtors control account, the answer says $7810 (which is 1.1 * $7100). The cross reference is only to "bad debts" (not "GST Clearing"). I don't understand why we need to include the GST as the total bad debts though?

Last question, when we reconstruct accounts, do we need to balance/ close? 

 a better way to think about the gst and bad debt bit, the gst + sale = total owed by debtor
and when we think about what the debtor represents to the firm, the debtor owes both GST AND SALES to the firm and we don't really distinguish between the two. Bad debts are the amount we aren't going to get paid back, so 1% of credit sales is 1% of what the debtor owes to the firm. Unless you intepret 1 % of credit sales as literally 1%  of exclusively the credit sales which some people in my class did so that might be the correct answer. I still remain in the GST included camp but yeah idk

[One Step at a Time]

Ah I got it, thank you so much!! (Btw I see a premier's coming your way)

a better way to think about the gst and bad debt bit, the gst + sale = total owed by debtor
and when we think about what the debtor represents to the firm, the debtor owes both GST AND SALES to the firm and we don't really distinguish between the two. Bad debts are the amount we aren't going to get paid back, so 1% of credit sales is 1% of what the debtor owes to the firm. Unless you intepret 1 % of credit sales as literally 1%  of exclusively the credit sales which some people in my class did so that might be the correct answer. I still remain in the GST included camp but yeah idk

Yeah it's a bit weird. I guess you could take 1% of the credit sales + GST or take 1% of the credit sales, THEN multiply it by the GST. Comes out with the same ans, but I wonder which method is correct... especially when most questions don't say bad debts + GST...

Or is it assumed that the bad debts already inc. GST e.g. debtor receipts, so technically the 1st method is correct? 

[The Usual Student]

Ah I got it, thank you so much!! (Btw I see a premier's coming your way)

Yeah it's a bit weird. I guess you could take 1% of the credit sales + GST or take 1% of the credit sales, THEN multiply it by the GST. Comes out with the same ans, but I wonder which method is correct... especially when most questions don't say bad debts + GST...

Or is it assumed that the bad debts already inc. GST e.g. debtor receipts, so technically the 1st method is correct? 

The GST is assumed as apart of the bad debt. Only issue is the wording of the transaction.
Since it says 1% of credit sales you can interpret it as your bad debts being ONLY 1% of your credit sales and you won't need to apply the GST afterwards.

But I assume 1% of credit sales ( you include the GST in the figure ) when you multiply it by 0.01 since the debates owe the firm the credit sale and the GST. It's kinda a hidden implication.

So you get two VERY different answers depending on the method you take , the second method wouldn't really make any sense since you shouldn't be applying GST to a bad debt figure AKA there is no such thing as bad debt + GST.

[One Step at a Time]

The GST is assumed as apart of the bad debt. Only issue is the wording of the transaction.
Since it says 1% of credit sales you can interpret it as your bad debts being ONLY 1% of your credit sales and you won't need to apply the GST afterwards.

But I assume 1% of credit sales ( you include the GST in the figure ) when you multiply it by 0.01 since the debates owe the firm the credit sale and the GST. It's kinda a hidden implication.

So you get two VERY different answers depending on the method you take , the second method wouldn't really make any sense since you shouldn't be applying GST to a bad debt figure AKA there is no such thing as bad debt + GST.

Ahh yes so true, thanks so much! Never even realised until I did that question 

I'll just remember to take whatever % from the credit sales + GST! Unless, of course, the question asks for a % of only credit sales.

Is that right? 

[joejoh]

Yeah, this whole GST thing is really interesting. I remember doing a Compak practice sac for budgeting and faced this dilemma. It said " Bad Debts 1% of credit sales " and the answers had 1% of the credit sales not including GST. Whereas I charged 1% on credit sales including GST.
Also the study design states that "Bad Debts with GST not applicable"... just thought i'd point that out. 

[Rumena]

Hey guys, does anyone know how many marks you can drop to get a 50 in accounting? Assume you've been ranked 1st throughout the whole year?