Cambridge Checkpoints VCE Accounting Unit 4 2015

SOLUTIONS

5 SOLUTIONS: RECORDING AND VALUATION OF STOCK

Question 1

a Stock Card 25

Date / IN / OUT / BAL
QTY / Price / Value / QTY / Prive / Value / Qty / Price / Value

b General Journal

Date / Accounts / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

Question 2

a.  Transaction

b.  State

c.  General Journal

Date / Accounts / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

Question 3:

a.  General Journal

Date / Accounts / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

b. Net Profit

Item / Increase/Decrease
Net Profit

c

Cash Payments Journal for Lyall Imports (extract)

Date 2016 / Details / Chq. No. / Bank / Sundries

Question 4: Speedy Cycles

a.

Calculation
$

b. Stock card for Competition Bicycles Cost Method – FIFO

Date
2001 / Details / In / Out / Balance
Qty / Price / Amt / Qty / Price / Amt / Qty / Price / Amt

c. General Journal

Date / Details / General
Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

d. Explanation

e. Explanation

f. Explanation

Question 5: Eric’s Electronics

a.

b. Sales Journal

Date / Debtor / Invoice No. / Cost of Sales / Sales / GST / Debtors Control

Purchases Journal

Date / Creditor / Invoice No. / Stock Control / GST / Creditors Control

Cash Receipts Journal

Date / Details / Rec.
No. / Bank / Disc.
Exp. / Debtors
Control / Cost of Sales / Sales / Sundries / GST

Cash Payments Journal (summary)

Date
2013 / Details / Chq.
No. / Bank / Disc.
Exp. / Creditors
Control / Stock Control / Wages / Insurance / Sundries / GST

General Journal

Date / Details / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

c.

Stock control

Date / Cross-reference / Amount
$ / Date
2013 / Cross-reference / Amount
$

GST Clearing

Date / Cross-reference / Amount
$ / Date
2013 / Cross-reference / Amount
$

d.

Eric’s Electronics

Cash Flow Statement (extract) for the month ended 30 April 2013

$ / $
Cash flow from operating activity
Net Cash Flows from Operations

Question 6: Peter’s Electrical Appliances

a. Characteristic

b. Explanation

Question 7

a. & b.

Stock Card English Red Rose

Date
2016 / Details / IN / OUT / BAL
Qty / Price
$ / Value
$ / Qty / Price
$ / Value
$ / Qty / Price
$ / Value
$
Dec 1 / Balance

c.

General Journal

General Ledger / Subsidiary Ledger
Date 2016 / Accounts / Debit
$ / Credit
$ / Debit
$ / Credit
$

d. Explanation

e.

Calculation
$

f. Explanation

Question 8: Handy Handbags

a. Stock card: Prestige Bag

Date
2016 / Details / IN / OUT / BAL
Qty / Price
$ / Value
$ / Qty / Price
$ / Value
$ / Qty / Price
$ / Value
$
Dec 1 / Balance / 20 / 80 / 1 600
9 / Invoice A20 / 40 / 90 / 3 600 / 20
40 / 80
90 / 5 200
14 / Inv. H 45-66 / 20
2 / 80
90 /
1 780 / 38 / 90 / 3 420

b. General Journal

General Ledger / Subsidiary Ledger
Date 2016 / Accounts / Debit
$ / Credit
$ / Debit
$ / Credit
$

c. Explanation

d.

Calculation
$

e. Explanation

f. General Journal

General Ledger / Subsidiary Ledger
Date 2016 / Accounts / Debit
$ / Credit
$ / Debit
$ / Credit
$

g. Explanation

h. Explanation

Question 9: Swan Electrics

a.

Date
2016 / Debtor’s Name / Invoice No. / Cost Price / Sales / GST / Total Debtors

b.

Cash Receipts Journal (extract)

Date 2016 / Details / Chq. No. / Bank / Sundries

c.

Debtor – J Barrow

Date / Cross-reference / Amount
$ / Date / Cross-reference / Amount
$

d. Explanation

e. Explanation

f.

GST Clearing

Date
2016 / Cross-reference / Amount
$ / Date / Cross-reference / Amount
$
Nov. 30 / Bank / 1 500 / Nov. 1 / Balance / 1 500
30 / Bank / 300 / 30 / Bank / 950
30 / Creditor’s control / 500 / 30 / Debtors’ control / 1 200

g. Balance Sheet

Statement of cash flows

Inflows
Outflows

h. General Journal

General Ledger / Subsidiary Ledger
Date / Particulars / Debit
$ / Credit
$ / Debit
$ / Credit
$

i.

Calculation
$

j. Accounting principle

k. Meaning

l.

Calculation
$

m. Justification

n. Justification

o. Explanation

Question 10: Wazza’s Tent World

a. Explanation

b. Cost of new tents (per unit)

c. Justification

d.

Item / Increase/Decrease
Net Profit

Explanation

Question 11: Quick De Silver Shorts

a.

Item / Qty / Cost / Sell Price / Sell Exp / NRV / Total Value
Florals
Two Thirds
Boxer Plus
Hugger
Total

b. Stock write-down

c. Effect

i.
ii.
iii.

d. General Journal

Date / Particulars / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

e. Explanation

Question 12: Hodges Horse Supplies

a. Calculation – Cost of one saddle

Calculation
$

b. Cost of Goods Sold

c.

Qualitative characteristic

Question 13: DAB Sports

a. Cost of scooter

b. Explanation

c. Explanation

Question 14: Sporting Life

a.

Calculation
$

b. Explanation

c. General Journal

General Ledger / Subsidiary Ledger
Date / Accounts / Debit / Credit / Debit / Credit

d. Calculation

Calculation
$

e. Explanations

i. The cost of the insurance
ii. The cost of the Sporting Life logo
iii. GST charged by the supplier

Question 15: Peter’s Electrical Appliances

General Journal

Date 2016 / Particulars / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

Question 16: Sarah’s Card Shop

a. Calculation – Value of stock 31 December 2016

Calculation
$

b. General Journal

Date / Details / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

c. Effects

Item / Higher/Lower / Amount
Net Profit
Assets
Owner’s equity

Question 17: Nature’s Clock

a.

Calculation
$

b. Justification

c. General Journal

Date 2016 / Details / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

Question 18: Gary’s Guitars

a. Calculation

Stock Loss / $

Stock write-down

Total Stock Value

Total

b. Explanation

c. General Journal

General Ledger / Subsidiary Ledger
Date / Accounts /

Debit

/ Credit / Debit / Credit
2015 / $ / $ / $ / $

d. Purchases Journal

Date

/ Creditor / Invoice No. / Stock / GST / Total Creditors

General Journal

General Ledger / Subsidiary Ledger
Date / Accounts /

Debit

/ Credit / Debit / Credit
2016 / $ / $ / $ / $

Stock card

IN / OUT / BAL
Date / Qty / Price / Value / Qty / Price / Value / Qty / Price / Value
2016

e. Explanation

f. Sales Journal

Date / Debtor / Invoice No. / Cost of sales / Sales / GST / Total Debtors

General Journal

General Ledger / Subsidiary Ledger
Date / Accounts /

Debit

/ Credit / Debit / Credit
2016 / $ / $ / $ / $


Question 19: Johnson Electrics

a. Stock Card: SUPA3

Date
2016 / Details / In / Out / Balance
Qty / Price / Value / Qty / Price / Value / Qty / Price / Value

b. General Journal

Date 2007 / Accounts / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

c. Explanation

d.

Calculation
$

e. Explanation

Accounting Principle -

f. General Journal

Date 2016 / Accounts / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

g.

Calculation
$

h. Explanation

Question 20: Johnson Electrics

a. Stock Card: SUPA3

Date
2016 / Details / In / Out / Balance
Qty / Price / Value / Qty / Price / Value / Qty / Price / Value

b. General Journal

Date 2007 / Accounts / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

c. Explanation

d.

Calculation
$

e. Explanation

Accounting Principle -

f. General Journal

Date 2016 / Accounts / General Ledger / Subsidiary Ledger
Debit / Credit / Debit / Credit

g.

Calculation
$

h. Explanation

Question 21

a Explanation

b Debtor – Playground Galore

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