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VCE Accounting 2013–2016
Written examination
Examination specifications
Overall conditions
The examination will be sat at a time and date to be set annually by the Victorian Curriculum and Assessment
Authority. VCAA examination rules will apply. Details of these rules are published annually in the VCE and
VCAL Administrative Handbook.
There will be 15 minutes reading time and 2 hours writing time.
The examination will be marked by a panel appointed by the VCAA.
The examination will contribute 50 per cent to the Study Score.
Content
The VCE Accounting Study Design 2013–2016 is the document for the development of the examination. The
study design includes the Characteristics of the Study (pages 12–16). Questions will be based on the key
knowledge and key skills that underpin the outcomes in Units 3 and 4. Students will be required to apply the
knowledge and skills of the accounting processes undertaken in Units 3 and 4.
Students will not be required to use information and communications technology (ICT) in the examination.
Students will not be required to undertake calculations relating to financial indicators in the examination;
however, the underpinning knowledge, interpretation and analysis associated with these indicators are
examinable.
Students will not be required to prepare graphical representations in the examination; however, the
explanation and interpretation of graphical representations are examinable.
Format
The examination will consist of a series of short answer and extended response questions. These may include
a variety of item types, including scenarios, questions with multiple parts, short answer questions and
extended response questions.
All questions in the examination will be compulsory.
The total marks for the examination will be 100.
The examination will be in the form of a question book and an answer book.
Approved materials and equipment
• normal stationery requirements (pens, pencils, highlighters, erasers, sharpeners and rulers)
• one scientific calculator
Advice
During the 2013–2016 accreditation period for the VCE Accounting Study Design, examinations will be
prepared according to the examination specifications above. The examination will assess a representative
sample of the key knowledge and key skills from Unit 3 and Unit 4.
© VICTORIAN CURRICULUM AND ASSESSMENT AUTHORITY 2012
July 2012
The following sample examination is intended to demonstrate the format and type of questions that teachers
and students can expect on the end-of-year Accounting examination. Teachers and students should be
aware of the Characteristics of the Study, including accounting principles and qualitative characteristics, as
described on pages 12–16 of the study design.
The VCAA does not publish answers for sample examinations.
The following documents should be referred to in relation to the VCE Accounting examination.
• VCE Accounting Study Design 2013–2016
• VCE Accounting Assessment Handbook 2013–2016
• VCAA Bulletin VCE, VCAL and VET
It is recommended that students write in pencil when answering questions that involve calculations.
VCE Acounting (Specifications and sample) – July 2012
2
Victorian Certificate of Education
Year
ACCOUNTING
Written examination
Day Date
E
L
Reading time: *.** ** to *.** ** (15 minutes)
Writing time: *.** ** to *.** ** (2 hours)
P
QUESTION BOOK
S
M
A
Structure of book
Number of
questions
Number of questions
to be answered
11
11
Number of
marks
100
• Students are permitted to bring into the examination room: pens, pencils, highlighters, erasers,
sharpeners, rulers and one scientific calculator.
• Students are NOT permitted to bring into the examination room: blank sheets of paper and/or white
out liquid/tape.
Materials supplied
• Question book of 10 pages.
• Answer book of 17 pages.
Instructions
• Write your student number in the space provided on the front page of the answer book.
• Answer all questions in the answer book.
• All written responses must be in English.
At the end of the examination
• You may keep this question book.
Students are NOT permitted to bring mobile phones and/or any other unauthorised electronic
devices into the examination room.
© VICTORIAN CURRICULUM AND ASSESSMENT AUTHORITY 2012
July 2012
ACCNT EXAM QB (SAMPLE)
2
July 2012
Question 1 (2 marks)
Define the term ‘double entry accounting system’.
Question 2 (11 marks)
Mark Brown owns and operates Mark’s Mega Movers. He has provided his accountant with the following
graph displaying details of his Non-Current Assets. He purchased them all on 1 July 2009.
45 000
40 000
Historical Cost
35 000
Depreciation – 2009–10
30 000
25 000
Depreciation – 2010–11
20 000
Depreciation – 2011–12
15 000
Depreciation – 2012–13
10 000
5 000
0
a.
Accumulated Depreciation
– 30 June 2013
Construction
Equipment
Computer
Equipment
Tools and Fixtures and
Equipment
Fittings
Using the graph, identify and justify the selection of the depreciation method used for the
• Construction Equipment
• Fixtures and Fittings.
4 marks
b. Given that the Construction Equipment was depreciated using a rate of 30% per annum, calculate and
show how the Construction Equipment would be reported in the Balance Sheet as at 30 June 2013.
3 marks
c.
Mark stated ‘we can change methods of depreciation next year if we want to’. Using an accounting
principle and a qualitative characteristic, explain whether this would be advisable.
4 marks
Question 3 (15 marks)
Courtney Hayles is the owner of Hayles Home Entertainment, a business that sells home entertainment
products. At 1 June 2013 the business had the following debtors.
$
J Simon
880
M Avis
2 200
3 080
Question 3 – continued
July 2012
3
ACCNT EXAM QB (SAMPLE)
Extracts of the Cash Receipts Journal and Sales Journal for June 2013 are provided below.
Cash Receipts Journal
Date
2013
Details
Rec.
No.
Bank
1 June Sales
234
1 320
3 June J Simon
235
792
9 June GST Clearing
236
3 600
14 June Sales
237
1 650
16 June S Slater
238
594
21 June M Avis
239
1 000
28 June Sales
240
1 320
Totals to date
10 276
Disc.
Exp.
Debtors
Control
Cost of
Sales
Sales
800
88
Sundries
1 200
GST
120
880
3 600
66
1 000
1 500
150
800
1 200
120
2 600
3 900
660
1 000
154
2 540
3 600
390
Sales Journal
Date
2013
Debtor
Invoice
Number
Cost of
Sales
Sales
GST
Debtors
Control
4 June
S Slater
123
400
600
60
660
10 June
J Simon
124
600
900
90
990
19 June
S Slater
125
300
450
45
495
22 June
J Simon
126
200
300
30
330
1 500
2 250
225
2 475
Totals to date
Additional information
• On 30 June, Courtney transferred $10 000 from her personal bank account to the business bank
account (as noted on the Bank Statement).
• On 30 June, the business was advised that the amount outstanding for Debtor – M Avis, should be
written off (Memo 5).
• On 30 June, J Simon returned the goods he had purchased on 22 June, because they were faulty
(CN 538).
a.
Record the additional information in the appropriate journals. Total the journals where appropriate.
Narrations are not required.
5 marks
b. Complete the Debtors Subsidiary Ledger for Debtor – J Simon as it would appear after all journals have
been posted for June 2013.
You are required to balance the account.
4 marks
c.
Many businesses use control accounts and subsidiary ledgers in their accounting systems.
Discuss the benefits and limitations of using control accounts and subsidiary ledgers.
6 marks
TURN OVER
ACCNT EXAM QB (SAMPLE)
4
July 2012
Question 4 (19 marks)
Chris Laurence owns and operates Chrisso’s Fitness Warehouse, a small business selling a variety of fitness
equipment.
Features of the business’s accounting system include the following.
• The business sells to customers on both a cash and credit basis. Credit is offered to reliable customers at
credit terms of 5/14, n/30. The perpetual method of stock recording and the FIFO cost assignment method
are used.
• Stock is marked up at a rate of 50%.
• The business prepares financial reports at the end of each month.
Chris has recorded all transactions into the relevant journals. A summary of these is provided.
Cash Payments Journal (summary)
Date
2013
Details
Chq.
No.
30 June Totals to date
Bank
Disc.
Rev.
34 200
1 300
Creditors Stock
Control Control
27 000
4 000
Wages
Sundries
GST
3 000
1 000
500
Sales Journal (summary)
Date
2013
30 June
Debtor
Invoice
Number
Totals to date
Cost of
Sales
Sales
GST
Debtors
Control
30 000
45 000
4 500
49 500
Purchases Journal (summary)
Date
2013
30 June
Creditor
Invoice
Number
Totals to date
Stock
Control
GST
Creditors
Control
29 000
2 900
31 900
Cash Receipts Journal (summary)
Date
2013
Details
Rec.
No.
30 June Totals to date
Bank
Disc.
Exp.
Debtors
Control
Cost of
Sales
Sales
Sundries
GST
39 300
700
18 000
12 000
20 000
–
2 000
At the end of the reporting period, Chris realised that the following documents had not been recorded.
CFW
Memo 9
CFW
Invoice CFW234
Date: 19 June 2013
Charge to: Rob’s Gym
Sale: 2 ZX7 Treadmills
Amount
GSTInvoice
$4200
$420$4620
Terms: 5/14, n/30
Date: 27 June 2013
Instruction: 1 ZX7 Treadmill, at a cost of $1500,
was used at a recent fitness expo and will now
be used solely for advertising purposes.
CFW
Receipt 105
Date: 28 June 2013
Details: Received payment in full from Rob’s
Gym for invoice CFW234.
Question 4 – continued
July 2012
a.
5
ACCNT EXAM QB (SAMPLE)
Explain what is meant by the FIFO cost assignment method.
2 marks
b. Update and total the relevant journals with the information contained in the above documents.
Narrations are not required.
5 marks
c.
Explain why the stock referred to in Memo 9 should be treated as an expense.
2 marks
Following a physical count of the Model ZX7 Treadmills at 30 June 2013, Chris prepared the following
memo.
CFW
Memo 10
Date: 30 June 2013
Details: A physical stocktake showed 1 ZX7
Treadmill on hand.
Chris provided the following Stock Card for the ZX7 Treadmill.
Stock Item: ZX7 Treadmill
Location: E4
Date
2013
Supplier: Treadies
Cost Assignment Method: FIFO
Details
IN
Qty
Cost
OUT
Total
Qty
Cost
BALANCE
Total
Qty
Cost
Total
8
1 300
10 400
1 June
Balance
8 June
Inv. CFW230
4
1 300
5 200
4
1 300
5 200
12 June
Rec. 103
3
1 300
3 900
1
1 300
1 300
18 June
Inv. ZX42
1
4
1 300
1 500
1 300
6 000
4
1 500
6 000
d. Complete the Stock Card for ZX7 Treadmills with all relevant transactions up to and including
30 June 2013.
3 marks
e.
Prepare the General Journal entry to record the necessary adjusting entry for stock at 30 June 2013.
A narration is required.
3 marks
f.
Calculate the Adjusted Gross Profit on the sale of ZX7 Treadmills for the month of June 2013.
4 marks
TURN OVER
ACCNT EXAM QB (SAMPLE)
6
July 2012
Question 5 (5 marks)
a. Define net realisable value (NRV).
2 marks
b. Explain the effects on the financial reports if a business fails to recognise NRV when valuing its stock.
3 marks
Question 6 (18 marks)
Tim owns and operates a tool shop, Tim’s Tools. He has provided you with the following budgeted
information from the cash journals for the year 1 July 2013 to 30 June 2014.
Cash Receipts Journal
• Bank
• Discount Expense
• Debtors Control
• Cost of Sales
• Sales
• GST
311 200
1 700
180 900
60 000
120 000
12 000
Cash Payments Journal
• Bank
159 500
• Discount Revenue
1 500
• Creditors Control
45 000
• Stock Control
24 000
• Wages
53 000
• Sundries
Drawings
6 000
Expenses
15 000
Fixtures and Fittings
3 000
Customs Duties
2 000
Prepaid Rent Expense
8 000
Accrued Wages
2 000
• GST
3 000
Additional information (expected for year)
• Bank balance at 1 July 2013 was $26 800
• Credit Sales 50% greater than Cash Sales
• Stock marked up by 100%
• Stock Loss to be 3% of total sales
• Sales Returns to be 5% of total sales
• Accrued interest of $200 relating to a term deposit
• Wages owing 30 June 2014 estimated to be $3100
• Balance in Prepaid Rent expense will be $1000 as at 30 June 2014
a.
Prepare a Budgeted Income Statement for the year ending 30 June 2014.
9 marks
b. Prepare a Budgeted Cash Flow Statement for the year ending 30 June 2014.
6 marks
Tim is pleased with the level of expected profit and cash indicated by the budgets; however, he is concerned
that these results will not be achieved in 12 months time.
c. Explain how Tim could use these budgets to monitor his progress.
3 marks
July 2012
7
ACCNT EXAM QB (SAMPLE)
Question 7 (4 marks)
A business owner has stated, ‘I am not sure I want to make a profit this year. Last year I made a loss but my
bank balance increased by $8900 despite having no new loans or capital contributions’.
Explain, giving two examples, how this could occur.
Question 8 (8 marks)
On 1 October 2013, Gen Domestics traded in its old delivery van for a new delivery van from Club Motors.
The old delivery van was purchased at the beginning of 2007 for $28 000 and had a carrying value at
1 October 2013 of $3500. Details of the purchase and trade-in for the new delivery van are documented in
the invoice below.
Club Motors
Date
1 October 2013
Invoice no.
79
Sold to
Gen Domestics
DESCRIPTION$
a.
Delivery Van
plus GST
Less trade-in
42 000
4 200
46 200
2 000
TOTAL PRICE
Terms: Net 30 days
44 200
Show how the following accounts will appear in the General Ledger after all entries have been posted.
• Delivery Van
• Accumulated Depreciation – Delivery Van
• Disposal of Delivery Van
You are not required to balance the accounts.
6 marks
b. Explain, using the information from Gen Domestics, why the profit or loss on disposal of the van
occurred.
2 marks
TURN OVER
ACCNT EXAM QB (SAMPLE)
8
July 2012
Question 9 (6 marks)
A business owner is concerned that her business’s cash flow and liquidity are deteriorating, so her accountant
has provided some information regarding the business’s short-term financial position.
Indicator
2010
2011
2012
Working Capital Ratio
2.15:1
2.25:1
2.79:1
Quick Asset Ratio
1.42:1
1.05:1
0.79:1
Creditors Turnover
17 days
16 days
15 days
Stock Turnover
58 days
79 days
98 days
Debtors Turnover
47 days
44 days
42 days
The business’s credit terms have been 2/14, n/30 since 2009.
Suppliers’ credit terms are all n/30.
a. Explain how it is possible that the Working Capital Ratio trend is favourable while the Quick Asset
Ratio trend is unfavourable.
2 marks
b. Suggest two types of information, other than financial indicators, that could be useful to the business
owner in analysing the performance of her business.
2 marks
c.
State two strategies, excluding additional advertising, that the business owner could implement to improve
the Stock Turnover (that is, reduce Stock Turnover days) without affecting the Gross Profit margin.
2 marks
July 2012
9
ACCNT EXAM QB (SAMPLE)
Question 10 (8 marks)
Belinda Brown commenced business on 1 January 2013 under the name of Bubble Baths. Her accountant
provided the following Pre-adjustment Trial Balance at 30 June 2013.
Bubble Baths
Pre-adjustment Trial Balance as at 30 June 2013
Account
Debit
Credit
Capital
26 800
Cash at Bank
12 360
Cost of Sales
76 000
Creditors Control
Debtors Control
Discount Expense
63 000
34 000
480
Discount Revenue
Drawings
Freight Inward
800
32 800
1 000
GST Clearing
Interest Expense
20
2 400
Loan
Prepaid Advertising Expense
42 000
1 800
Prepaid Sales Revenue
1 000
Sales
152 000
Shop Fittings
2 000
Stock Control
77 500
Vehicle
46 000
Wages Expense
24 000
297 980
297 980
The accountant noted the following.
• The Prepaid Advertising Expense relates to six advertisements (one per month for six months) in ‘Beautiful
Bathrooms’ magazine, commencing June 2013.
• Wages incurred for the six-month period are $25 000.
• Prepaid Sales Revenue represents a deposit on a custom-made bath, which was delivered to the customer
on 30 June 2013.
a.
Prepare General Journal entries to record these adjustments at 30 June 2013.
Narrations are not required.
6 marks
b. Explain the relationship between the Going Concern principle and the need for balance day adjustments.
2 marks
TURN OVER
ACCNT EXAM QB (SAMPLE)
10
July 2012
Question 11 (4 marks)
Buckles and Belts has provided the following information, which was extracted from the Cash Flow
Statement Variance Report for the month ended 31 October 2013.
Budgeted
Actual
Variance
6 000
7 500
1 500
F
Receipts from Debtors
95 000
90 000
5 000
U
Loan
(9 000)
(8 000)
1 000
F
300
375
75
U
Cash Sale of Vehicle
Interest
a.
Fav/Unfav
Referring to the extract above, state whether the interest is a cash inflow or cash outflow.
Explain your answer.
2 marks
b. Explain how Buckles and Belts could use the information contained in the extract from the Cash Flow
Statement Variance Report.
2 marks
END OF QUESTION BOOK
Victorian Certificate of Education
Year
SUPERVISOR TO ATTACH PROCESSING LABEL HERE
STUDENT NUMBER
Letter
Figures
Words
ACCOUNTING
Written examination
Day Date
Reading time: *.** ** to *.** ** (15 minutes)
Writing time: *.** ** to *.** ** (2 hours)
ANSWER BOOK
Instructions
•
•
•
•
A question book is provided with this answer book.
Answer all questions in the spaces provided in this book.
Write your student number in the space provided above on this page.
Refer to Instructions on the front cover of the question book.
Students are NOT permitted to bring mobile phones and/or any other unauthorised electronic
devices into the examination room.
© VICTORIAN CURRICULUM AND ASSESSMENT AUTHORITY 2012
July 2012
ACCNT EXAM AB (SAMPLE)
2
This page is blank
July 2012
July 2012
3
ACCNT EXAM AB (SAMPLE)
Question 1 (2 marks)
Definition
Question 2 (11 marks)
a.
4 marks
Construction Equipment
Method of depreciation
Fixtures and Fittings
Method of depreciation
Justification
b.
3 marks
Calculation
Mark’s Mega Movers
Balance Sheet (extract) as at 30 June 2013
Non-Current Assets
$
$
Question 2 – continued
TURN OVER
ACCNT EXAM AB (SAMPLE)
4
July 2012
c.
4 marks
Explanation
Question 3 (15 marks)
a.
Cash Receipts Journal
Date
2013
Details
5 marks
Rec.
No.
Bank
1 June Sales
234
1 320
3 June J Simon
235
792
9 June GST Clearing
236
3 600
14 June Sales
237
1 650
16 June S Slater
238
594
21 June M Avis
239
1 000
28 June Sales
240
1 320
Totals to date
10 276
Disc.
Exp.
Debtors
Control
Cost of
Sales
800
88
Sales
Sundries
1 200
GST
120
880
3 600
66
1 000
1 500
150
800
1 200
120
2 600
3 900
660
1 000
154
2 540
3 600
390
Question 3 – continued
July 2012
5
ACCNT EXAM AB (SAMPLE)
Sales Journal
Date
2013
Debtor
Invoice
Number
Cost of
Sales
Sales
GST
Debtors
Control
4 June
S Slater
123
400
600
60
660
10 June
J Simon
124
600
900
90
990
19 June
S Slater
125
300
450
45
495
22 June
J Simon
126
200
300
30
330
1 500
2 250
225
2 475
Totals to date
General Journal
Date
2013
Details
General Ledger
Debit
Credit
Subsidiary Ledger
Debit
Credit
Question 3 – continued
TURN OVER
ACCNT EXAM AB (SAMPLE)
6
July 2012
b.
4 marks
Debtor – J Simon
Date
2013
c.
Discussion
Cross-reference
Amount
Date
2013
Cross-reference
Amount
6 marks
July 2012
7
ACCNT EXAM AB (SAMPLE)
Question 4 (19 marks)
a.
2 marks
Explanation
b.
Cash Payments Journal (summary)
Date
2013
Details
Chq.
No.
30 June
Totals to date
5 marks
Bank
Disc.
Rev.
34 200
1 300
Creditors Stock Wages Sundries
Control Control
27 000
4 000
3 000
1 000
GST
500
Sales Journal (summary)
Date
2013
30 June
Debtor
Invoice
Number
Totals to date
Cost of
Sales
30 000
Sales
GST
Debtors
Control
45 000
4 500
49 500
Purchases Journal (summary)
Date
2013
30 June
Creditor
Totals to date
Invoice
Number
Stock
Control
29 000
GST
Creditors
Control
2 900
31 900
Question 4 – continued
TURN OVER
ACCNT EXAM AB (SAMPLE)
8
July 2012
Cash Receipts Journal (summary)
Date
2013
30 June
Details
Rec.
No.
Totals to date
Bank
Disc.
Exp.
39 300
700
Debtors Cost of
Control Sales
18 000
12 000
Sales
Sundries
GST
20 000
–
2 000
General Journal
Date
2013
c.
Details
General Ledger
Debit
Credit
Subsidiary Ledger
Debit
Credit
2 marks
Explanation
Question 4 – continued
July 2012
9
ACCNT EXAM AB (SAMPLE)
d.
3 marks
Stock Item: ZX7 Treadmill
Location: E4
Date
2013
Supplier: Treadies
Cost Assignment Method: FIFO
Details
IN
Qty
Cost
OUT
Total
Qty
Cost
BALANCE
Total
Qty
1 June Balance
8 June Inv. CFW230
12 June Rec. 103
18 June Inv. ZX42
4
1 500
Cost
Total
8
1 300
10 400
4
1 300
5 200
4
1 300
5 200
3
1 300
3 900
1
1 300
1 300
1
4
1 300
1 500
1 300
6 000
6 000
e.
General Journal
Date
2013
3 marks
Details
General Ledger
Debit
Credit
Subsidiary Ledger
Debit
f.
Credit
4 marks
Calculation
Adjusted Gross Profit
$
TURN OVER
ACCNT EXAM AB (SAMPLE)
Question 5 (5 marks)
a.
10
July 2012
2 marks
Definition
b.
Explanation
3 marks
July 2012
11
ACCNT EXAM AB (SAMPLE)
Question 6 (18 marks)
a.
9 marks
Tim’s Tools
Budgeted Income Statement for the year ending 30 June 2014
$
$
Question 6 – continued
TURN OVER
ACCNT EXAM AB (SAMPLE)
12
July 2012
b.
6 marks
Tim’s Tools
Budgeted Cash Flow Statement for the year ending 30 June 2014
$
$
Question 6 – continued
July 2012
c.
13
ACCNT EXAM AB (SAMPLE)
3 marks
Explanation
Question 7 (4 marks)
Explanation
TURN OVER
ACCNT EXAM AB (SAMPLE)
14
July 2012
Question 8 (8 marks)
a.
6 marks
Delivery Van
Date
2013
Cross-reference
Amount
Date
2013
Cross-reference
Amount
Accumulated Depreciation – Delivery Van
Date
2013
Cross-reference
Amount
Date
2013
Cross-reference
Amount
Cross-reference
Amount
Disposal of Delivery Van
Date
2013
b.
Explanation
Cross-reference
Amount
Date
2013
2 marks
July 2012
Question 9 (6 marks)
a.
15
ACCNT EXAM AB (SAMPLE)
2 marks
Explanation
b.
2 marks
Other information 1
Other information 2
c.
2 marks
Strategy 1
Strategy 2
TURN OVER
ACCNT EXAM AB (SAMPLE)
16
July 2012
Question 10 (8 marks)
a.
General Journal
Date
2013
b.
Explanation
6 marks
Particulars
General Ledger
Debit
$
Credit
$
Subsidiary Ledger
Debit
$
Credit
$
2 marks
July 2012
17
Question 11 (4 marks)
a.
ACCNT EXAM AB (SAMPLE)
2 marks
Cash Inflow or Cash Outflow
Explanation
b.
2 marks
Explanation
END OF ANSWER BOOK