random questions about accg (1 Viewer)

[clairegirl]

whats expense incurred


(i know what a dumb question)

 

[CrashOveride]

when you basically have an expense i.e. you incur it.

with the ants pants, some minor things:

1. u know when on july19 Bos returns 2 things and a freight allownace of $15, do we include the $15 just with the other sales returns?

2. for like july4 jimmy barnes, we put his thing in cash receipts but we cant really post anywhere. We can only post it as part of the total to the general ledger at end of month ? (the answers to week1 already had a tick in the ref. column as if posted somewhere ><" ) this also applies for things like the insurance payment

 

[Sweet_Lemon]

tat's expense that you incurred and not yet paid? Eg, wages n salaries?

 

[clairegirl]

thanx guys, lol (im soo starting from scratch)

sorry i havn't done the antz pants thing yet... i will on monday and tuesday though

situation: the period for which rent has been collected in advance, totalling $800, has expired.

(revenue recieved in advanced)

Why is it that the liability is overstated and that revenue is understated.

 

[Tabris]

Expenses incurred means when it happens, as opposed to when u pay it

For example, i pay 800 in advance for 10 days rent it is prepaid, and therefore an asset.

In order to be recognised as a rent expense, 10 days must expire and the prepaid rent now becomes an expense.

This is because the expense has not yet incurred (happened) until after the 10th day when the rent is due

Under this system it is recognised when it is incurred as opposed to cash basis, that is, it is incurred when u pay 800


When someone pays u in advance

Dr Cash at bank 800
Cr unearned revenu 800
(receive rent in advance)

When the periods expired, meaning the revenue is earned

Dr Unearned revenue 800
Cr revenue 800
(Revenue has now been earned and the unearned revenue is balanced out)

The reason why revenues are understated and liabilities overstated lies in the 2nd journal entry

1) If u dont reduce liabilities by debiting unearned revenue, then u are not decreasing the liabilities as it should, therefore liabilities are overstated

2) If u dont increase revenue by crediting the revenue account, then revenue accoutns are understated

P.S whats ANTZ PANTS?

Anyone got experience or know what was in last years ACCG101 exam? Heard they dont change much,

 

[redruM]

dig up the old threads. the test was a bit too much of theory imo. and some questions just required common sense rather than accounting knowledge.

 

[CrashOveride]

oi did they give out a JUNE BANK RECONCILIATION sheet in lectures?

can some1 scan it plzzzzzzzzzz ><

 

[clairegirl]

sorry crashride i don't have it

Another question:
How do you know which accounts should be closeD?

 

[redruM]

sorry crashride i don't have it

Another question:
How do you know which accounts should be closeD?

from memory you close off things to the profit and loss summary account. so anything that aids in profit or loss. revenue, expenses, etc.