ACCOUNTING VCE UNITS 1&2 NEVILLE BOX WORKBOOK
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Accounting VCE Units 1 & 2
Workbook
Seventh edition
Neville Box
Publisher: Olive McRae
Proofreader: Katie Lawry
Cover design: Nikki M. Group
Text: design: Paul Ryan/Nikki M. Group
Typesetter: Straive
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First published in 2024 by Matilda Education Australia, an imprint of Meanwhile Education Pty Ltd
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Copyright © Neville Box, 2024
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Publication data
Author: Neville Box
Title: AccountingVCEUnits1&2Workbook
ISBN: 9780655094180
Printed in Malaysia by Vivar Printing, October-2024
Accounting formulae
Refer back to your Student Book for additional explanation.
Chapter 3
Assets = liabilities + owner’s equity
Owner’s equity = assets – liabilities
Working capital = current assets – current liabilities
Working capital ratio = Current assets Current liabilities
Chapter 6
Rate of return = Profit earned Amount invested
Dividend yield = Dividend share price Current market price
Chapter 8
The format of the two accounting reports may be summarised as follows. Statement of receipts and payments:
Cash receipts – cash payments = excess of receipts over payments + bank balance at beginning = bank balance at end
Income statement:
Revenue – expenses = profit for the period
Chapter 10
ROI = Net profit Average capital
Chapter 12
Break-even (in units) = Fixed costs Selling price − Variable costs
Profit = (SP × units sold) – (VC × units sold) – FC
Break-even + profits (in units) = Fixed costs + Profit Selling price − Variable costs
Chapter 13
Net profit margin = Net profit Total sales
Total sales is used with service firms; Net sales is used for trading business as they can have sales returns
Return on owner’s investment = Net profit Average capital
Rate of return = Net profit Average total assets
Working capital ratio = Current assets Current liabilities
Chapter 17
Cost price of inventory = Selling price × 100 100 + Mark-up
Chapter 18
Inventory turnover = Average inventory Costs of goods sold × 365 days
Chapter 19
Accounts receivable turnover = Average accounts receivable
Net credit sales + GST × 365
Accounts payable turnover = Average accounts payable
Chapter 20
Net profit margin = Net profit Net sales
Net credit purchases + GST × 365
Return on owner’s investment = Net profit
Average capital (in ch13 as well)
Chapter 22
Straight line depreciation: Depreciation expense = Cost – Residual value Estimated life
Annual depreciation rate = Depreciation p.a.
Cost of asset
Asset turnover = Net sales
Average total assets
Return on assets = Net profit
Average total assets
Chapter 23
Reducing balance depreciation: Fixed percentage × carrying value of the asset
Depreciation expense = Cost – Residual value
Useful life
Qualitative characteristics
ETHICAL CONSIDERATIONS
b c Simple balance sheet a McColgan’s Meats
Owner’s equity = assets − liabilities
b McColgan’s Meats: Balance sheet as at 31 July 2028
c McColgan’s Meats: Balance sheet as at 31 July 2028
d Treatment of family home
Classified balance sheet
a For part a, simply list the dollar amounts under the appropriate heading. Accurate Editorial: Capital
c Accurate Editorial: Balance sheet as at 31 August 2028
Current assets
Current liabilities
Working capital
WC ratio
Balance sheet and liquidity
a Nick’s Pizza Supreme: Balance sheet as at 30 September 2028
Non-current assets
equity
Balance sheet and liquidity
a Suburban Lawn Mowing: Balance sheet as at 31 October 2028
b Treatment of loan
TC Plumbing: Balance sheet as at 01 August 2028
Plumbing: Balance sheet as at 02 August 2028
TC Plumbing: Balance sheet as at 03 August 2028
TC Plumbing: Balance sheet as at 04 August 2028
b Accounting equations
01-Aug-28
02-Aug-28
03-Aug-28 04-Aug-28
Frank Serratore Landscaper: Balance sheet as at 30 September 2028
Frank Serratore Landscaper: Balance sheet as at 01 October 2028
Frank Serratore Landscaper: Balance sheet as at 02 October 2028
equity
Frank Serratore Landscaper: Balance sheet as at 03 October 2028
Non-current assets Owner’s equity
Frank Serratore Landscaper: Balance sheet as at 04 October 2028
assets $ $
Non-current assets
Owner’s equity
Frank Serratore Landscaper: Balance sheet as at 05 October 2028
Non-current assets Owner’s equity
Transactions with opening balances
Glenroy Laundry: Balance sheet as at 31 March 2028
Glenroy Laundry: Balance sheet as at 01 April 2028
equity
$
Non-current assets Owner’s equity
Glenroy Laundry: Balance sheet as at 02 April 2028
Glenroy Laundry: Balance sheet as at 03 April 2028
Non-current assets Owner’s equity
Glenroy Laundry: Balance sheet as at 04 April 2028
Non-current assets
Glenroy Laundry: Balance sheet as at 05 April 2028
Owner’s equity
Non-current assets
Owner’s equity
Part 1
Part 2 a & b
Question 1 (3 marks)
Question 2 (2 marks)
Question 3 (2 marks)
