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Course: VCE Accounting Units 3 and 4 - 3 Mock Packs
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Curriculum

VCE Accounting Units 3 and 4 - 3 Mock Packs

Getting Started - VCE ACCT U34 - 3 Mock Packs

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VCE Accounting Guide - VCE ACCT U34 - 3 Mock Packs

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Area of Study Skills - VCE ACCT U34 - 3 Mock Packs

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Mock Exam 1 of 3 - VCE ACCT U34

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Mock Exam 2 of 3 - VCE ACCT U34

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Mock Exam 3 of 3 - VCE ACCT U34

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Unit 3 - Financial Accounting for a Trading Business - VCE Accounting Units 3 and 4 - 3Pack

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Unit 4 - Control and Reporting - VCE Accounting Units 3 and 4 - 3Pack

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Exam Technique - VCE Accounting Units 3 and 4 - 3Pack

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After the Exam - VCE ACCT U34 - 3 Mock Packs

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Text lesson

VCE-ACCT-U34 6.3.1 📋 – Mock Exam 3: Q1 Adjusting Entries and Financial Statements

Mock Exam 3 — Question 1
Metro Interiors | Complete on paper
✎ Work on paper. No notes. No phone. Set a 120-minute timer (VCAA allows 15 minutes reading time beforehand). Do not open model answers until every question is complete.
Metro Interiors  |  Owner: Priya Sharma  |  Trading / furniture retail  |  GST 10%  |  Perpetual Identified Cost, monthly reporting
Trial Balance at 31 March 2026 (before adjustments)

Account Debit $ Credit $
Accounts Receivable 46,200
Inventory 38,400
Equipment 96,000
Accumulated Depreciation – Equipment 28,800
Sales 74,800
Cost of Sales 37,400
Wages 12,600
Prepaid Insurance 3,600

Additional information: (1) Equipment is depreciated using the reducing-balance method at 15% per annum. New equipment costing $18,000 (excl. GST) was purchased on 1 January 2026. (2) The Prepaid Insurance balance of $3,600 (excl. GST) represents insurance paid on 1 January 2026 for 12 months commencing 1 January. (3) An electricity bill of $660 (incl. GST) was received on 31 March but has not yet been paid or recorded.

Question 1  (14 marks) — Adjusting Entries and Financial Statements
(a)6 marks
Record all necessary adjusting entries in the General Journal at 31 March 2026. Narrations are not required.
Tip: Four adjustments: (1) Depreciation – two calculations needed (old equipment on carrying value, new equipment pro-rated 3 months). (2) Insurance used portion – $3,600 ÷ 12 = $300/month × 3 months = $900. (3) Electricity accrual – $660 ÷ 11 = $60 GST, $600 excl. GST expense.
(b)4 marks
Prepare the Income Statement for Metro Interiors for the month ended 31 March 2026, incorporating all adjustments.
Tip: Net Sales − COGS = GP. GP − all operating expenses (including depreciation, insurance used, electricity accrual) = Net Profit.
(c)4 marks
Prepare the Non-Current Assets section of the Balance Sheet as at 31 March 2026, after all adjustments.
Tip: Equipment at cost $96,000. Less Updated Accumulated Depreciation (opening $28,800 + March charge). = Carrying Value.