General Journal questions are one of the most deceptively dangerous parts of the VCE Accounting exam. Many students feel confident when they see them because they appear familiar, procedural, and well practised during the year. Examiner’s Reports across multiple years show, however, that General Journal entries are one of the most common sources of avoidable mark loss, even among otherwise strong students.
The issue is not that students do not know how to write a General Journal entry. The issue is that they often do not interpret the transaction with enough care, or they apply a memorised entry without checking whether it actually matches the scenario provided.
Misinterpreting the transaction before recording anything
A recurring theme in Examiner’s Reports is that students rush to record an entry before fully understanding what the transaction represents. This is especially common when questions involve source documents such as invoices, credit notes, or remittance advices.
For example, students frequently record a credit purchase when the document actually represents the settlement of an accounts payable. Others record a cash sale when the transaction is a sale on credit. These errors occur because students focus on surface cues such as the presence of a dollar amount or a familiar layout, rather than asking the fundamental accounting question: what event has actually occurred for the business?
Once the transaction is misinterpreted, the entire entry is incorrect, even if the debit and credit format is technically sound.
Confusing balance day adjustments with transactions during the period
Another consistent source of error is failure to distinguish between transactions that occur during the accounting period and adjustments required at balance day. Examiner’s Reports note that students often apply balance day logic to transactions that have already been recorded, or fail to make adjustments that are explicitly required.
This is particularly evident in questions involving prepaid expenses, accrued expenses, depreciation, and inventory adjustments. Students may calculate the correct amount but apply it to the wrong account, or record it at the wrong time.
High-scoring responses demonstrate an understanding that balance day adjustments exist to ensure reports reflect the correct financial position at a specific date. Students who treat all adjustments as interchangeable entries lose marks quickly.
Incorrect account titles and Study Design language
General Journal entries are marked with strict attention to account titles. Examiner’s Reports repeatedly highlight that students lose marks for using informal or incorrect titles, even when the logic of the entry is otherwise sound.
Examples include using “Stock” instead of “Inventory”, “Profit” instead of “Net Profit”, or creating account names that do not exist in the Study Design. These errors signal lack of alignment with the current curriculum and are penalised accordingly.
Students who consistently use Study Design terminology not only avoid these losses but also reduce cognitive load under exam pressure.
Narrations and explanations are not optional extras
Where narrations are required, many students either omit them or write vague descriptions that do not explain the transaction. Examiner’s Reports note that narrations are assessed as part of demonstrating understanding, not as a formality.
A narration that simply restates the debit and credit does not add value. High-quality narrations briefly explain the nature of the transaction and why the accounts have been affected in that way. When narrations are missing or unclear, marks are deducted even if the entry itself is correct.
Compound errors caused by earlier mistakes
General Journal questions often feed into later parts of the same question, such as ledger posting or report preparation. Examiner’s Reports show that students sometimes abandon consistency once they realise an earlier error has occurred.
In many cases, consequential marking would allow marks to be awarded if the student carried their incorrect figure through logically. Students who change figures mid-way or mix correct and incorrect amounts often lose more marks than necessary.
Discipline and consistency matter, even when a mistake has been made.
Why these errors persist year after year
These errors persist because General Journal questions feel familiar. Familiarity breeds speed, and speed leads to assumption. The VCAA exploits this by embedding subtle distinctions in otherwise standard-looking tasks.
Students who slow down, read the transaction carefully, and identify the accounting issue before writing anything consistently outperform students who rely on muscle memory.
How ATAR STAR addresses General Journal performance
At ATAR STAR, General Journal questions are taught as interpretation tasks first and recording tasks second. Students are trained to pause, identify the accounting event, and check whether it is a transaction or an adjustment before committing to an entry.
This approach benefits students who already have strong technical skills but lose marks through misinterpretation, as well as students who lack confidence and default to memorised templates.