9706_m21_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2021
Paper:
1
Variant:
2
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6
The bank statement of a business showed a credit balance of $4520. This did not agree with the cash book. The following were discovered. Bank charges of $89 had not been entered in the cash book. There were unpresented cheques paid to suppliers of $680. A dishonoured cheque for $210 appeared on the bank statement, but was not shown...
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
9
A business has calculated its draft profit for the year as $15 000. The following were then discovered. General expenses were understated by $600. The sales journal total of $55 690 had been posted to the sales account as $56 590. Repairs to vehicles of $1100 had been entered in the vehicles (at cost) account. The salaries account included travelling expenses of $2400 paid to the salesmen. What was the correct profit for the year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open
10
A sole trader maintains a provision for doubtful debts at 5% of trade receivables. Provision for doubtful debts at the start of the year was $2750. The following information is available at the end of the year. $ trade receivables 37 500 irrecoverable debts written off during the year What is the effect on the profit for the year due to the change in the provision for doubtful debts?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open
11
Esarba has a financial year end of 31 December. On 31 March 2020, she transferred her private vehicle to the business at a value of $12 000. Her profit for the year ended 31 December 2020 was $7800 and her cash drawings amounted to $8000. Depreciation of $900 had been provided on the vehicle. She also took goods for her own use with a cost price of $1000 and a selling price of $2000. What was the increase in Esarba’s capital account balance in the year ended 31 December 2020?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
13
X and Y were in partnership sharing profits and losses equally. Z was admitted as a partner and the profit and loss sharing ratio for X, Y and Z will be 2 : 2 : 1 respectively. On the date of admission, the value of non-current assets was increased by $48 000. Goodwill was valued at $30 000 but would not be retained in the books of account. What was the effect on X’s capital account?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
15
Annie and Bernie have been in partnership for some years, sharing profits and losses in the ratio 2 : 1. On 1 January 2020, they decided to introduce interest on drawings. The annual interest on drawings for the year ended 31 December 2020 was $1300 for Annie and $800 for Bernie. Which effect did this change have on the balance on Annie’s current account at 31 December 2020?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
16
The total of shareholders’ equity at 31 December 2019 was $45 500. During the year ended 31 December 2020, the following took place. An issue of 10 000 ordinary shares of $1 each at a premium of $0.25 was made. A bonus issue of 5000 shares of $1 each was made. Buildings were revalued from $250 000 to $265 000. The profit for the year was $20 400. There was a transfer to the general reserve of $6000. The directors proposed a final dividend of $8000. What was the balance of the shareholders’ equity at 31 December 2020?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
17
The following relates to a limited company during a year. $ repayment of a debenture 200 000 receipt from issue of ordinary shares 500 000 non-current assets purchased by cheque 300 000 net book value of disposals 50 000 disposal proceeds 60 000 revaluation surplus 20 000 What was the total net cash inflow arising from these?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
20
The following information for a business was available at the end of its financial year. $ inventory 20 000 bank 8 400 credit trade receivables 35 000 trade payables 15 000 rent receivable in arrears 3 000 There is also a 5-year bank loan of $20 000 repayable in equal annual instalments. What was the current ratio?
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
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