9706_m22_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2022
Paper:
1
Variant:
2
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3
On 1 July 2021, Tim bought a delivery van for $10 000. He paid an additional $900 to have racks fitted inside, and $800 for a year’s insurance. Tim provides for depreciation at the rate of 10% per annum. A full year’s depreciation is charged in the year of acquisition. What was the total for expenses recorded in Tim’s income statement in respect of the van for the year ended 30 September 2021?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
8
The following information is available for a business at 31 December 2021. $ general expenses in arrears 1 January general expenses in advance 1 January general expenses in arrears 31 December general expenses in advance 31 December Total amount paid during the year ended 31 December 2021 is $11 500. What is the amount to be included in the income statement for general expenses for the year ended 31 December 2021?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
12
The year end of a business is 31 December 2021. On 5 January 2022, inventory was counted and valued at cost, $30 000. The following was then discovered. Goods purchased and received after the year end, costing $1500, had been included in the valuation. It included goods returned by a customer after the year end. They had a selling price of $900 which included a mark-up of 25% during the year. Some goods included in the inventory, costing $500, were damaged. They can be sold for $300 after repairs costing $100. Which value of inventory should be included in the financial statements at 31 December 2021?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
13
A sole trader provided the following information for the year ended 31 December. $ non-current assets increased by 25 000 current assets increased by 10 000 current liabilities increased by 12 500 additional capital introduced during the year 20 000 drawings for the year 13 000 What was the profit for the year ended 31 December?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
15
P and Q are in partnership sharing profits and losses equally. On 1 January 2021, the partnership had net assets of $410 000. At that date, R was admitted into the business on the following terms. Net assets to be revalued to $480 000. Goodwill was valued at $50 000 but will not be retained in the books of account. Profits and losses will now be shared P 40%, Q 40% and R 20%. What was the change in Q’s capital immediately after R’s admission?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
18
A limited company had the following balances on 1 January 2021. $ revaluation reserve 20 000 retained earnings 142 000 Profit for the year ended 31 December 2021 was $105 000. The revaluation reserve, $20 000, was created two years ago from a revaluation of a property. The same property was revalued on 31 December 2021 with a revaluation loss of $35 000. On 1 August 2021 an interim dividend, $40 000, was paid. On 31 December 2021 a final dividend, $55 000, was proposed. What was the value of retained earnings at 31 December 2021?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
21
The following information for a limited company at 31 December 2021 is available. $ ordinary share capital 300 000 retained earnings 110 000 8% debenture 100 000 Retained earnings at 1 January 2021 were $82 000. An interim dividend of $45 000 was paid on 1 May 2021. What was the return on capital employed for the year ended 31 December 2021?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
23
A production worker is paid $15 per hour for working 8 hours a day. Overtime is paid at the rate of time and a fifth (basic pay plus 20%). A productivity bonus is also paid at the rate of $21 per unit for each unit produced in excess of 12 units per day. Last Friday, the production worker worked 12 hours and assembled 14 units. How much did he earn on Friday?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
Open
24
A retailer made the following purchases of inventory in October. purchase quantity unit price $ total cost $ 5 Oct 25 000 12 Oct 25 000 23 Oct 78 750 128 750 There was no opening inventory for October. The business uses the first-in first-out (FIFO) method to value its inventory. In October, 200 units were sold for $900 each. What was the gross profit for October?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
28
The following information is available about two products. product 1 per unit product 2 per unit material X 2 kilos 4 kilos material Y 3 kilos 1 kilo direct labour 3 hours 6 hours Production is planned to be 100 units of each product. 700 kilos of material X and 400 kilos of material Y are available. A total of 800 direct labour hours can be worked. What are the limiting factors?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
Open
29
A company provides the following information about its product. selling price $100 variable cost per unit $40 fixed costs $21 600 break-even point 360 units If the business changes its production method, contribution will increase by 10% and fixed costs will increase by 5%. What would be the effect on the break-even point?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open