9706_m23_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2023
Paper:
1
Variant:
2
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4
At the start of a financial period, the owner’s capital account of a business showed a balance of $85 000. During the period, the owner introduced to the business a private vehicle worth $30 000. In addition, the owner made cash drawings of $15 000. The business made a net loss for the period of $22 000. What is the balance on the capital account at the end of the period?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
8
A trial balance does not balance. The difference has been entered in a suspense account. The following errors are found. A cash payment of $630 for rent has been credited in the cash book and debited to the irrecoverable debts account. The provision for depreciation account has been overcast by $960. The purchases ledger control account balance of $48 300 has been included as a debit balance. What is the correcting debit entry to the suspense account?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
10
At the month end, a business bank statement showed a credit balance of $12 697. This did not agree with the cash book balance. The following differences were found. A cheque received, $7170, was entered as $7710 in the cash book. A cheque paid in, $2400, had not been cleared by the bank. A standing order, $450, was recorded in the cash book but had not been paid by the bank. Bank interest payable of $642 had not been entered in the cash book. What was the cash book balance before the necessary corrections were made?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
12
The sales ledger control account of a trader showed a debit balance of $28 500 at the end of the financial period. This did not agree with the total of the individual trade receivables accounts in the sales ledger. The following errors were discovered. A dishonoured cheque for $300 from a credit customer had been entered on the credit side of the sales ledger control account. Contras of $500 entered correctly in the sales ledger had been omitted from the sales ledger control account. Discounts allowed of $700 had not been entered in the sales ledger control account. Which figure should be used for trade receivables in the financial statements?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
13
At the start of the year on 1 January, a business had an inventory of stationery which had cost $3740. On that date, $1200 was owed to suppliers for stationery. During the financial year ended 31 December, a total of $38 800 was paid for stationery. Some old stationery was sold to staff for $240. At the end of the year on 31 December, the business had an inventory of stationery valued at cost, $4200. On that date, $1800 was owed to suppliers for stationery. Which figure should be included in the statement of profit or loss for the year ended 31 December for stationery?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
14
The following information is extracted from the records of a business for a financial year. $ at 1 January rent paid in advance 4 000 during the year ended 31 December rent paid 41 000 at 31 December rent paid in advance 7 000 How much will be charged for rent in the statement of profit or loss 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
Open
19
The following information is available for a limited company for a financial year ended on 31 December. $ total equity on 1 January 492 000 profit for the year 70 500 dividends paid 24 000 dividends proposed 12 000 On 30 June, there was a bonus issue of 20 000 ordinary shares of $1 each. On 31 December, the following decisions were made. The buildings are to be revalued at $250 000. These had cost $200 000 and the accumulated depreciation was $50 000. There is to be a transfer of $5000 to the general reserve. What is the total equity on 31 December after these adjustments have been made?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
21
The year-end statement of financial position of X Limited at 31 December shows the following: $000 non-current assets current assets ordinary share capital general reserve long-term loan current liabilities retained earnings The profit from operations for the year was $65 000 and finance costs were $20 000. What was the return on capital employed for the year?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
23
A manufacturer operates a bonus system. He provides the following information. output required from each worker 175 units time allowed to complete output 10.5 hours actual time worked by Fred 7 hours A bonus is paid of 25% of the labour costs for time saved, in addition to the hourly rate of $8.75. What did Fred earn for his output of 175 units?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
27
The following data applies to the budget for a job. direct materials $4800 direct labour $2200 machine hours Direct labour is employed at an hourly rate of $11. Production overheads are charged at $25 per direct labour hour and an amount for selling and distribution overhead is calculated at 20% of factory cost. What is the total cost of the job?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
4. Cost and management accounting (A Level)  →  4.2. Standard costing
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open
28
A company has two production departments, manufacturing and assembly, and a stores service department. The overheads are apportioned to each department using the appropriate costing information supplied. manufacturing assembly stores direct labour hours 8 400 33 600 machine hours 20 160 6 720 total cost of the stores department $32 800 number of store requisitions 3 000 2 000 What are the overhead absorption rates for the two production departments in respect of the stores?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
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