9706_m24_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2024
Paper:
1
Variant:
2
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6
At the beginning of the financial year on 1 January, a business acquired a new motor vehicle for $34 000. In error, this was recorded in the account for motor expenses. Motor vehicles are depreciated using the reducing balance method at the rate of 30% per annum. It is estimated that the motor vehicle will have a residual value of $4000 at the end of its life. If the error is not corrected, what will be the effect on the profit for the year ended 31 December?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
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7
A company purchased a machine on 1 April 2021 for $25 000. It was depreciated at 20% per annum using the straight-line method. A full year’s depreciation is charged in the year of purchase but none in the year of sale. On 30 June 2023 the machine was sold for $12 500. The company’s year end is 31 December. What was the profit or loss on the disposal of the machine?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
9
A business prepared a trial balance that included a suspense account. Draft financial statements were prepared which showed a profit for the year of $85 000. The following errors were then discovered. Discounts allowed of $1000 had been debited to the discounts received account. Motoring expenses of $4000 had been debited to the purchases account. A payment for purchases of $5000 had been correctly entered in the cash book but credited to the drawings account. After correcting these errors the balance on the suspense account was eliminated. What was the revised profit for the year?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
13
A company prepared its purchases ledger control account, which showed a balance of $15 960. The following items were then discovered. Discounts received of $450 had been entered into the purchases ledger control account as $540. A payment of $720 to a supplier had not been entered in his account. The purchases ledger debit balances carried down totalling $110 had been omitted from the control account. A contra of $170 had been entered in the purchases ledger but not in the purchases ledger control account. What was the correct total of the trade payables?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
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14
Deepak provided the following information. end of year 2 end of year 1 $800 5% $600 3% allowance for irrecoverable debts rate of allowance By how much did the total of trade receivables change from the end of year 1 to the end of year 2?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
Open
15
A sole trader began a business on 1 January with $50 000 capital. During the year she introduced to the business her own private vehicle which had cost $22 000 but which was valued at $16 000 when she added it to the business. Drawings for the year were $20 000. At the end of the financial year on 31 December the closing balance on the capital account was $105 000. What was the profit for the year?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
19
The trial balance of a company at 31 December at the end of year 1 included the following amounts. $ 800 000 Ordinary share capital ($0.50 shares) 200 000 Share premium 1 000 000 Retained earnings On 1 January in year 2 the company made a rights issue of 400 000 shares at a premium of $0.70 per share. This was fully taken up. On 1 July in year 2 the company issued bonus shares at the rate of one new share for every four held. The policy is to maintain reserves in their most flexible form. What is the balance on the share premium account after these transactions?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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21
H Limited’s cost of sales for the recent two years (Year 2 and Year 1) is as follows: Year 1 $ Year 2 $ 65 000 100 000 average inventory 760 000 910 000 credit purchases 750 000 850 000 cost of sales Which statement regarding the efficiency of inventory turnover is correct?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
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