9706_s18_qp_13
A paper of Accounting, 9706
Questions:
30
Year:
2018
Paper:
1
Variant:
3
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10
During the month a company lost a quantity of inventory in a burglary. The table shows the company’s results for the month. $ opening inventory, at cost 30 000 purchases 210 000 revenue 330 000 closing inventory, at cost 4 000 A gross profit on all sales of 30% had been achieved. What was the cost of the inventory lost in the burglary?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
12
X and Y were in partnership sharing profit and loss equally. Z was admitted to the partnership and it was agreed that profit and loss were to be shared equally. Goodwill was to be valued at the date of admission but was not to be retained in the books of account. How did the goodwill adjustment affect the partners’ capital accounts?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
13
L, M and N were in partnership sharing profits and losses in the ratio 3 : 2 : 1. M retired on 31 December 2017. At that date the balance on M’s capital account was $37 000. No current accounts were maintained. The following were the terms of M’s retirement. Goodwill was valued at $24 000. Freehold property was revalued upwards by $30 000. M took over a motor vehicle at value of $7000. What was the final settlement due to M on his retirement?
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
The total equity of a company on 1 January 2017 was $400 000. The following information is available for the year ended 31 December 2017. There was a rights issue of 20 000 ordinary shares of $1 each at $1.50 in June 2017. All of these were taken up. The profit for the year was $45 000. Dividends paid during the year were $8000 and dividends proposed at the year end were $15 000. A transfer to the general reserve of $10 000 was made. What was the total equity at 31 December 2017?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
23
A business produces two products for the month of January. Overheads are absorbed using the direct labour hour rate. The production details are as follows. product P Q units manufactured and sold direct labour hours per unit 1.5 Direct costs for the month were $23 750. The fixed overheads were $6500. What was the overhead absorption rate?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)
Open
29
A company uses a direct labour rate of $5.40 per hour to absorb production overhead. Each unit of product manufactured requires four direct labour hours. The following information is available for a period. $ actual production overhead 518 400 under absorbed production overhead 32 400 What was the actual output for the period?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open