9706_s20_qp_13
A paper of Accounting, 9706
Questions:
30
Year:
2020
Paper:
1
Variant:
3
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1
The owner of a business purchased a camera to take some photographs of her family. She wishes to include it as an asset in the financial statements of the business. Her accountant says that she should not do this. Which accounting principle is the accountant applying?
1. Financial accounting (AS Level)  →  1.2. The accounting system
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
3
A business has a year end of 31 December. It depreciates its motor vehicles over four years using the straight-line method. A full year’s depreciation is charged in the year of purchase, but none in the year of sale. A motor vehicle purchased on 1 July 2016 for $18 000 had an estimated residual value of $4000. The motor vehicle was sold for $5000 on 31 December 2019. What was the profit or loss on disposal?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
4
The following information is available in respect of the purchase of a new machine. $ machine cost 80 000 less 10% trade discount 8 000 72 000 delivery cost 1 200 installation cost 1 800 annual maintenance cost 4 000 The business plans to keep the machine for 5 years. It is expected to be sold for $5000. What will be the annual depreciation charge using the straight-line method?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
Open
6
The trial balance of a business did not agree and a suspense account was opened. The following errors were then discovered. The sales journal total of $9150 had been credited to both the sales account and the sales ledger control account. The purchases journal total of $3450 had been entered correctly in the purchases account but as $3350 in the purchases ledger control account. Motor expenses of $6450 paid by cheque had only been entered in the bank account. What was the opening balance in 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
The draft financial statements of a business show a profit for the year of $64 000 before taking account of the following: the reduction of the provision for doubtful debts by $300 the purchase of office stationery costing $2400 which has not been entered in the books; only one-sixth of this stationery was used by the year end. What is the corrected profit for the year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
11
A company receives rental income from letting out two properties. Total rental income received from these two properties for the year ended 31 December 2019 was $55 000. Further information relating to these two properties was as follows. property 1 property 2 $ $ rent received in advance 1 January 2019 31 December 2019 rent receivable in arrears 1 January 2019 31 December 2019 What was the total amount of rental income shown...
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
X and Y were in partnership and shared their profits equally. On 1 March 2019, Z is admitted as a partner. In future they will share profits in the ratio X, Y and Z, 3 : 2 : 1. The net assets valued at $20 000 have lost $8000 in value. Goodwill is valued at $9000 but will not be retained in the books of account. What will the entries in the capital accounts of Y be to record these changes?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
15
The statement of financial position showed the following balances at 31 December 2019. L $ M $ capital accounts 20 000 10 000 current accounts 1 000 debit 2 500 credit Net assets at 1 January 2019 were $14 000. Property had been revalued upwards by $12 000 during the year ended 31 December 2019. No drawings had been made during the year. What was the profit for the year ended 31 December 2019?
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
18
The following information is available for T Limited. 30 June 2018 30 June 2019 $ $ retained earnings 94 000 148 000 general reserve 50 000 65 000 accrued loan interest 3 000 1 000 During the year ended 30 June 2019, T Limited made the following payments. $ dividend 60 000 loan interest 27 000 What was the profit from operations for the year ended 30 June 2019?
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
Open
20
The following information is available for G Limited for the year ended 31 December 2019. $ share capital 275 000 long-term bank loan 180 000 current liabilities 120 000 profit from operations 244 000 bank loan interest 34 000 retained earnings including profit for the year 400 000 What was the return on capital employed?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
Open