9706_s21_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2021
Paper:
1
Variant:
2
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3
Arnaud owned a vehicle which originally cost $20 000. During the year ended 31 May 2021, he paid for repairs of $3700 and provided depreciation of $4000. On 31 May 2021, the vehicle had a net book value of $12 000. Arnaud sold the vehicle on that date and the loss on disposal amounted to $2500. What were the cash inflows and outflows relating to the vehicle during the year?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
4. Cost and management accounting (A Level)  →  4.4. Investment appraisal
Open
6
The balance on the purchases ledger control account did not agree with the total of balances from the purchases ledger accounts. The following errors were then discovered. Contra entries had not been entered in the general journal. Debit balances on the purchases ledger had not been included in the control account. Discount allowed total had been included in the control account. Goods returned to a supplier had not been recorded in the purchases returns journal. Which errors will require entries being made in the purchases ledger?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
8
A business had a draft profit for the year of $200 000. The following items were then discovered. Depreciation charges had been overstated by $20 000. The value of closing inventory was overstated by $15 000. A year-end accrual for wages was needed, $8000. A year-end adjustment for prepaid insurance, $2500, was required. What was the corrected profit for the year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
12
L and M are partners sharing profits and losses equally. This year M’s share of the profit is $18 000. Next year they plan to change the partnership agreement so that L has an annual salary of $10 000 and a one-third share of any profits or losses. What does the total partnership profit for next year need to be for M to receive the same amount of profit as this year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
13
V and E are in partnership, sharing profits and losses equally. Their capital accounts showed the following credit balances at 31 March 2021. $ V 80 000 E 40 000 Z was admitted as a partner on 1 April 2021. At that date the following items were taken into account. Non-current assets were revalued downwards by $20 000. Goodwill was valued at $80 000, but will not remain in the books of account after Z is admitted. The new profit-sharing ratio will be V 40%, E 30% and Z 30%. What was the balance on E’s capital account after the admission of Z?
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
17
The financial year of a limited company ends on 30 June. The following information is available regarding ordinary dividends. for the year ended dividend proposed $ 30 June 2019 12 000 30 June 2020 19 000 During the year ended 30 June 2020, the company paid last year’s proposed dividend in full together with an interim dividend of $4300. What is the amount of dividends shown...
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
27
A business manufactures three products. The following information was provided. per unit X $ Y $ Z $ selling price direct material direct labour contribution fixed overheads profit Direct labour is in short supply. All direct labour is paid at the same hourly rate. Which order of production should be used to maximise the profit?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.2. Standard costing
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
28
The following information is available for a month. per unit $ selling price contribution Total fixed costs were $100 000 and budgeted sales were 5000 units. The directors think that if they reduce the unit selling price to $95, sales will increase to 6500 units a month. What would be the increase in profit as a result of this?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open