9706_s22_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2022
Paper:
1
Variant:
2
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3
Paul has a year end of 31 December. On 1 January 2020, he bought a non-current asset for $10 000. He sold it on 1 January 2021 for $8500. Paul usually provides depreciation at the rate of 10% per annum. A full year’s depreciation is charged in the year of acquisition and none in the year of disposal. He forgot to provide for any depreciation on this non-current asset. What was the effect of this error on Paul’s profit for the year ended 31 December 2021?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
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7
At 31 December 2021, the sales ledger control account had a balance of $19 100 while the total balances in the sales ledger were $20 900. The following reconciliation statement had been prepared after the errors were located. $ balance of sales ledger control account 19 100 credit sales omitted from the sales journal 1 600 discount allowed understated in sales ledger total of balances in the sales ledger 20 900 What is the correct amount of total trade receivables as shown...
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
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8
At the year-end, Victor had 100 units of inventory which had cost $12 per unit. Of these, eight units had been received on the last day of the year and had not yet been paid for. An additional six units were damaged and would be sold for $10 each once repairs to them totalling $20 were made. What was the value of inventory in Victor’s financial statements at the year-end?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
10
At 31 December 2021, the draft statement of financial position for a business showed total assets of $1 000 000. The following was then discovered. An increase in the provision for doubtful debts, $5000, had not been recorded. Closing inventory had been overvalued by $20 000. Depreciation, $10 000, had not been recorded. What was the corrected total assets value?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
12
A business provides the following information. $ revenue 140 000 opening inventory 22 000 closing inventory 24 500 purchases 120 000 Goods are sold at cost plus 25%. The owner has taken goods for own use but has not recorded these as drawings. What is the value of the goods taken for own use?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
13
A business owner does not maintain a full set of accounting records. At the end of the financial year the following information is available. $ trade payables opening balance 22 500 closing balance 27 400 returns outwards 1 000 payments to trade payables 110 600 There were no cash purchases. The opening and closing inventory has remained at the same amount. What was the amount of the cost of sales?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.2. The accounting system
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
15
Dua and Noor are in partnership sharing profits and losses equally. They admitted Zee and now share profits and losses in the ratio Dua : Noor : Zee, 2 : 2 : 1. On admission of Zee, tangible assets were reduced in value by $20 000 and goodwill was valued at $60 000, but was not retained in the books of account. What was the net decrease on Noor’s capital account?
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)  →  1.5. Preparation of financial statements
Open
19
On 1 January, X Limited had share capital of 100 000 ordinary shares which had been issued at their par value of $1 each. There was no share premium account. On 1 March, a bonus issue of one new ordinary share for every five ordinary shares held was made from retained earnings. On 1 June, the company made a rights issue of one new ordinary share for every four ordinary shares held at a price of $1.50 each. All the rights were taken up. How much was recorded in the share premium account?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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21
The following shows extracts from the statement of financial position of a company. at 30 September $ non-current assets 120 000 inventory 35 000 trade receivables 23 000 cash at bank (debit balance) 12 000 trade payables 15 000 bank loan repayable within 12 months 40 000 What is the liquid (acid test) ratio?
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
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 company makes and sells a single product type. The product is sold for $50 per unit and variable costs are $30 per unit. Total fixed costs are $500 000. How many units of the product does the company need to sell to make a profit of $300 000?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
28
A business makes and sells three different product types, M, N and O. The following information is available. product per unit M $ N $ O $ selling price direct material direct labour variable overheads fixed overheads profit / (5) Each product uses the same direct material, which is in short supply. In which order of priority should the products be produced to maximise the profit?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open