9706_s22_qp_13
A paper of Accounting, 9706
Questions:
30
Year:
2022
Paper:
1
Variant:
3
Login to start this paper & get access to powerful tools
3
A business has a financial year end of 31 December. It purchased a vehicle on 1 January 2019 for $30 000. The business depreciates vehicles at the rate of 20% per annum using the reducing balance method. Depreciation is charged on a month-by-month basis. The vehicle was sold on 30 September 2021. A profit on disposal of $3000 had been calculated. However, no entries had been made to record the depreciation for 2021. What was the effect of not recording the depreciation for 2021 on the profit 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
8
The amount of the expense for rent and rates recorded in the income statement for the year ended 31 December 2021 was $76 230. The following information was also available. balance brought forward 1 January 2021 $ balance carried forward 31 December 2021 $ rent accrued rates prepaid How much was paid from the bank account for rent and rates during the year ended 31 December 2021?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
10
A business provided the following information regarding its first year of trading. $ credit sales 93 730 receipts from credit customers 76 500 irrecoverable debt written off contra recorded between purchases ledger and sales ledger The net trade receivables recorded in the statement of financial position at the end of the year were $16 660. What was the balance on the provision for doubtful debts account at the end of the year?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
12
A summary of a trader’s bank statements for his first year of trading showed the following amounts. $ receipts from credit customers 25 000 cash sales takings banked 82 000 The trader took $2000 every month from takings as drawings before banking the remaining takings. Trade receivables at the year end amounted to $9500. What was total revenue for the year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
13
Jane provided the following information about her business. 1 January 2021 $ 31 December 2021 $ total assets 108 000 119 000 current liabilities 7 500 11 500 During the year, the business took a long-term loan of $10 000 and Jane’s drawings totalled $12 000. What was Jane’s profit for the year ended 31 December 2021?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open
15
L and M were in partnership sharing profits and losses in the ratio of 2 : 1. At 31 December 2021, the assets and liabilities of the partnership were as follows. $ non-current assets at net book value 600 000 inventory 50 000 trade receivables 40 000 bank 5 000 debit trade payables 20 000 capital and current account L 350 000 capital and current account M 325 000 The partnership closed on 31 December 2021. At that date the following took place. The non-current assets were sold for $654 000. Inventory was sold for $80 000. All trade receivables were collected and trade payables were settled at their book values. Realisation expenses were $6000. What was L’s share of the profit on realisation?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
16
X, Y and Z are in partnership sharing profits and losses in the ratio 5 : 2 : 3. Y is entitled to a salary of $18 000 per annum. Partners receive interest at 6% per annum on their capital account balances at the beginning of the year. At the beginning of the year, capital account balances were as follows. $ X 30 000 Y 22 000 Z 20 000 The profit for the year before Y’s salary and partners’ interest on capital is $140 000. What is Y’s share of the total profits?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
18
The following items were taken from the bank transactions of a company for a period. $ share issue proceeds 30 000 sale of non-current assets 5 000 dividend paid 9 000 increase in bank loan 6 000 What was the net increase in the company’s bank balance as a result of these?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
19
On 1 January 2021, W Limited had total revenue reserves of $122 000. During the year ended 31 December 2021, the following took place. A dividend of $7500 was paid. An amount of $10 000 was transferred from retained earnings to general reserve. Premises were revalued upwards by $19 800. For the year ended 31 December 2021, W Limited made a profit for the year of $32 000. What was the total of revenue reserves at 31 December 2021?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
23
A company has a financial year end of 30 November. It has no opening inventory at the beginning of the financial year. During the year, the following amounts of inventory are purchased. date quantity unit cost $ 30 March 1 November Sales for the period are 500 units at $100 each. Inventory is valued using the average cost (AVCO) method. What is the value of inventory, to the nearest dollar, at the end of the year?
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
24
A business has the following budgeted data for a production of 50 000 units. $ direct production cost 300 000 indirect labour 20 000 factory supervisor salaries 60 000 sales staff salaries 70 000 depreciation on machinery for production 80 000 depreciation on motor vehicles for delivery 50 000 administrative expenses 360 000 total costs 940 000 To determine the selling price, the business adds 40% on the cost of production. What would be the total selling price of 500 units?
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
Open
28
K Limited manufactures and sells a single type of product. The following budgeted information is available in respect of it. selling price $80 per unit variable costs $28 per unit total fixed costs $70 000 production and sales 3500 units How many extra units would the company need to produce and sell to increase the budgeted profit by $26 000?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
29
M Limited manufactures and sells two different colours of paint. The following actual information is available for last year. red paint $ blue paint $ total $ revenue 350 000 150 000 500 000 direct materials and labour 180 000 65 000 245 000 allocated fixed overheads 110 000 88 000 198 000 profit / 60 000 (3 000) 57 000 The company is considering closing the blue paint department and using the extra space to increase revenue in red paint by 20%. Variable costs will increase in the same proportion as the increase in revenue. What would be the change in the total profit if this action is taken?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
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)
Open