9706_s23_qp_11
A paper of Accounting, 9706
Questions:
30
Year:
2023
Paper:
1
Variant:
1
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2
Phil purchased new premises and made the following payments. $ premises 60 000 legal fees relating to purchase 2 000 insurance for the financial year When recording the purchase of the premises, the legal fees and insurance were both treated incorrectly. Phil’s accounting policy is not to charge depreciation on non-current assets in the year of purchase. What was the effect of the errors on the profit for the year?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
7
Douglas prepared a trial balance and found that the total of the debit column was $50 higher than the total of the credit column. The following errors were discovered. error 1 a purchases invoice for $100 had been incorrectly recorded error 2 an irrecoverable debt of $50 had been incorrectly recorded Which combination of the two errors together caused the difference in the totals?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
9
A company received its bank statement dated 30 June showing a credit balance of $6890. The cash book on this date had a debit balance of $7234. The following items were discovered. Bank charges of $54 had not been entered in the cash book. Deposits made to the bank on 30 June for $490 had not been shown...
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
13
Draft financial statements for a business showed a profit for the year of $62 000. The following errors were discovered. Accrued loan interest payable of $3900 had not been accounted for. Allowance for irrecoverable debts had been overstated by $4800. Depreciation was found to be understated by $7500. Prepaid rent expense of $2600 had not been accounted for. What was the corrected profit for the year?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
15
The owner of a business does not keep a full set of accounting records for his business. The following information is available about assets and liabilities. current year end $ previous year end $ inventory 19 200 17 500 trade receivables 31 200 22 400 trade payables 14 300 16 600 All purchases and sales are on credit. During the current year: The business received $168 000 from customers after allowing them a discount of $3400. The business paid $74 000 to suppliers for inventory. No discounts were received. The owner took inventory of $3200 for personal use. What was the gross profit for the current year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
17
The partnership agreement of X and Y stated that interest on capital should be calculated at the rate of 10% per annum. At the beginning of the year on 1 January, the balances on X’s accounts were: capital $50 000, current $2000 debit. On 1 July, X contributed additional capital of $20 000. On 31 December, the balance on X’s current account was $20 500 credit. He had made no drawings. What was X’s share of the residual profit for the year?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
25
Justine is an accountant and charges her clients a fee at an hourly rate plus overheads. She adds a mark-up of 20%. The following budgeted information is available. annual hours worked annual overhead expenditure $56 350 direct labour rate per hour $45 extra charge if job is greater than 15 hours $200 overheads are charged on a direct labour hour basis How much will Justine charge a client for a job which takes 20 hours to complete?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.2. Standard costing
Open
27
A business has two production departments: machining and assembly. The budgeted direct labour hours for each department are: machining assembly 16 000. The business has calculated overhead absorption rates as: machining $12 per direct machining hour assembly $7.70 per direct labour hour. Insurance of $4800 relating to the assembly department was incorrectly omitted when making the calculations. What is the correct overhead absorption rate for the assembly department?
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 business makes and sells a single type of product. The following information is available. per unit $ selling price 10.80 direct material 2.20 direct labour 4.20 The business also has a semi-variable overhead associated with this type of product. The overhead is $32 000 when output is 20 000 units, but rises to $40 000 when output is 40 000 units. What is the break-even point for this type of product?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.2. Standard costing
Open