9706_s23_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2023
Paper:
1
Variant:
2
Login to start this paper & get access to powerful tools
4
The financial year of a business ends on 31 December. At the beginning of the financial year, the following payments were made in respect of a new machine. $ purchase cost installation cost 60 000 10 000 It was discovered that the installation cost had been incorrectly treated as an expense. It is the policy of the business to depreciate machinery at 20% per annum using the straight-line method. What was the effect of this error on the profit for the year ended 31 December?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
5
The motor vehicles at cost account had a balance of $90 000 at the beginning of the year on 1 January. On 1 September in the same year, the following transactions took place. A motor vehicle was disposed of. The vehicle had been purchased in the previous year for $21 000. A new motor vehicle was purchased at a cost of $24 000. Depreciation is calculated at 20% using the straight-line method. Depreciation is charged on a month-by-month basis for each month the motor vehicle is owned. What was the depreciation charge for the year ended 31 December?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
12
A business receives rent from letting part of its premises. On 1 January 2022, there was a balance brought forward of $1000 in the rent receivable account in respect of one month’s rent received in advance. During the year ended 31 December 2022, the business received further amounts totalling $13 000 to cover the period from 1 February 2022 to 31 January 2023. A rent increase of 10% was introduced from 1 April 2022. The statement of profit or loss for the year ended 31 December 2022 incorrectly included an amount of $13 000 for rent receivable. What was the effect of this error on the profit for the year?
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)  →  1.3. Accounting for non-current assets
Open
16
X, Y and Z are in partnership, sharing profits and losses in the ratio 2 : 2 : 1. X is allowed an annual salary of $10 000. Y has made a loan to the partnership on which the partnership pays interest of $5000 each year. Profit for the year before appropriation was $150 000. What was Z’s total share of 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
18
X Limited had the following equity on 1 January. $ ordinary share capital ($1 shares) 400 000 share premium 30 000 general reserve 10 000 retained earnings 70 000 During the year ended 31 December, the following transactions took place. 1 January a bonus issue of 1 ordinary share for every 8 ordinary shares; it is the company’s policy to keep its reserves in the most flexible form 1 July an issue of debentures for $150 000 1 December a rights issue of 1 ordinary share for every 15 ordinary shares at a price of $1.60 per share; the rights issue was fully taken up 31 December profit for the year ended 31 December was $120 000 What was the total equity at 31 December?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
21
The following information is available for a business for the year ended 31 December. $000 revenue purchases owing to credit suppliers owed by credit customers 90% of revenue is from credit sales. 80% of purchases are on credit terms. What is the trade payables turnover?
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
Open
23
A company incurs a semi-variable cost per employee hour worked. If hours worked exceed 10 000, an extra fixed administrative cost of $600 is incurred. hours worked administrative cost $ 8 000 20 000 10 000 24 000 What will be the total administrative cost when 12 000 hours are worked?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)
Open
29
A company manufactures three products: X, Y and Z. The table provides per unit information concerning the three products. per unit product X $ product Y $ product Z $ selling price 100.00 120.00 130.00 direct material cost 40.00 45.00 48.00 direct labour cost 20.00 25.50 29.00 variable overhead cost 15.00 18.00 20.00 fixed overhead cost 18.00 18.00 27.00 profit 7.00 13.50 6.00 All three products are made from the same material. If the material is in short supply, which manufacturing pattern will maximise profit?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.2. Standard costing
Open