9706_s23_qp_13
A paper of Accounting, 9706
Questions:
30
Year:
2023
Paper:
1
Variant:
3
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5
On 1 January, the owner of a business purchased a new machine. All non-current assets are depreciated by 25% per annum. During the year, the following payments were made in respect of the machine. $ cost of machine 16 000 delivery installation one year’s insurance A charge of $5100 for these items was included in the draft statement of profit or loss for the year ended 31 December. By how much was the draft profit for the year understated?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
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7
A business purchased a vehicle which had cost $27 000 and had an estimated residual value of $1000. Depreciation of $18 200 has been charged on this vehicle. The vehicle was sold in part exchange for a new vehicle which cost $29 500. A cheque for $19 000 was paid in settlement of the transaction. Which profit or loss was made on the sale of the vehicle?
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 totals of a trial balance did not agree and the following errors were discovered. A cheque for $27 000 for the sale of a non-current asset had been credited to the sales account. The corresponding entry was correct. The purchase on credit of a new motor vehicle for $27 000 had been omitted from the supplier’s account. The corresponding entry was correct. Entries in the cash book for a transfer from cash to bank for $27 000 had been reversed. The purchases account had been overcast by $27 000. Which errors would have led to the trial balance totals being different?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
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13
At the end of a financial period, the total of the individual balances in the purchases ledger was $149 000. The following errors were then discovered. A contra for $2500 had been omitted from a supplier account. Discounts received of $1200 had been credited to a supplier’s account as $2100. No entries had been made for a credit purchase of $5100 from a supplier. Purchases returns of $3000 had been credited to a supplier’s account. What was the corrected total of the individual balances in the purchases ledger at the end of the period?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
14
A statement of financial position at the end of the financial year showed the following information. $ non-current assets 18 000 trade receivables 3 000 inventory 1 800 trade payables 3 600 bank 350 credit Capital at the start of the financial year was $19 100. The profit for the year was $9200. What were the owner’s drawings for the year?
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
16
Victor and Wasim are in partnership. At the start of the financial year, the balances on the partners’ current accounts were Victor, $22 500 credit, and Wasim, $3700 debit. The following information is available for the financial year. Victor $ Wasim $ interest on capital 1 500 1 700 share of profits 65 000 97 500 drawings 22 000 17 500 interest on drawings capital introduced – 5 000 What was the balance on Wasim’s current account at the end of the financial year?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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21
A company provided the following information at the end of its first year of trading. $ cash sales 9 000 credit sales 27 000 receipts from credit customers 24 000 trade receivables at year end 4 100 What was the trade receivables 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
27
A business marks up all of its products by 20% on total cost to calculate a selling price. Each unit of product uses 4 hours of direct labour and 2 kilos of direct material. The correct overhead absorption rate to be used is $8 per direct labour hour. In error the book-keeper used a rate of $13 per direct labour hour. What was the effect of this error on the selling price of one unit of the product?
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)
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29
A business provided the following information about its total costs. $ direct material and direct labour 84 200 factory expenses 15 700 factory overheads 16 800 selling and distribution expenses 18 100 selling and distribution overheads 9 400 144 200 1000 units had been manufactured and sold for $200 each. What was the contribution per unit?
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
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