9706_s24_qp_13
A paper of Accounting, 9706
Questions:
30
Year:
2024
Paper:
1
Variant:
3
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4
A business acquired new factory machinery costing of $120 000. This amount was included in non-current assets, and depreciation at 10% of cost was charged to the draft statement of profit or loss for the period. In addition the business paid $14 000 for installation of the machinery and $6000 for insuring the machine. These amounts were treated as revenue expenditure for the period. The draft statement of profit or loss for the period showed a profit of $50 000. What is the revised profit for the period?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
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7
A business buys a vehicle for $10 000 on 1 January Year 1 and sells it for $6500 on 1 January Year 3. The business has depreciated the vehicle at 10% a year, using the straight-line method. The business provides a full year’s depreciation in the year of purchase and none in the year of disposal. Which amount for profit or loss will appear in the disposal account, and on what side of the disposal account will it be shown...
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
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9
A suspense account was opened to record the difference on a trial balance. The following errors were then discovered. The discount allowed of $2000 had only been entered in the sales ledger control account. A cheque for $1500 paid for repairs had been entered as $5100 in the repairs account. What was the opening balance on the suspense account?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
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12
The purchases ledger control account for a business shows a closing balance of $7640. The following items were then discovered. A purchase invoice for $250 had been entered in the purchases ledger but not in the purchases journal. A sales ledger contra of $630 had not been entered. A supplier’s account with a debit balance of $70 had been omitted from the control account. Returns inwards of $540 had been entered on the debit side of the control account. What was the credit balance to carry down after adjusting for these items?
1. Financial accounting (AS Level)  →  1.2. The accounting system
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
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17
Yasmin and Zara are in partnership, sharing profits and losses in the ratio 3 : 2 respectively after providing Zara with a partnership salary of $8000 per annum. During the partnership’s first year of trading, Yasmin’s drawings totalled $11 500 and the partnership made a profit of $7000 before appropriation. What was the closing debit balance on Yasmin’s current account?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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22
A business provided the following information relating to its most recent financial period. $ 1 020 000 sales revenue 700 000 purchases 80 000 carriage inwards 180 000 carriage outwards 170 000 opening inventory 210 000 closing inventory What is the rate of inventory turnover for the period?
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
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24
A business uses the first in first out (FIFO) method for valuation of inventory. There was no opening inventory in July. The business purchased direct materials during July as follows: cost per kg $ quantity kg July purchases purchases $233 D Each unit required 4 kg of direct materials. The labour cost for each unit was $42. The fixed overhead for July was $85 000. In July 1000 units were produced and 800 units were sold. What is the average direct cost for each unit?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
4. Cost and management accounting (A Level)  →  4.2. Standard costing
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25
A business provides accounting services to its clients. One of its employees takes 30 hours to complete a job. The employee’s hourly rate is $25. The business absorbs its overheads at a rate of $10 per labour hour. It adds 20% profit to the total cost of the job. What is the total price of the job charged to the client?
4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
1. Financial accounting (AS Level)  →  1.2. The accounting system
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