9706_w10_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2010
Paper:
1
Variant:
2
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1
On 1 January 2009 a business had prepaid rent of $50. During 2009, three rent payments were made of $250 each. On 31 December 2009, the business still owes $200 rent on account for 2009. The business owner has charged the rent payments made during 2009 in his income (profit and loss) account. What is the effect on net profit?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
5
At 30 June the balance sheet of a business includes the following. $ trade receivables 46 000 provision for doubtful debts 5 % 2 300 During July, sales of $350 000 were made of which 20 % were in cash. Credit customers paid $303 800 after deducting a 2 % cash discount. How much did the trade receivables owe to the business at 31 July?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open
11
For the eleven months ended 31 August 2009, snack bar takings were correctly recorded at $109 340. For September 2009, the snack bar takings were mixed up with other income. The snack bar profit margin was 30.%. The table shows figures for the snack bar for September 2009. $ opening inventory at cost 6 303 purchases 8 844 closing inventory at cost 7 370 What was the gross profit of the snack bar for the year ended 30 September 2009?
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
12
Information relating to a club’s subscription is: $ received during the year 20 000 paid in advance in the previous year 2 000 paid in advance during the current year 1 000 There were no subscriptions in arrears at the start or end of the year. Individual subscriptions have remained constant at $500 per annum for the last two years. How many members does the club have?
1. Financial accounting (AS Level)  →  1.2. The accounting system
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
Open
13
X and Y are in partnership, sharing residual profits and losses equally after the payments below are made. 2 % interest is charged on partners’ drawings salary to Y of $10 000 The partners’ drawings for the year were: X $12 000 Y $8000 The net profit for the current year is $52 000. How much will each partner receive in share of residual profits?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
14
The table shows data for a manufacturing company for a year. $ office salaries 34 500 factory wages 115 000 depreciation on plant 3 700 depreciation on office equipment 1 500 cost of raw materials 89 600 royalties paid 4 200 closing inventory of completed goods 5 100 What is the production cost of completed goods for the year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
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
17
A business has two departments, men’s clothing and ladies’ clothing. The following information is available. men’s department ladies’ department sales assistants floor space 160 m2 200 m2 value of non current assets $59 000 $61 000 annual sales $450 000 $750 000 The cost of heating and lighting is $17 692. What is the cost of heating and lighting for the men’s department?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open
19
The table shows extracts from the trial balance of a company at 31 December 2009. $ ordinary share capital 750 000 8 % preference shares 250 000 6 % debentures (2015) 150 000 bank loan repayable (2012) 75 000 bank overdraft 110 000 mortgage on buildings (repayable 2010) 120 000 What is the total of non current liabilities in the balance sheet at 31 December 2009?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
20
A company’s share capital and reserves are: $ non current assets 250 000 net current assets 125 000 375 000 share capital and reserves 150 000 shares $1 each 150 000 share premium 75 000 general reserve 125 000 profits retained 25 000 375 000 The directors propose to issue bonus shares on the basis of one $1 share for every three already held. Following this the directors intend to make a rights issue on the basis of one new $1 share for every four shares held, at a premium of $0.20 per share. What will the total net assets of the company be after the share issues?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
27
A factory produces a product with a variable cost of $0.60 per unit. Fixed costs are $15 000 per quarter, including rent of $6000 per quarter. If more than 20 000 units are made per quarter, additional space is required which increases the rent by 50 %. What is the total cost per unit of producing 30 000 units in a quarter?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
Open