9706_w12_qp_13
A paper of Accounting, 9706
Questions:
30
Year:
2012
Paper:
1
Variant:
3
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2
A company’s accounting year end is 31 December. It always pays its insurance premiums annually, in advance, on the due date, 1 September. During the last few years the following premiums have been paid: Year 1 $2400 Year 2 $2760 Year 3 $3840 What will be the charge for insurance in the company’s income statement for Year 3?
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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12
A clothing retailer provides the following information for its three departments. Gentlemen Ladies Children gross profit $35 000 $42 500 $22 500 number of employees The total overheads incurred by the retailer are $76 000 and these are apportioned to the departments on the basis of number of employees. What is the net profit or loss made by the children’s department?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
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15
X and Y are in partnership, sharing profits and losses in the ratio of 2:1. X had taken goods costing $1500 from the business for his own use. The goods had been treated as a sale and credited to the sales account at their normal selling price of $2400. It was agreed that the goods should have been credited to the purchases account and not to sales and the records were corrected accordingly. Which entries should be made in the partners’ current accounts to make the correction?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
17
A business was started on 1 January. The purchases and sales of inventory for January were: date purchases sales 4 January 3 @ $200 – 13 January – 2 @ $400 26 January 3 @ $250 – 28 January – 2 @ $400 The business used the first in first out (FIFO) method of inventory valuation. What was the gross profit for January?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
19
The profits of Bronte Ltd are: Year ended 31 December 2010 nil Year ended 31 December 2011 $60 000 Bronte Ltd has in issue 200 000 5% preference shares of $1 each. What is the profit available for distribution to ordinary shareholders for the year ended 31 December 2011, if the preference shares are cumulative or non-cumulative?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
21
A company published the financial statements for the year ending 31 December 2011, an extract of which is detailed below. $ retained earnings at 1 January 2011 90 000 profit for year 10 000 retained earnings at 31 December 2011 100 000 share capital 20 000 What is the return on capital employed based on average capital?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
Open
23
The following information relates to the financial statements of a business. $000 opening inventory 2 470 closing inventory 2 156 cost of sales for year 12 500 revenue for year 21 660 What was the inventory turnover in days?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
Open