9706_w14_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2014
Paper:
1
Variant:
2
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3
A sole trader calculated a draft profit for the year of $56 750. He then discovers that discounts received of $580 and discounts allowed of $665 had been recorded on the wrong sides of their respective accounts. What is the correct profit 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
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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14
The manufacturing account and income statement of a trader show the following: $ purchases of raw materials 70 000 direct costs and overheads 54 000 increase in inventory of raw materials 8 000 decrease in work in progress 3 000 increase in inventory of finished goods 14 000 What are the values of cost of production and cost of sales?
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
18
A business has the following information for the past two financial years. year 1: average inventory $100 000; revenue $800 000; gross margin 25%. year 2: average inventory $140 000; revenue $1 200 000; gross margin 30% What is the inventory turnover in year 2?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
19
The draft accounts of a business for the year ended 30 June 2013 include the following: $ revenue 280 000 gross profit 60 000 It was subsequently discovered that the closing inventory was understated by $10 000. What was the gross profit percentage after correcting this error?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
20
The following financial information is available. $ trade payables 10 000 bank overdraft 4 400 trade receivables 20 000 other receivables other payables 1 600 non-current liabilities 5 000 The business has a current ratio of 2.5 : 1. What is the value of inventory?
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
30
A business prepared a cash budget using the following information. $ fixed costs each month depreciation each month July $ August $ September $ credit sales 80 000 100 000 110 000 credit purchases 40 000 60 000 80 000 Cash for credit sales is received one month after the goods are sold. Purchases are paid two months after the goods are bought. Other costs are paid in the month they are incurred. What was the budgeted cash surplus for the month of September?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
Open