9706_w18_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2018
Paper:
1
Variant:
2
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3
A trader purchased a motor vehicle costing $36 000 on 1 July 2016. The estimated useful life of the motor vehicle was five years and the estimated residual value was $6000. Depreciation is provided on a month-by-month basis using the straight-line method. The motor vehicle was sold on 31 March 2018 for $22 500. What was the profit or loss on disposal of the motor 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
4
The following is an extract from the statement of financial position for a company at 31 December 2016. cost $ accumulated depreciation $ net book value $ non-current assets 250 000 95 000 155 000 The assets have a residual scrap value of $12 500. The company’s policy is to provide depreciation using the reducing balance method at a rate of 25% per annum. What was the depreciation charge for the year ended 31 December 2017?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
6
A trader has extracted the following information from his books of account at 31 March 2018. $ purchase ledger balances at 1 March 2018 32 100 credit purchases for March 26 400 cheques paid to credit suppliers in March 29 700 contra to sales ledger discount received What was the closing balance on the purchases ledger control account at 31 March 2018?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
9
A company has the following balances. $ trade receivables at 31 December 2017 125 400 provision for doubtful debts at 1 January 2017 1 800 During the year ended 31 December 2017 debts of $20 500 had been written off. The company provides for doubtful debts at a rate of 5% of trade receivables at each year end. Which expense for doubtful debts was included in the income statement for the year ended 31 December 2017?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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
11
The draft financial statements for a business included an inventory valued at $550 000. This valuation included damaged items which originally cost $50 000. These could be sold for $15 000 provided that $5000 is spent on repairs. What is the correct inventory valuation?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
14
X and Y had been in partnership sharing profit and losses in the ratio of 1 : 2 respectively. Z was later admitted to the partnership. It was agreed that the goodwill is valued at $120 000. No goodwill account is to be retained in the books of account. Profit and losses were to be shared between X, Y and Z in the ratio of 2 : 1 : 1 respectively. What was the effect of the goodwill adjustment in X’s capital account?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
15
J and K shared profits equally. Their capital account balances were J $400 000 and K $160 000. L was admitted as a partner. The three partners then shared profits equally. On admission of L as a partner, assets were increased in value by $210 000. L paid in capital equal to the average new capital balances of J and K. What was the capital paid in by L?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
16
The statement of financial position of a business on 31 December 2017 showed the following. $ retained earnings 136 000 general reserves 28 000 share premium 55 000 During the year ended 31 December 2017 the business had made a profit for the year of $25 000 and had transferred $10 000 to the general reserve. What was the total of revenue reserves on 1 January 2017?
1. Financial accounting (AS Level)  →  1.5. 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
17
A company provides the following information. $ ordinary shares of $0.50 each 84 000 retained earnings 50 000 134 000 The following transactions then take place. The company makes a rights issue of one new ordinary share for every two held, at $1.30. The issue was fully subscribed. A bonus issue of two new ordinary shares for every three held was then made. What is the maximum possible balance of the retained earnings after these transactions?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
20
A company’s income statement shows the following. $ revenue 460 000 cost of sales 120 000 administration expenses 54 000 distribution costs 47 000 finance charges 7 000 What is the operating expenses to revenue ratio?
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
23
A retailer uses the FIFO method for inventory valuation. The following information is available. June $ opening inventory 300 units at $12 per unit 3 600 purchased 1000 units at $12.50 per unit 12 500 sold 1200 units for $16 each 19 200 purchased 700 units at $13 per unit 9 100 What was the value of the inventory at 30 June?
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
26
A company manufactures a single product with a selling price of $75 per unit. The table shows the costs based on sales and production volume of 8000 units. $ direct costs 158 000 variable manufacturing overheads 74 000 fixed manufacturing overheads 80 000 variable selling overheads 20 000 fixed administration overheads 100 000 If absorption costing is applied, what is the gross profit on each unit sold?
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
4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)
Open