9706_w19_qp_11
A paper of Accounting, 9706
Questions:
30
Year:
2019
Paper:
1
Variant:
1
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5
A company prepared its purchases ledger control account which showed a balance of $15 960. The following items were then discovered. Discounts received of $450 had been entered into the purchases ledger control account as $540. A payment of $720 to a supplier had not been entered in his account. The purchases ledger debit balances carried down totalling $110 had been omitted from the control account. A contra of $170 had been entered in the purchases ledger but not in the purchases ledger control account. What was the correct total of the trade payables?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
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7
The following information is available for a business. $ trade receivables at 1 January 2018 63 000 provision for doubtful debts at 1 January 2018 1 890 total credit sales for the year 327 000 cash received from credit customers during the year after 4% cash discount 324 000 A provision for doubtful debts of 2% is to be made. Which amount is recorded in the income statement for the year ended 31 December 2018?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
14
X and Y are in partnership. Z was admitted to the partnership on 1 July 2018. It was also agreed that at that date: Assets of the partnership would be valued upwards by $48 000. Value of goodwill would be $20 000, but no goodwill account would be retained in the books of account. Z would introduce $80 000 cash. Profit and loss sharing ratio would be X, Y and Z, 2 : 1 : 1 respectively. What was Z’s capital account balance immediately after the admission?
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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16
During the year ended 31 December 2018 a business made a profit of $31 000. A dividend of 8% was paid on the 200 000 ordinary shares of $0.50 each, and $12 000 was transferred to general reserve. The retained earnings of the business on 31 December 2018 amounted to $68 000. What was the balance of retained earnings on 1 January 2018?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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
17
A company had an issued share capital of $400 000 made up of ordinary shares of $0.50 fully paid. The following transactions took place. An issue of bonus shares on the basis of one ordinary share for every four ordinary shares already held was made. Later, a rights issue of ordinary shares of one new share for every two already held at a premium of $0.15 per share was made. This issue was fully subscribed. By how much will the company’s bank account be increased?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
19
A company’s financial statements showed the following. $000 revenue cost of sales (60) distribution costs (45) administrative expenses (10) income from investments finance costs (20) 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
21
A company’s production team has four employees. Each employee is paid a basic rate of $20 an hour. The team also shares a bonus between them, based on their output. For any production in excess of 200 units, the team is paid a bonus of $8 per unit. This bonus is shared equally. Last week each member of the team worked 35 hours, and the team as a whole produced 250 units. What was the pay of each member of the team last week?
1. Financial accounting (AS Level)  →  1.2. The accounting system
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
22
A business bought the following units of inventory in May. date quantity unit cost 4 May 1000 units $12.00 20 May 1000 units $14.00 28 May 800 units $14.75 1200 units were sold on 22 May for $20 each. The inventory’s net realisable value at 31 May was $24 per unit. There was no opening inventory. What was the value of closing inventory using the AVCO method of valuing inventory?
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)  →  1.3. Accounting for non-current assets
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28
A company forecasts that in July its sales volume will decline by 10% and its contribution per unit will decline by 5% compared to June. In June it made and sold 50 000 units. Total contribution was $80 000. Its fixed costs were $2000 and these were unchanged in July. By how much will its profit fall in July compared to June?
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
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open