9706_w20_qp_11
A paper of Accounting, 9706
Questions:
30
Year:
2020
Paper:
1
Variant:
1
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6
When preparing the financial statements for the year the following errors are discovered. No provision had been made for accrued wages of $250. No account had been taken of prepaid rent of $400. The sales journal was undercast by $300. The draft profit for the year is $8050. What will be the profit when the errors are corrected?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
7
The following information relates to a company’s banking transactions at 31 December. $ balance at bank as per bank statement 22 650 credit uncleared bankings 3 110 unpresented cheques 6 290 bank interest received recorded twice by bank in error What amount should appear as the bank balance in the statement of financial position at 31 December?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
8
John did not keep sales or purchases ledger control accounts. His trial balance did not balance and a suspense account was opened. The following errors were discovered. Sales of $200 had been entered as a credit in both a customer’s account and the sales account. Purchases of $350 from J Brown had been entered as a credit in E Brown’s account. Machinery repairs of $600 had been entered in the machinery at cost account. Returns inwards of $450 had been entered in the sales returns account but omitted from the customer’s account. What was the amount of opening balance on the suspense account?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
9
A business valued its inventory at the year end at cost, $24 650. This did not take account of the following. Goods had been invoiced to a customer at $3000 and included in sales. They should have been treated as goods on sale or return as the customer had not indicated they would buy them. Goods purchased for $6400 and included in the inventory have been damaged and now have a sales value of $5700. Returns inwards which had been sold for $800 had not been included in the inventory. The business has a mark-up of 25%. What was the correct value of the inventory?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
11
At 1 April 2019 a business had a provision for doubtful debts of $3400. An analysis of trade receivables at 31 March 2020 was as follows. amount $ provision required 50 000 nil 40 000 5% 1 600 20% During the year an irrecoverable debt of $3000 had been written off in the customer’s account, but no entry made in the income statement. No entry had been made for the increase or the decrease in the provision for doubtful debts. The income statement for the year ended 31 March 2020 showed a draft profit for the year of $90 000. What was the effect on the draft profit for the year of these omissions?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
14
L, M and N were in partnership sharing profits and losses in the ratio 3 : 2 : 1. The partnership was dissolved on 31 December 2019. After all assets had been realised and all liabilities paid, the following balances remained in the books of account. L ($) M ($) N ($) total ($) partners’ capital accounts 30 000 20 000 10 000 60 000 partners’ current accounts 4 000 8 000 (3 000) 9 000 cash at bank 60 000 realisation account 9 000 How much cash did N receive when the dissolution was complete?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
17
The following information was taken from the accounting records of a company at 1 January 2020. $ non-current assets at cost 250 000 accumulated depreciation 120 000 trade receivables 42 000 bank overdraft 25 000 cash & cash equivalents 9 000 prepaid expenses 2 000 inventory 17 000 5% debenture (2025) 7 000 What was the total capital employed?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
19
A company buys and sells all of its inventory on a credit basis. The following information is available. $ purchases 450 000 sales 500 000 trade payables 80 000 trade receivables 120 000 Which period of credit was taken by customers?
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
25
A business calculates its overhead absorption rates on the basis of direct labour hours. For the month of October the following information is available. $ budgeted overhead expenditure 15 000 budgeted direct labour hours 5 000 actual overhead expenditure 15 800 actual direct labour hours worked 4 000 What was the under or over absorption of overheads for October?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
4. Cost and management accounting (A Level)  →  4.1. Activity based costing (ABC)
Open
29
The following budgeted information relates to a business that manufactures two products. product X $ product Y $ selling price per unit marginal cost per unit The budgeted fixed costs for the period are $400 000. The forecasted sales quantity of product X for the period is 25 000 units. The business has a target profit for the period of $180 000. How many units of product Y must be sold to achieve the target profit for the period?
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