9706_w20_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2020
Paper:
1
Variant:
2
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6
A trader prepared a trial balance which did not balance. The difference was posted to a suspense account. The following errors have now been found. The returns inwards account had been overcast by $90. A payment of $200 for rent had been entered correctly in the cash book but had not been posted to the rent account. What was the opening balance on the suspense account?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
11
Ali’s trade receivables at 31 December 2019 were $26 500. He knew that $400 of these were irrecoverable. He wished to maintain a provision for doubtful debts equal to 5% of the trade receivables. At 1 January 2019 the balance of the provision for doubtful debts was $1200. Which entry does Ali make in the provision for doubtful debts account at 31 December 2019?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
12
Adil and Bashir were in partnership sharing profits and losses in the ratio 2 : 1. Chandra joins the partnership and profits and losses are now to be shared between Adil, Bashir and Chandra in the ratio 3 : 2 : 1. The balances of the partners’ capital accounts prior to Chandra joining the partnership are as follows: $ Adil 20 000 Bashir 10 000 Goodwill is to be valued at $36 000 and is not to be retained in the books of account. What is the balance on Adil’s capital account after Chandra joined the partnership?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
14
John and Brian are in partnership sharing profits and losses equally. John receives a salary of $2000 per annum. Brian loaned the business $5000. He is entitled to interest of 5% per annum. The profit for the year before appropriation was $24 000. During the year John took drawings of $3000. What will be the amount of residual profit Brian will receive for the year?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
17
Information relating to W Limited for the year ended 31 December 2019 was as follows: $ retained earnings at 1 January 2019 22 000 profit from operations 83 000 dividend paid 20 000 dividend proposed 15 000 bank loan interest 16 000 What was the amount of retained earnings at 31 December 2019?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.5. Analysis and communication of accounting information
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
19
The following information is available. $ $ revenue 600 000 opening inventory 46 000 purchases 244 000 290 000 closing inventory 50 000 240 000 gross profit 360 000 expenses 150 000 profit from operations 210 000 What was the rate of inventory turnover (in times)?
1. Financial accounting (AS Level)  →  1.6. Analysis and communication of accounting information
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
20
A company’s financial statements for the year ended 31 December showed the following: $ issued share capital 150 000 non-current liabilities 280 000 reserves including retained earnings 250 000 The company’s profit from operations was $160 000 and the profit for the year was $120 000. What was the company’s return on capital employed?
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