9706_w22_qp_11
A paper of Accounting, 9706
Questions:
30
Year:
2022
Paper:
1
Variant:
1
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3
On 1 April 2021 a business purchased a machine for $120 000 with an estimated residual value of $12 000. On 1 July 2022 the machine was sold for $100 000. Machinery is depreciated at the rate of 20% per annum using the straight-line method. Depreciation is calculated for each month of ownership. Which entry should be made in the provision for depreciation of machinery account for the disposal of the machine?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
7
The balance on a purchases ledger control account at 1 March was $71 300. During the month ended 31 March, the following transactions took place. $ payments to trade payables by cheque 133 200 credit purchases 149 000 purchases returns 3 000 cash purchases 2 000 contra with sales ledger 1 600 What was the trade payables balance at 31 March?
1. Financial accounting (AS Level)  →  1.2. The accounting system
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
11
A trader had the following closing trade receivables. year $ 64 000 80 000 90 000 He usually provides for doubtful debts at the rate of 5%. At the end of year 2 he forgot to adjust the provision. What was the effect on profit in year 3 of forgetting to adjust the provision in year 2?
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)  →  1.4. Reconciliation and verification
Open
12
The following information is available for the year ended 31 December 2021. $ revenue 1 400 000 inventory as at 1 January 2021 140 000 inventory as at 31 December 2021 148 000 The trader uses a mark-up of 60% on all purchases. What was the value of purchases for the year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
1. Financial accounting (AS Level)  →  1.2. The accounting system
Open
13
The following information is available for a business for the year ended 31 March 2022. $ non-current assets at cost at 1 April 2021 62 000 provision for depreciation on non-current assets at 1 April 2021 12 000 expenses paid by cash and cheques during the year 42 200 expenses prepaid at 31 March 2022 4 600 trade receivables at 31 March 2022 25 000 A provision for doubtful debts is to be created at 2% of trade receivables. Depreciation on non-current assets is to be provided at 20% using the reducing balance method. What was the total of expenses for the year?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
18
The following items were taken from the financial statements of a limited company during a period. $ increase in trade receivables 6 000 increase in trade payables 4 000 loan repaid 10 000 What was the effect of these items on the net cash inflow or outflow for the period?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
4. Cost and management accounting (A Level)  →  4.4. Investment appraisal
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
19
The following information is available for a limited company. At 1 April 2021 the balance of the retained earnings account was $858 000. for the year ended 31 March 2022 $ profit from operations 978 000 debenture interest paid for the year 100 000 ordinary share dividends paid 150 000 On 31 March 2022 the directors transferred $280 000 to a general reserve. They also issued 250 000 bonus shares of $1 each using the general reserve. What was the balance of the retained earnings account at 31 March 2022?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
27
A company manufactures and sells a single product. The following information is available about a unit of the product. $ selling price direct materials direct labour The supplier of direct materials has agreed to increase the trade discount from 10% to 20%. What is the new contribution per unit?
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)  →  4.2. Standard costing
Open
29
A business manufactures three types of products which all use the same material. The following information is available. X $ Y $ Z $ selling price direct material direct labour variable overhead contribution Direct material is in short supply. In which order should the products be manufactured to maximise profits?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
4. Cost and management accounting (A Level)  →  4.2. Standard costing
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
Open