9706_w22_qp_13
A paper of Accounting, 9706
Questions:
30
Year:
2022
Paper:
1
Variant:
3
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3
On 1 January 2020 a business purchased new delivery vehicles. The following information is available. $ total purchase cost 300 000 cost of painting delivery vehicles in the company’s colours 4 000 total annual maintenance cost 16 000 The company depreciates delivery vehicles using the reducing balance method at a rate of 40% per annum. What is the depreciation charge for the delivery vehicles for the year ended 31 December 2021?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
6
The balance of a purchases ledger control account was $7270. However, the total of the accounts of trade payables was $6860. The following errors have been discovered. A credit note received from a supplier for $100 had been omitted from the book of prime entry. The discounts received column in the cash book had been understated by $50. When these errors were corrected the balance on the purchases ledger control account still did not match the total of the accounts of trade payables. What were the updated amounts after the corrections?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
9
A business has calculated its draft profit for the year. The following information was then discovered. Closing inventory had been overvalued. Irrecoverable debts needed to be written off. Depreciation of non-current assets needed to be reduced. What is the effect on the profit for the year when these items are adjusted?
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
10
A business makes a provision for doubtful debts of 4%. At 31 March 2021 the value of trade receivables after deducting the provision was $153 600. For the year ended 31 March 2022, there was an increase of $960 in the provision for doubtful debts. What was the value of trade receivables at 31 March 2022 after deducting the provision for doubtful debts?
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
13
On 1 January 2022 a sole trader’s inventory was valued at $4500. On 14 April 2022 there was a fire in his business premises. Up to 14 April 2022 his sales were $24 600 and his purchases were $16 700. He worked on a mark-up of 33 %. Goods which had cost $1485 were saved from the fire. This included some goods which had cost $800 but as a result of the fire damage can now only be sold for $650. What was the total inventory loss for the business?
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
15
L and M were in partnership sharing profits and losses equally. They admitted a new partner, P. The partners do not have a partnership agreement. The terms of P’s admission were as follows: Assets were revalued downwards by $60 000. Goodwill was valued at $30 000 but was not retained in the books of account. What will be the effect on L’s capital account balance on the admission of P?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
16
J and K are in partnership sharing residual profits and losses in the ratio 7 : 3. Their fixed capital accounts have balances of J $40 000, K $60 000. Interest is allowed on these at the rate of 10% per year. J is paid a salary of $40 000 per year. Profit for the year was $200 000. What was each partner’s total share of the profit for the year?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
17
X, Y and Z were in partnership sharing profits and losses equally. Z retired from the partnership on 31 March 2022. The balances on his capital account and current account were $85 000 and $7000 debit respectively. After Z’s retirement, X and Y would share profits and losses equally. Goodwill was valued at $24 000 and would not remain in the books of accounts. As part of the amount due to him, Z took a motor vehicle at an agreed valuation of $4000. The other non-current assets were revalued downwards by $15 000. The remaining amount due to Z would be paid equally by X and Y. How much would X pay to Z?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
18
Draft financial statements for a company showed a balance of retained earnings of $170 000 at the year end. The following information was then discovered. An irrecoverable debt of $25 000 should have been written off. An ordinary share dividend, $30 000, had been paid but not recorded. Closing inventory was undervalued by $15 000. What was the correct balance of retained earnings at the year end?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
19
A company provided the following information. at 1 January $ ordinary shares of $1 each 100 000 retained earnings 95 000 The following actions took place during the year ended 31 December. A bonus issue of one ordinary share for every two ordinary shares held on 1 January. A rights issue of 50 000 ordinary shares at $1.25 each. The issue was fully subscribed. A transfer, $25 000, to create a general reserve. A dividend, $11 250, was paid. The profit for the year ended 31 December was $68 500. What was the total shareholders’ equity at 31 December?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
Open
23
Workers are paid a basic rate of $10 per hour. Overtime rate is paid at time and a half. Bonus is paid at a rate of 10% of basic pay if production exceeds its target. The following information is available for a month. total hours worked hours at basic rate target production 12 500 units actual production 15 000 units What was the total factory labour cost for the month?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
Open
28
The following information is available for a month. $ sales revenue 160 000 total costs 105 000 variable overheads (included in total costs) 26 000 When calculating the contribution to sales ratio, the book-keeper treated the variable overheads as fixed by mistake. What was the effect of this on the contribution to sales ratio?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
Open