9706_w24_qp_11
A paper of Accounting, 9706
Questions:
30
Year:
2024
Paper:
1
Variant:
1
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7
A business depreciates its non-current assets at 20% using the straight-line method. Depreciation is calculated on a time basis in the year of acquisition and disposal. $ non-current assets, at cost, 31 December (previous year) purchase of machinery 1 January (current year) disposal of machinery 30 September (current year) non-current assets, at cost, 31 December (current year) What is the depreciation charge for non-current assets for the current year ended 31 December?
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
8
The following errors were found after a suspense account was opened. A cash purchase of goods for resale for $450 had been completely omitted from the books. A payment for electricity was debited in the electricity account as $2500 instead of $5200. Discount allowed of $50 had been debited to the discounts received account. Motor repairs of $400 were credited to the motor vehicle at cost account. Which errors would be entered in the suspense account?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
11
The opening balance on a purchases ledger control account was $18400. The following errors or omissions were then discovered. A supplier’s invoice for $860 had been entered as $680 in the purchases journal. An item for $250 in the purchases returns journal had been credited to the supplier’s account. Discounts received of $400 had been credited to the purchases ledger control account. It had been agreed to set-off $150 owing to a customer against their account in the sales ledger. No entries had been made to the sales or purchases ledger control accounts. What was the corrected balance on the purchases ledger control account?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
Open
14
Lu had the following capital account balances. End of year 2 End of year 1 $63400 $45700 During year 2 the following took place: cash drawings $33000 personal motor vehicle introduced to the business at a value of $24500. Expenses for the year include a payment for rent of $10000, of which 40% was for Lu’s personal use. What was his profit for year 2?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
15
A business maintains an allowance for irrecoverable debts of 2% of trade receivables. At the beginning of the financial year on 1 January the trade receivables total was $48000. At the end of the financial year on 31 December the trade receivables total was $37000. When the business owner prepared the statement of profit or loss for the year ended 31 December, an irrecoverable debt of $1600 which had occurred during the year had not been written off. No adjustment had been made to deal with the allowance for irrecoverable debts at 31 December. By which amount was the profit for the year overstated?
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
17
P and Q are in partnership sharing profits and losses equally. The following information is available in respect of P. $ current account credit balance at start of the year share of asset revaluation drawings The total partnership profit for the year was $130000. Partnership salaries were P $20000, Q $30000. What was the balance on the current account of P at the end of 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
19
The following information is provided for a company for the financial year ended 31 March. $ revenue administrative expenses finance costs distribution costs dividend paid There were no other expenses for this period. The company adds a uniform mark-up of 25% on all goods sold. What was the profit from operations for the year ended 31 March?
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
23
X Limited leases a piece of equipment to perform quality inspections. This costs $8000 per annum plus $2 for each inspection performed. An inspection is performed on every tenth item produced. Production is 120000 units per year. Which type of cost is incurred and what is the annual cost?
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
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
24
A business uses the weighted average cost (AVCO) method of inventory valuation. During March the following transactions took place. opening inventory 200 units at $6.00 per unit 1 March received 300 units at $6.50 per unit 14 March issued 250 units to production at $7.00 per unit 20 March received 100 units at $6.70 per unit 28 March What is the value of inventory at 31 March?
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
Open
25
Ammu provided the following information about a specific job to make jewellery for a wedding. Cost of materials required is $10000. Ammu needs 10 hours at $125 per hour to design the jewellery. Her assistant needs 100 hours at $70 per hour to make the jewellery. Fixed overheads are absorbed at $50 per labour hour. A mark-up of 20% is to be applied. What will be the price quoted for the job to make the jewellery for the wedding?
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
Open
27
The canteen costs of a business have been apportioned to production departments 1 and 2. Total canteen costs apportioned to production department 1 were $40200. Of these, $3900 could be attributed to a special function by production department 1. The remainder were apportioned on the basis of employee numbers, which were 15 for production department 1 and 10 for production department 2. What were the total canteen costs for the whole business?
2. Cost and management accounting (AS Level)  →  2.2. Traditional costing methods
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