9706_w24_qp_12
A paper of Accounting, 9706
Questions:
30
Year:
2024
Paper:
1
Variant:
2
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8
The totals of the trial balance of a business did not agree. The following errors were discovered. The wages account had been overcast by $550. The sales account had been undercast by $400. A credit sale of $150 had been recorded on the sales invoice as $510. After the appropriate corrections were made, the trial balance totals agreed. What was the difference between the trial balance totals before the corrections were made?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
1. Financial accounting (AS Level)  →  1.2. The accounting system
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13
A company prepared a sales ledger control account. The balance did not agree with the total of the sales ledger balances, which were $42 650. The following errors or omissions were discovered. An irrecoverable debt of $500 in the general journal has not been recorded in the sales ledger. The sales journal has been incorrectly added and must be reduced by $750. The sales ledger control account includes the discount received of $400. It should have been discount allowed, $600. Sales to J Brown of $640 have not been entered in his account. What was the correct total of the sales ledger balances?
1. Financial accounting (AS Level)  →  1.4. Reconciliation and verification
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15
The following information is available for a sole trader. $ allowance for irrecoverable debts at the start of the year total trade receivables at the end of the year At the end of the year it was decided to write off $1000 as irrecoverable debts and maintain the allowance for irrecoverable debts at 3% of trade receivables. What is the entry in the allowance for irrecoverable debts account?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.2. The accounting system
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16
A sole trader’s statement of profit or loss shows the following information. $ opening inventory operating expenses profit for the year Closing inventory is 10% less than opening inventory. All goods sold are marked up by 50%. What were the 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)  →  1.5. Preparation of financial statements
Open
17
L and M are in partnership, sharing profits and losses in the ratio of 3:2. They have the following current account balances. M $ L $ 4500 debit 6200 debit 3000 credit 14200 credit 31 March 2023 31 March 2024 The balances at 31 March 2024 are after taking into account the following: M $ L $ interest on drawings interest on capital drawings What was the residual profit to be shared between L and M for the year ended 31 March 2024?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
Open
19
The statement of financial position of a company at 31 December showed the following: $ issued share capital: 200000 ordinary shares at $1 per share During the following year, the company carried out the following: On 1 January made a rights issue of one ordinary share for every five ordinary shares held. The share issue price was $1.50 per ordinary share and the issue was fully subscribed. On 1 July made a bonus issue of one ordinary share for every four ordinary shares held at that date. What was the amount of cash received by the company in respect of these transactions?
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
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21
A company’s return on capital employed decreased to 10% in the current year from 15% in the previous year. The directors have noted the following changes during the current year. A substantial investment in non-current assets was funded by new debentures. There was an increase in current liabilities. The expenses to revenue ratio increased. The rate of interest on the company’s large overdraft increased. Which changes could explain the decrease in the return on capital employed?
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.5. Preparation of financial statements
1. Financial accounting (AS Level)  →  1.3. Accounting for non-current assets
Open
29
The financial information for selling 6000 units in August was as follows: $ per unit selling price variable costs fixed costs profit The selling price was reduced by 10% in September. Which level of sales was needed in September to achieve the same total profit as August?
4. Cost and management accounting (A Level)  →  4.3. Budgeting and budgetary control
3. Financial accounting (A Level)  →  3.1. Preparation of financial statements
2. Cost and management accounting (AS Level)  →  2.1. Costs and cost behaviour
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