A Level Accounting Papers Nov2010
of 145
-
Upload
frieda20093835 -
Category
Documents
-
view
306 -
download
12
Transcript of A Level Accounting Papers Nov2010
-
7/27/2019 A Level Accounting Papers Nov2010
1/145
A-Level Past Papers Accounting
A-Level Examinations October/November 2010
Paper Pages
Multiple ChoiceP1 - 9706/11 2 - 13
P1 9706/12 14 - 25
P1 9706/13 26 37
Structured Questions
P2 9706/21 38 53
P2 9706/22 54 69
P2 9706/23 70 85
Multiple Choice
P3 9706/31 86 97
P3 9706/32 98 109
P3 9706/33 110 121
Problem Solving
P4 9706/41 122 129
P4 9706/42 130 137
P4 9706/43 138 145
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
2/145
This document consists of12 printed pages.
IB10 11_9706_11/6RP UCLES 2010 [Turn over
*305424
2948*
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONSGeneral Certificate of EducationAdvanced Subsidiary Level and Advanced Level
ACCOUNTING 9706/11
Paper 1 Multiple Choice October/November 2010
1 hour
Additional Materials: Multiple Choice Answer SheetSoft clean eraserSoft pencil (type B or HB is recommended)
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the Answer Sheet in the spaces providedunless this has been done for you.
There are thirty questions on this paper. Answerall questions. For each question there are four possibleanswers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.Calculators may be used.
www.sheir.org
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
3/145
2
UCLES 2010 9706/11/O/N/10
1 On 1 January 2009 a business had prepaid rent of $50. During 2009, three rent payments weremade of $250 each. On 31 December 2009, the business still owes $200 rent on account for2009.
The business owner has charged the rent payments made during 2009 in his income (profit andloss) account.
What is the effect on net profit?
A $200 too high
B $200 too low
C $250 too high
D $250 too low
2 A customer paid a deposit in advance for goods to be supplied at a later date.
How should this be recorded in the sellers books?
debit credit
A cash customer
B cash sales
C customer prepayment
D customer sales
3 Non current (fixed) assets of a company were:
start of year$
end of year$
at cost 460 000 505 000
cumulative depreciation 215 000 237 000
net book value 245 000 268 000
During the year non current (fixed) assets costing $92 000 were purchased and non current(fixed) assets with a net book value of $16 000 were sold.
What was the depreciation charge for the year?
A $22 000 B $23 000 C $53 000 D $69 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
4/145
3
UCLES 2010 9706/11/O/N/10 [Turn over
4 What does the application of the accounting principle of consistency ensure?
A that all losses are provided for
B that assets are recorded at their actual cost
C that financial statements are produced annually
D that profits are calculated the same way each year
5 At 30 June the balance sheet of a business includes the following.
$
trade receivables (debtors) 46 000
provision for doubtful debts 5% 2 300
During July, sales of $350 000 were made of which 20 % were in cash. Credit customers paid$303 800 after deducting a 2% cash discount.
How much did the trade receivables (debtors) owe to the business at 31 July?
A $15 200 B $16 000 C $22 200 D $76 000
6 Which error will not affect the trial balance?
A posting of $3000 purchases to the debit of the motor vehicle account
B posting of $3000 purchases to the credit of the motor vehicle accountC posting of $3000 road tax refund to the debit of the motor vehicle account
D posting of $3000 sales to the debit of the motor vehicle account
7 Closing inventory (stock) has been overvalued.
What is the effect on the financial statements?
net current assets net profit
A no effect understated
B overstated no effect
C overstated overstated
D understated understated
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
5/145
4
UCLES 2010 9706/11/O/N/10
8 The trade receivable (debtors) control account of Y shows a balance of $14 320.
Customer X, who owes Y $1000, has also supplied Y with $400 of goods.
The supply of goods, $400, is to be offset by Y.
What is the corrected trade receivable (debtors) control account balance?
A $13 720 B $13 920 C $14 720 D $14 920
9 An electricity accrual of $375 was treated as a prepayment in preparing a traders income (profitand loss) account.
What was the effect on profit?
A overstated by $375
B overstated by $750
C understated by $375
D understated by $750
10 At the end of a financial year the following information is available.
$
sales 200 000
opening inventory (stock) 15 000
closing inventory (stock) 18 000
If the business makes a standard mark-up of 25%, what were the purchases?
A $147 000 B $153 000 C $157 000 D $163 000
11 For the eleven months ended 31 August 2009, snack bar takings were correctly recorded at$109 340. For September 2009, the snack bar takings were mixed up with other income. Thesnack bar profit margin was 30.%.
The table shows figures for the snack bar for September 2009.
$
opening inventory (stock) at cost 6 303
purchases 8 844
closing inventory (stock) at cost 7 370
What was the gross profit of the snack bar for the year ended 30 September 2009?
A $27 566 B $36 135 C $36 593 D $43 912
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
6/145
5
UCLES 2010 9706/11/O/N/10 [Turn over
12 Information relating to a clubs subscription is:
$
received during the year 20 000
paid in advance in the previous year 2 000paid in advance during the current year 1 000
There were no subscriptions in arrears at the start or end of the year.
Individual subscriptions have remained constant at $500 per annum for the last two years.
How many members does the club have?
A 38 B 40 C 42 D 44
13 X and Y are in partnership, sharing residual profits and losses equally after the payments beloware made.
1 2% interest is charged on partners drawings
2 salary to Y of $10 000
The partners drawings for the year were:
X $12 000
Y $8000
The net profit for the current year is $52 000.
How much will each partner receive in share of residual profits?
A $10 800 B $11 200 C $20 800 D $21 200
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
7/145
6
UCLES 2010 9706/11/O/N/10
14 The table shows data for a manufacturing company for a year.
$
office salaries 34 500
factory wages 115 000depreciation on plant 3 700
depreciation on office equipment 1 500
cost of raw materials 89 600
royalties paid 4 200
closing inventory (stock) of completed goods 5 100
What is the production cost of completed goods for the year?
A $203 000 B $208 300 C $212 500 D $214 000
15 A company has the following current assets and current liabilities.
$
bank deposit account 6 000
bank overdraft 4 500
loan interest payable 2 500
deposits from customers (for orders) 1 500
loans to employees 4 000
trade payables (creditors) 9 000
trade receivables (debtors) 12 000
What is the amount of the net current assets?
A $(3500) B $4500 C $7500 D $13 500
16 X started a business 3 years ago and now has a capital of $175 000.
Over that period his profits have been $73 000 and his drawings $52 000. In year 2 he introducedcash of $35 000 and in year 3 he took out of the business, for his own use, a non current (fixed)asset with a net book value of $4000.
How much capital did he start the business with?
A $67 000 B $115 000 C $123 000 D $158 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
8/145
7
UCLES 2010 9706/11/O/N/10 [Turn over
17 A business has two departments, mens clothing and ladies clothing. The following information isavailable.
mens department ladies department
sales assistants 7 9
floor space 160m2 200m2
value of non current (fixed) assets $59 000 $61 000
annual sales $450 000 $750 000
The cost of heating and lighting is $17 692.
What is the cost of heating and lighting for the mens department?
A $6634.50 B $7740.25 C $7863.11 D $8698.57
18 A company makes a bonus issue of shares.
What is the effect on the net assets and the reserves in the balance sheet?
net assets reserves
A increase decrease
B increase unchanged
C unchanged decrease
D unchanged increase
19 The table shows extracts from the trial balance of a company at 31 December 2009.
$
ordinary share capital 750 000
8% preference shares 250 000
6% debentures (2015) 150 000
bank loan repayable (2012) 75 000
bank overdraft 110 000
mortgage on buildings (repayable 2010) 120 000
What is the total of non current liabilities in the balance sheet at 31 December 2009?
A $195 000 B $225 000 C $345 000 D $595 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
9/145
8
UCLES 2010 9706/11/O/N/10
20 A companys share capital and reserves are:
$
non current (fixed) assets 250 000
net current assets 125 000375 000
share capital and reserves
150 000 shares $1 each 150 000
share premium 75 000
general reserve 125 000
profits retained 25 000
375 000
The directors propose to issue bonus shares on the basis of one $1 share for every three alreadyheld.
Following this the directors intend to make a rights issue on the basis of one new $1 share forevery four shares held, at a premium of $0.20 per share.
What will the total net assets of the company be after the share issues?
A $425 000 B $435 000 C $475 000 D $485 000
21 A business has current liabilities of $4000 at its year end.
The quick (acid test) ratio is 1.5:1
The current ratio is 2.25:1
What is the value of inventory (stock) held at the year end?
A $3000 B $4000 C $9000 D $15 000
22A companys gross profit ratio for the year ended 31 December 2008 was 25
%. This increases to28% for the year ended 31 December 2009.
What could have been responsible for the increase?
A an increase in the cost of purchases during 2009
B an increase in the volume of sales during 2009
C an over-valuation of inventory (stock) as at 31 December 2009
D an under-valuation of inventory (stock) as at 31 December 2009
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
10/145
9
UCLES 2010 9706/11/O/N/10 [Turn over
23 A business has the following assets and liabilities.
$000 $000
non current (fixed) assets 420
inventory (stocks) 120trade receivables (debtors) 310
430
trade payables (creditors) (220)
net current assets 210
total assets less current liabilities 630
long term loan (130)
net assets 500
What is the business's quick (acid test) ratio?
A 1.41 : 1 B 1.95 : 1 C 2.43 : 1 D 3.86 : 1
24 The table shows the year end information for three companies.
companysales
$operating profit as %
of all salescapital employed
$
X 500 000 15 100 000
Y 200 000 8 40 000
Z 400 000 10 80 000
How should the companies rank in order of return on the actual capital employed?
return on capital employed
highest lowest
A X Z Y
B Y Z X
C Z X Y
D Z Y X
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
11/145
10
UCLES 2010 9706/11/O/N/10
25 In a job costing system, what is the correct entry to record the return of unused direct materialsfrom production to stores?
debit credit
A cost of sales work in progress
B stores control finished goods
C stores control work in progress
D work in progress stores control
26 A company manufactures two products.
product X$
product Y$
selling price 20 30
direct labour (per unit) 10 20
direct materials (per unit) 4 2
Total fixed costs are $48 000.
Only 3000 units of Y can be made and sold.
How many units of product X must be made and sold to break even?
A 1800 B 3000 C 4000 D 8000
27 A factory produces a product with a variable cost of $0.60 per unit.
Fixed costs are $15 000 per quarter, including rent of $6000 per quarter.
If more than 20 000 units are made per quarter, additional space is required which increases therent by 50%.
What is the total cost per unit of producing 30 000 units in a quarter?
A $0.60 B $0.90 C $1.10 D $1.20
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
12/145
11
UCLES 2010 9706/11/O/N/10 [Turn over
28 A manufacturer has 700 units of finished goods in stock on 1 March.
On 31 March the total number of units in stock is 770.
At present, stock is valued using the total costing method.
What would be the effect on the operating profit if the marginal costing method is used for stockvaluation?
A increase operating profit
B no change in operating profit
C no change in operating profit but a 10% increase in gross profit
D reduce operating profit
29 A job cost sheet showed the following estimates.
$
materials 680
labour at $20 per hour 200
overheads at $10 per labour hour 100
profit 280
price of job 1 260
The job actually took 25% more labour hours than were estimated.
What was the profit?
A $205 B $230 C $330 D $355
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
13/145
12
Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Everyreasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, thepublisher will be pleased to make amends at the earliest possible opportunity.
University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University ofCambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.
UCLES 2010 9706/11/O/N/10
30 The diagram shows a break-even chart.
Y
X
number of units
$
0
What is indicated by the line XY?
A total costs
B total fixed costs
C total sales
D total variable costs
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
14/145
This document consists of12 printed pages.
IB10 11_9706_12/RP UCLES 2010 [Turn over
*201307
5856*
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONSGeneral Certificate of EducationAdvanced Subsidiary Level and Advanced Level
ACCOUNTING 9706/12
Paper 1 Multiple Choice October/November 2010
1 hour
Additional Materials: Multiple Choice Answer SheetSoft clean eraserSoft pencil (type B or HB is recommended)
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the Answer Sheet in the spaces providedunless this has been done for you.
There are thirty questions on this paper. Answerall questions. For each question there are four possibleanswers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.Calculators may be used.
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
15/145
2
UCLES 2010 9706/12/O/N/10
1 On 1 January 2009 a business had prepaid rent of $50. During 2009, three rent payments weremade of $250 each. On 31 December 2009, the business still owes $200 rent on account for2009.
The business owner has charged the rent payments made during 2009 in his income (profit andloss) account.
What is the effect on net profit?
A $200 too high
B $200 too low
C $250 too high
D $250 too low
2 A customer paid a deposit in advance for goods to be supplied at a later date.
How should this be recorded in the sellers books?
debit credit
A cash customer
B cash sales
C customer prepayment
D customer sales
3 Non current (fixed) assets of a company were:
start of year$
end of year$
at cost 460 000 505 000
cumulative depreciation 215 000 237 000
net book value 245 000 268 000
During the year non current (fixed) assets costing $92 000 were purchased and non current(fixed) assets with a net book value of $16 000 were sold.
What was the depreciation charge for the year?
A $22 000 B $23 000 C $53 000 D $69 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
16/145
3
UCLES 2010 9706/12/O/N/10 [Turn over
4 What does the application of the accounting principle of consistency ensure?
A that all losses are provided for
B that assets are recorded at their actual cost
C that financial statements are produced annually
D that profits are calculated the same way each year
5 At 30 June the balance sheet of a business includes the following.
$
trade receivables (debtors) 46 000
provision for doubtful debts 5% 2 300
During July, sales of $350 000 were made of which 20 % were in cash. Credit customers paid$303 800 after deducting a 2% cash discount.
How much did the trade receivables (debtors) owe to the business at 31 July?
A $15 200 B $16 000 C $22 200 D $76 000
6 Which error will not affect the trial balance?
A posting of $3000 purchases to the debit of the motor vehicle account
B posting of $3000 purchases to the credit of the motor vehicle accountC posting of $3000 road tax refund to the debit of the motor vehicle account
D posting of $3000 sales to the debit of the motor vehicle account
7 Closing inventory (stock) has been overvalued.
What is the effect on the financial statements?
net current assets net profit
A no effect understated
B overstated no effect
C overstated overstated
D understated understated
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
17/145
4
UCLES 2010 9706/12/O/N/10
8 The trade receivable (debtors) control account of Y shows a balance of $14 320.
Customer X, who owes Y $1000, has also supplied Y with $400 of goods.
The supply of goods, $400, is to be offset by Y.
What is the corrected trade receivable (debtors) control account balance?
A $13 720 B $13 920 C $14 720 D $14 920
9 An electricity accrual of $375 was treated as a prepayment in preparing a traders income (profitand loss) account.
What was the effect on profit?
A overstated by $375
B overstated by $750
C understated by $375
D understated by $750
10 At the end of a financial year the following information is available.
$
sales 200 000
opening inventory (stock) 15 000
closing inventory (stock) 18 000
If the business makes a standard mark-up of 25%, what were the purchases?
A $147 000 B $153 000 C $157 000 D $163 000
11 For the eleven months ended 31 August 2009, snack bar takings were correctly recorded at$109 340. For September 2009, the snack bar takings were mixed up with other income. Thesnack bar profit margin was 30.%.
The table shows figures for the snack bar for September 2009.
$
opening inventory (stock) at cost 6 303
purchases 8 844
closing inventory (stock) at cost 7 370
What was the gross profit of the snack bar for the year ended 30 September 2009?
A $27 566 B $36 135 C $36 593 D $43 912
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
18/145
5
UCLES 2010 9706/12/O/N/10 [Turn over
12 Information relating to a clubs subscription is:
$
received during the year 20 000
paid in advance in the previous year 2 000paid in advance during the current year 1 000
There were no subscriptions in arrears at the start or end of the year.
Individual subscriptions have remained constant at $500 per annum for the last two years.
How many members does the club have?
A 38 B 40 C 42 D 44
13 X and Y are in partnership, sharing residual profits and losses equally after the payments beloware made.
1 2% interest is charged on partners drawings
2 salary to Y of $10 000
The partners drawings for the year were:
X $12 000
Y $8000
The net profit for the current year is $52 000.
How much will each partner receive in share of residual profits?
A $10 800 B $11 200 C $20 800 D $21 200
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
19/145
6
UCLES 2010 9706/12/O/N/10
14 The table shows data for a manufacturing company for a year.
$
office salaries 34 500
factory wages 115 000depreciation on plant 3 700
depreciation on office equipment 1 500
cost of raw materials 89 600
royalties paid 4 200
closing inventory (stock) of completed goods 5 100
What is the production cost of completed goods for the year?
A $203 000 B $208 300 C $212 500 D $214 000
15 A company has the following current assets and current liabilities.
$
bank deposit account 6 000
bank overdraft 4 500
loan interest payable 2 500
deposits from customers (for orders) 1 500
loans to employees 4 000
trade payables (creditors) 9 000
trade receivables (debtors) 12 000
What is the amount of the net current assets?
A $(3500) B $4500 C $7500 D $13 500
16 X started a business 3 years ago and now has a capital of $175 000.
Over that period his profits have been $73 000 and his drawings $52 000. In year 2 he introducedcash of $35 000 and in year 3 he took out of the business, for his own use, a non current (fixed)asset with a net book value of $4000.
How much capital did he start the business with?
A $67 000 B $115 000 C $123 000 D $158 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
20/145
7
UCLES 2010 9706/12/O/N/10 [Turn over
17 A business has two departments, mens clothing and ladies clothing. The following information isavailable.
mens department ladies department
sales assistants 7 9
floor space 160m2 200m2
value of non current (fixed) assets $59 000 $61 000
annual sales $450 000 $750 000
The cost of heating and lighting is $17 692.
What is the cost of heating and lighting for the mens department?
A $6634.50 B $7740.25 C $7863.11 D $8698.57
18 A company makes a bonus issue of shares.
What is the effect on the net assets and the reserves in the balance sheet?
net assets reserves
A increase decrease
B increase unchanged
C unchanged decrease
D unchanged increase
19 The table shows extracts from the trial balance of a company at 31 December 2009.
$
ordinary share capital 750 000
8% preference shares 250 000
6% debentures (2015) 150 000
bank loan repayable (2012) 75 000
bank overdraft 110 000
mortgage on buildings (repayable 2010) 120 000
What is the total of non current liabilities in the balance sheet at 31 December 2009?
A $195 000 B $225 000 C $345 000 D $595 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
21/145
8
UCLES 2010 9706/12/O/N/10
20 A companys share capital and reserves are:
$
non current (fixed) assets 250 000
net current assets 125 000375 000
share capital and reserves
150 000 shares $1 each 150 000
share premium 75 000
general reserve 125 000
profits retained 25 000
375 000
The directors propose to issue bonus shares on the basis of one $1 share for every three alreadyheld.
Following this the directors intend to make a rights issue on the basis of one new $1 share forevery four shares held, at a premium of $0.20 per share.
What will the total net assets of the company be after the share issues?
A $425 000 B $435 000 C $475 000 D $485 000
21 A business has current liabilities of $4000 at its year end.
The quick (acid test) ratio is 1.5:1
The current ratio is 2.25:1
What is the value of inventory (stock) held at the year end?
A $3000 B $4000 C $9000 D $15 000
22A companys gross profit ratio for the year ended 31 December 2008 was 25
%. This increases to28% for the year ended 31 December 2009.
What could have been responsible for the increase?
A an increase in the cost of purchases during 2009
B an increase in the volume of sales during 2009
C an over-valuation of inventory (stock) as at 31 December 2009
D an under-valuation of inventory (stock) as at 31 December 2009
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
22/145
9
UCLES 2010 9706/12/O/N/10 [Turn over
23 A business has the following assets and liabilities.
$000 $000
non current (fixed) assets 420
inventory (stocks) 120trade receivables (debtors) 310
430
trade payables (creditors) (220)
net current assets 210
total assets less current liabilities 630
long term loan (130)
net assets 500
What is the business's quick (acid test) ratio?
A 1.41 : 1 B 1.95 : 1 C 2.43 : 1 D 3.86 : 1
24 The table shows the year end information for three companies.
companysales
$operating profit as %
of all salescapital employed
$
X 500 000 15 100 000
Y 200 000 8 40 000
Z 400 000 10 80 000
How should the companies rank in order of return on the actual capital employed?
return on capital employed
highest lowest
A X Z Y
B Y Z X
C Z X Y
D Z Y X
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
23/145
10
UCLES 2010 9706/12/O/N/10
25 In a job costing system, what is the correct entry to record the return of unused direct materialsfrom production to stores?
debit credit
A cost of sales work in progress
B stores control finished goods
C stores control work in progress
D work in progress stores control
26 A company manufactures two products.
product X$
product Y$
selling price 20 30
direct labour (per unit) 10 20
direct materials (per unit) 4 2
Total fixed costs are $48 000.
Only 3000 units of Y can be made and sold.
How many units of product X must be made and sold to break even?
A 1800 B 3000 C 4000 D 8000
27 A factory produces a product with a variable cost of $0.60 per unit.
Fixed costs are $15 000 per quarter, including rent of $6000 per quarter.
If more than 20 000 units are made per quarter, additional space is required which increases therent by 50%.
What is the total cost per unit of producing 30 000 units in a quarter?
A $0.60 B $0.90 C $1.10 D $1.20
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
24/145
11
UCLES 2010 9706/12/O/N/10 [Turn over
28 A manufacturer has 700 units of finished goods in stock on 1 March.
On 31 March the total number of units in stock is 770.
At present, stock is valued using the total costing method.
What would be the effect on the operating profit if the marginal costing method is used for stockvaluation?
A increase operating profit
B no change in operating profit
C no change in operating profit but a 10% increase in gross profit
D reduce operating profit
29 A job cost sheet showed the following estimates.
$
materials 680
labour at $20 per hour 200
overheads at $10 per labour hour 100
profit 280
price of job 1 260
The job actually took 25% more labour hours than were estimated.
What was the profit?
A $205 B $230 C $330 D $355
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
25/145
12
Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Everyreasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, thepublisher will be pleased to make amends at the earliest possible opportunity.
University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University ofCambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.
UCLES 2010 9706/12/O/N/10
30 The diagram shows a break-even chart.
Y
X
number of units
$
0
What is indicated by the line XY?
A total costs
B total fixed costs
C total sales
D total variable costs
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
26/145
This document consists of12 printed pages.
IB10 11_9706_13/FP UCLES 2010 [Turn over
*771900
5092*
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONSGeneral Certificate of EducationAdvanced Subsidiary Level and Advanced Level
ACCOUNTING 9706/13
Paper 1 Multiple Choice October/November 2010
1 hour
Additional Materials: Multiple Choice Answer SheetSoft clean eraserSoft pencil (type B or HB is recommended)
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the Answer Sheet in the spaces providedunless this has been done for you.
There are thirty questions on this paper. Answerall questions. For each question there are four possibleanswers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.Calculators may be used.
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
27/145
2
UCLES 2010 9706/13/O/N/10
1 A customer paid a deposit in advance for goods to be supplied at a later date.
How should this be recorded in the sellers books?
debit credit
A cash customer
B cash sales
C customer prepayment
D customer sales
2 Non current (fixed) assets of a company were:
start of year
$
end of year
$
at cost 460 000 505 000
cumulative depreciation 215 000 237 000
net book value 245 000 268 000
During the year non current (fixed) assets costing $92 000 were purchased and non current(fixed) assets with a net book value of $16 000 were sold.
What was the depreciation charge for the year?
A $22 000 B $23 000 C $53 000 D $69 000
3 What does the application of the accounting principle of consistency ensure?
A that all losses are provided for
B that assets are recorded at their actual cost
C that financial statements are produced annually
D that profits are calculated the same way each year
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
28/145
3
UCLES 2010 9706/13/O/N/10 [Turn over
4 At 30 June the balance sheet of a business includes the following.
$
trade receivables (debtors) 46 000
provision for doubtful debts 5% 2 300
During July, sales of $350 000 were made of which 20 % were in cash. Credit customers paid$303 800 after deducting a 2% cash discount.
How much did the trade receivables (debtors) owe to the business at 31 July?
A $15 200 B $16 000 C $22 200 D $76 000
5 Which error will not affect the trial balance?
A posting of $3000 purchases to the debit of the motor vehicle accountB posting of $3000 purchases to the credit of the motor vehicle account
C posting of $3000 road tax refund to the debit of the motor vehicle account
D posting of $3000 sales to the debit of the motor vehicle account
6 Closing inventory (stock) has been overvalued.
What is the effect on the financial statements?
net current assets net profit
A no effect understated
B overstated no effect
C overstated overstated
D understated understated
7 The trade receivable (debtors) control account of Y shows a balance of $14 320.
Customer X, who owes Y $1000, has also supplied Y with $400 of goods.
The supply of goods, $400, is to be offset by Y.
What is the corrected trade receivable (debtors) control account balance?
A $13 720 B $13 920 C $14 720 D $14 920
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
29/145
4
UCLES 2010 9706/13/O/N/10
8 An electricity accrual of $375 was treated as a prepayment in preparing a traders income (profitand loss) account.
What was the effect on profit?
A overstated by $375
B overstated by $750
C understated by $375
D understated by $750
9 At the end of a financial year the following information is available.
$
sales 200 000
opening inventory (stock) 15 000
closing inventory (stock) 18 000
If the business makes a standard mark-up of 25%, what were the purchases?
A $147 000 B $153 000 C $157 000 D $163 000
10 For the eleven months ended 31 August 2009, snack bar takings were correctly recorded at$109 340. For September 2009, the snack bar takings were mixed up with other income. The
snack bar profit margin was 30.%.
The table shows figures for the snack bar for September 2009.
$
opening inventory (stock) at cost 6 303
purchases 8 844
closing inventory (stock) at cost 7 370
What was the gross profit of the snack bar for the year ended 30 September 2009?
A $27 566 B $36 135 C $36 593 D $43 912
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
30/145
5
UCLES 2010 9706/13/O/N/10 [Turn over
11 Information relating to a clubs subscription is:
$
received during the year 20 000
paid in advance in the previous year 2 000paid in advance during the current year 1 000
There were no subscriptions in arrears at the start or end of the year.
Individual subscriptions have remained constant at $500 per annum for the last two years.
How many members does the club have?
A 38 B 40 C 42 D 44
12 X and Y are in partnership, sharing residual profits and losses equally after the payments beloware made.
1 2% interest is charged on partners drawings
2 salary to Y of $10 000
The partners drawings for the year were:
X $12 000
Y $8000
The net profit for the current year is $52 000.
How much will each partner receive in share of residual profits?
A $10 800 B $11 200 C $20 800 D $21 200
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
31/145
6
UCLES 2010 9706/13/O/N/10
13 The table shows data for a manufacturing company for a year.
$
office salaries 34 500
factory wages 115 000depreciation on plant 3 700
depreciation on office equipment 1 500
cost of raw materials 89 600
royalties paid 4 200
closing inventory (stock) of completed goods 5 100
What is the production cost of completed goods for the year?
A $203 000 B $208 300 C $212 500 D $214 000
14 A company has the following current assets and current liabilities.
$
bank deposit account 6 000
bank overdraft 4 500
loan interest payable 2 500
deposits from customers (for orders) 1 500
loans to employees 4 000
trade payables (creditors) 9 000
trade receivables (debtors) 12 000
What is the amount of the net current assets?
A $(3500) B $4500 C $7500 D $13 500
15 X started a business 3 years ago and now has a capital of $175 000.
Over that period his profits have been $73 000 and his drawings $52 000. In year 2 he introducedcash of $35 000 and in year 3 he took out of the business, for his own use, a non current (fixed)asset with a net book value of $4000.
How much capital did he start the business with?
A $67 000 B $115 000 C $123 000 D $158 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
32/145
7
UCLES 2010 9706/13/O/N/10 [Turn over
16 A business has two departments, mens clothing and ladies clothing. The following information isavailable.
mens department ladies department
sales assistants 7 9
floor space 160m2 200m2
value of non current (fixed) assets $59 000 $61 000
annual sales $450 000 $750 000
The cost of heating and lighting is $17 692.
What is the cost of heating and lighting for the mens department?
A $6634.50 B $7740.25 C $7863.11 D $8698.57
17 A company makes a bonus issue of shares.
What is the effect on the net assets and the reserves in the balance sheet?
net assets reserves
A increase decrease
B increase unchanged
C unchanged decrease
D unchanged increase
18 The table shows extracts from the trial balance of a company at 31 December 2009.
$
ordinary share capital 750 000
8% preference shares 250 000
6% debentures (2015) 150 000
bank loan repayable (2012) 75 000
bank overdraft 110 000
mortgage on buildings (repayable 2010) 120 000
What is the total of non current liabilities in the balance sheet at 31 December 2009?
A $195 000 B $225 000 C $345 000 D $595 000
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
33/145
8
UCLES 2010 9706/13/O/N/10
19 A companys share capital and reserves are:
$
non current (fixed) assets 250 000
net current assets 125 000375 000
share capital and reserves
150 000 shares $1 each 150 000
share premium 75 000
general reserve 125 000
profits retained 25 000
375 000
The directors propose to issue bonus shares on the basis of one $1 share for every three alreadyheld.
Following this the directors intend to make a rights issue on the basis of one new $1 share forevery four shares held, at a premium of $0.20 per share.
What will the total net assets of the company be after the share issues?
A $425 000 B $435 000 C $475 000 D $485 000
20 A business has current liabilities of $4000 at its year end.
The quick (acid test) ratio is 1.5:1
The current ratio is 2.25:1
What is the value of inventory (stock) held at the year end?
A $3000 B $4000 C $9000 D $15 000
21A companys gross profit ratio for the year ended 31 December 2008 was 25
%. This increases to28% for the year ended 31 December 2009.
What could have been responsible for the increase?
A an increase in the cost of purchases during 2009
B an increase in the volume of sales during 2009
C an over-valuation of inventory (stock) as at 31 December 2009
D an under-valuation of inventory (stock) as at 31 December 2009
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
34/145
9
UCLES 2010 9706/13/O/N/10 [Turn over
22 A business has the following assets and liabilities.
$000 $000
non current (fixed) assets 420
inventory (stocks) 120trade receivables (debtors) 310
430
trade payables (creditors) (220)
net current assets 210
total assets less current liabilities 630
long term loan (130)
net assets 500
What is the business's quick (acid test) ratio?
A 1.41 : 1 B 1.95 : 1 C 2.43 : 1 D 3.86 : 1
23 The table shows the year end information for three companies.
companysales
$operating profit as %
of all salescapital employed
$
X 500 000 15 100 000
Y 200 000 8 40 000
Z 400 000 10 80 000
How should the companies rank in order of return on the actual capital employed?
return on capital employed
highest lowest
A X Z Y
B Y Z X
C Z X Y
D Z Y X
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
35/145
10
UCLES 2010 9706/13/O/N/10
24 In a job costing system, what is the correct entry to record the return of unused direct materialsfrom production to stores?
debit credit
A cost of sales work in progress
B stores control finished goods
C stores control work in progress
D work in progress stores control
25 A company manufactures two products.
product X$
product Y$
selling price 20 30
direct labour (per unit) 10 20
direct materials (per unit) 4 2
Total fixed costs are $48 000.
Only 3000 units of Y can be made and sold.
How many units of product X must be made and sold to break even?
A 1800 B 3000 C 4000 D 8000
26 A factory produces a product with a variable cost of $0.60 per unit.
Fixed costs are $15 000 per quarter, including rent of $6000 per quarter.
If more than 20 000 units are made per quarter, additional space is required which increases therent by 50%.
What is the total cost per unit of producing 30 000 units in a quarter?
A $0.60 B $0.90 C $1.10 D $1.20
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
36/145
11
UCLES 2010 9706/13/O/N/10 [Turn over
27 A manufacturer has 700 units of finished goods in stock on 1 March.
On 31 March the total number of units in stock is 770.
At present, stock is valued using the total costing method.
What would be the effect on the operating profit if the marginal costing method is used for stockvaluation?
A increase operating profit
B no change in operating profit
C no change in operating profit but a 10% increase in gross profit
D reduce operating profit
28 A job cost sheet showed the following estimates.
$
materials 680
labour at $20 per hour 200
overheads at $10 per labour hour 100
profit 280
price of job 1 260
The job actually took 25% more labour hours than were estimated.
What was the profit?
A $205 B $230 C $330 D $355
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
37/145
12
Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Everyreasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, thepublisher will be pleased to make amends at the earliest possible opportunity.
University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University ofCambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.
UCLES 2010 9706/13/O/N/10
29 The diagram shows a break-even chart.
Y
X
number of units
$
0
What is indicated by the line XY?
A total costs
B total fixed costs
C total sales
D total variable costs
30 On 1 January 2009 a business had prepaid rent of $50. During 2009, three rent payments weremade of $250 each. On 31 December 2009, the business still owes $200 rent on account for2009.
The business owner has charged the rent payments made during 2009 in his income (profit andloss) account.
What is the effect on net profit?
A $200 too high
B $200 too low
C $250 too high
D $250 too low
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
38/145
This document consists of 13 printed pages and 3 blank pages.
DC (AC/CGW) 22297/6
UCLES 2010 [Turn over
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONSGeneral Certificate of EducationAdvanced Subsidiary Level and Advanced Level
*
3
9
0
6
6
2
06
6
6
*
ACCOUNTING 9706/21
Paper 2 Structured Questions October/November 2010
1 hour 30 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.Write in dark blue or black pen.You may use a soft pencil for rough working.Do not use staples, paper clips, highlighters, glue or correction fluid.DO NOT WRITE IN ANY BARCODES.
Answer all questions.All accounting statements are to be presented in good style.Workings must be shown.You may use a calculator.
At the end of the examination, fasten all your work securely together.The number of marks is given in brackets [ ] at the end of each question or part question.
For Examiners Use
1
2
3
Total
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
39/145
2
9706/21/O/N/10 UCLES 2010
For
Examiners
Use
1 On 1 January 2009 Clara Coyle, a sole trader, had the following balances:
$Inventory (stock) 24 170Premises 60 000Fittings and fixtures (net book value) 28 000
Cash and cash equivalents (bank) 4 000Rates prepaid 440Trade receivables (debtors) 3 810Trade payables (creditors) 3 420Capital 117 000
There was no opening cash or cash equivalent.
Full accounting records were not kept, but the following information was available for theyear ended 31 December 2009.
Bank Account Receipts $
Loan from uncle (interest free) 10 000Receipts from trade receivables (debtors) 163 100Cash sales paid into bank 34 000
Bank Account PaymentsPayments to trade payables (creditors) 141 508Ordinary goods purchased (purchases) by cheque 6 300Rates 2 600Drawings 3 650General expenses 4 410Wages 21 300
Cash payments from cash sales
General expenses 2 680Purchases 1 200
Balances as at 31 December 2009Trade receivables (debtors) 4 100Trade payables (creditors) 11 850Rates prepaid 240General expenses owing 400Wages owing 1 620Cash and cash equivalents (cash) 515Bank ?
Additional Information:
1 The selling price on all goods is based on cost plus 25%.
2 During the year Clara Coyle withdrew goods, costing $140, from the business, forher own use.
3 The business allowed discounts, $1 300, to its trade receivables (debtors).
4 The business received discounts, $1 600, from its trade payables (creditors).
5 No additions or disposals of non-current (fixed) assets took place during the year.
Depreciation of $3 000 is to be provided on fixtures and fittings.
Premises are not depreciated.
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
40/145
3
9706/21/O/N/10 UCLES 2010 [Turn over
For
Examiners
Use
REQUIRED
(a) Calculate the total sales for the year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
......................................................................................................................................[5]
(b) Calculate the total purchases for the year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
......................................................................................................................................[5]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
41/145
4
9706/21/O/N/10 UCLES 2010
For
Examiners
Use
(c) Prepare the Income Statement (trading and profit and loss account) for Clara Coyle forthe year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..................................................................................................................................... [8]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
42/145
-
7/27/2019 A Level Accounting Papers Nov2010
43/145
6
9706/21/O/N/10 UCLES 2010
For
Examiners
Use
2 The following information is given about the Schubert Music Club.
Schubert Music ClubBalance Sheet at 31 December 2008
Cost Depreciation Net Book Value
Non-current (Fixed) Assets $ $ $Clubhouse 50 000 10 000 40 000Instruments 06 000 05 000 01 000
56 000 15 000 41 000Current Assets
Inventory (stock) of cafe supplies 4 000Subscriptions in arrears 400Cash and cash equivalents (bank) 2 100
6 500Current Liabilities
Trade payables (creditors) for cafe supplies 3 000Cafe expenses owing 1 200Subscriptions in advance 0 300
4 500 02 00043 000
Accumulated fund 41 000Life subscriptions 02 000
43 000
Schubert Music ClubReceipts and Payments Account for the year ended 31 December 2009
$ $Balance b/d 2 100 Suppliers for cafe 8 400Subscriptions 2008 300 Cafe expenses 4 200Subscriptions 2009 2 200 Wages cafe staff 5 000Life subscriptions 4 000 Clubhouse repairs 6 000Cafe takings 18 500 Sundries 2 500
Balance c/d 01 00027 100 27 100
Additional information at 31 December 2009
1 Inventory (stock) for the cafe was $2 000.
2 Suppliers for cafe purchases were owed $2 200.
3 Cafe expenses of $50 were owing.
4 Depreciation is to be charged on a straight line basis:Clubhouse: 4% on cost per annumInstruments: $1 000 per annum
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
44/145
7
9706/21/O/N/10 UCLES 2010 [Turn over
For
Examiners
Use
5 Life subscriptions are available under a scheme which started 8 years ago. Thecost remains at the original $500 per person. At 31 December 2008 there were sixmembers with life subscriptions.
The life subscriptions are brought into income over 20 years commencing from theyear in which payment of life subscription takes place.
6 The ordinary subscription rate for 2009 was $100 per person. This is to be increasedby 50% in 2010.
No subscriptions are prepaid for 2010.
$300 remained owing from 2009 but these are expected to be received duringJanuary 2010.
Subscriptions owing at 31 December 2008, which were not received during 2009,are to be written off as bad debts.
REQUIRED
(a) Prepare a Subscriptions Account for ordinary members for the year ended31 December 2009 (a life subscriptions account is not required).
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
......................................................................................................................................[7]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
45/145
8
9706/21/O/N/10 UCLES 2010
For
Examiners
Use
(b) Prepare a Cafe Trading Account for the year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..................................................................................................................................... [8]
(c) Prepare an Income and Expenditure Account for the year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
46/145
9
9706/21/O/N/10 UCLES 2010 [Turn over
For
Examiners
Use
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..................................................................................................................................... [9]
The treasurer had suggested increasing cafe prices and the rate of lifetime subscriptionsbut the club committee refused to do this.
Instead, the committee decided to raise the ordinary subscriptions by 50%.
REQUIRED
(d) Suggest three additional ways in which the club could try to minimise or eliminate thedeficit in future years.
1 .......................................................................................................................................
..........................................................................................................................................
2 .......................................................................................................................................
..........................................................................................................................................
3 .......................................................................................................................................
..................................................................................................................................... [6]
[Total: 30]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
47/145
10
9706/21/O/N/10 UCLES 2010
For
Examiners
Use
3 Debussy currently produces one product for which the following information is available:
Product D946 $ per unit
Selling price 6.00Direct materials 2.50
Direct labour 1.40Variable overheads 1.10
Total fixed costs $120 000 per annumSales per annum (units) $200 000
REQUIRED
(a) Using the data for the current product D946 calculate the following:
(i) break even point in units and sales value;
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
............................................................................................................................. [6]
(ii) profit for the year, showing the contribution per unit;
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
............................................................................................................................. [4]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
48/145
11
9706/21/O/N/10 UCLES 2010 [Turn over
For
Examiners
Use
(iii) margin of safety in units and as a percentage of sales.
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
............................................................................................................................. [4]
(b) Prepare the contribution to sales (profit/volume) graph, using the chart below, for thecurrent product D946. Clearly show the profit at the current sales level.
$000
000 units
[4]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
49/145
12
9706/21/O/N/10 UCLES 2010
For
Examiners
Use
Debussy is considering extending its product range with two additional products.
The fixed costs would double to $240 000 if any new product was introduced and wouldapply regardless of the number of new products introduced.
Product D947 Product D948
$ per unit $ per unitSelling price 9.00 13.00Direct materials 6.60 7.00Direct labour 2.40 2.10Variable overheads 1.50 0.90
Sales per annum (units) 50 000 30 000
The demand for each product is estimated to be fixed at the levels stated, regardless ofwhether one or two additional products are introduced.
The existing workforce is currently operating at full capacity in the production of productD946.
REQUIRED
(c) Debussy decides to extend the product range with both additional products.
Calculate the maximum profit Debussy could achieve in the next full year, if it were toproduce products D946, D947 and D948.
Show clearly the total contribution per product.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
................................................................................................................................... [10]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
50/145
13
9706/21/O/N/10 UCLES 2010
For
Examiners
Use
(d) Based on your calculations advise Debussy whether or not to go ahead and produce allthree products. Give reasons for your advice.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..................................................................................................................................... [2]
[Total: 30]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
51/145
14
9706/21/O/N/10 UCLES 2010
BLANK PAGE
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
52/145
15
9706/21/O/N/10 UCLES 2010
BLANK PAGE
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
53/145
16
9706/21/O/N/10 UCLES 2010
Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Everyreasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.
University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of
Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.
BLANK PAGE
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
54/145
This document consists of 13 printed pages and 3 blank pages.
DC (SJF/CGW) 35573
UCLES 2010 [Turn over
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONSGeneral Certificate of EducationAdvanced Subsidiary Level and Advanced Level
*
8
2
8
7
4
3
63
9
5
*
ACCOUNTING 9706/22
Paper 2 Structured Questions October/November 2010
1 hour 30 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.Write in dark blue or black pen.You may use a soft pencil for rough working.Do not use staples, paper clips, highlighters, glue or correction fluid.DO NOT WRITE IN ANY BARCODES.
Answer all questions.All accounting statements are to be presented in good style.Workings must be shown.You may use a calculator.
At the end of the examination, fasten all your work securely together.The number of marks is given in brackets [ ] at the end of each question or part question.
For Examiners Use
1
2
3
Total
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
55/145
2
9706/22/O/N/10 UCLES 2010
For
Examiners
Use
1 On 1 January 2009 Clara Coyle, a sole trader, had the following balances:
$Inventory (stock) 24 170Premises 60 000Fittings and fixtures (net book value) 28 000
Cash and cash equivalents (bank) 4 000Rates prepaid 440Trade receivables (debtors) 3 810Trade payables (creditors) 3 420Capital 117 000
There was no opening cash or cash equivalent.
Full accounting records were not kept, but the following information was available for theyear ended 31 December 2009.
Bank Account Receipts $
Loan from uncle (interest free) 10 000Receipts from trade receivables (debtors) 163 100Cash sales paid into bank 34 000
Bank Account PaymentsPayments to trade payables (creditors) 141 508Ordinary goods purchased (purchases) by cheque 6 300Rates 2 600Drawings 3 650General expenses 4 410Wages 21 300
Cash payments from cash sales
General expenses 2 680Purchases 1 200
Balances as at 31 December 2009Trade receivables (debtors) 4 100Trade payables (creditors) 11 850Rates prepaid 240General expenses owing 400Wages owing 1 620Cash and cash equivalents (cash) 515Bank ?
Additional Information:
1 The selling price on all goods is based on cost plus 25%.
2 During the year Clara Coyle withdrew goods, costing $140, from the business, forher own use.
3 The business allowed discounts, $1 300, to its trade receivables (debtors).
4 The business received discounts, $1 600, from its trade payables (creditors).
5 No additions or disposals of non-current (fixed) assets took place during the year.
Depreciation of $3 000 is to be provided on fixtures and fittings.
Premises are not depreciated.
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
56/145
3
9706/22/O/N/10 UCLES 2010 [Turn over
For
Examiners
Use
REQUIRED
(a) Calculate the total sales for the year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
......................................................................................................................................[5]
(b) Calculate the total purchases for the year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
......................................................................................................................................[5]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
57/145
4
9706/22/O/N/10 UCLES 2010
For
Examiners
Use
(c) Prepare the Income Statement (trading and profit and loss account) for Clara Coyle forthe year ended 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..................................................................................................................................... [8]
www.sheir.org
-
7/27/2019 A Level Accounting Papers Nov2010
58/145
5
9706/22/O/N/10 UCLES 2010 [Turn over
For
Examiners
Use
(d) Prepare the Balance Sheet for Clara Coyle at 31 December 2009.
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
......................................................................................................................................
