Accounting 9706/01 May June 2002 | Cambridge AS Level Past Papers With Mark Scheme

1. Accounting equation and capital employed: Understanding the composition of capital employed, including fixed assets, current assets, and liabilities, and its representation in financial statements.
2. Revenue and capital expenditure: Differentiation between revenue and capital expenditures, impact of repairs, construction costs, and legal fees on financial reporting.
3. Bank reconciliation and adjustments: Calculation of adjusted bank statement balance, consideration of unpresented cheques, and bank charges in reconciling cash book and bank statement balances.
4. Provision for doubtful debts: Impact of changes in provision on net profit and current assets, and correct presentation in final accounts.
5. Depreciation and revaluation: Non-depreciable assets, accounting for revaluation of assets, and treatment of revaluation surplus in financial statements.
6. Dividends and appropriation account: Recording dividends in Profit and Loss Appropriation Account and balance sheet, and calculation of dividends for financial reporting.
7. Share premium and legal usage: Permissible uses of Share Premium account, including writing off preliminary expenses and legal requirements for rights and bonus issues.
8. Production planning and limiting factors: Identification of limiting factors in production, prioritization of products based on contribution, and determination of production levels to meet sales and stock targets.
9. Costing and absorption rates: Basis for calculating Overhead Absorption Rate (OAR), under-absorption of fixed overhead due to budget variances, and calculation of gross profit per unit.