Accounting 9706/04 Oct Nov 2002 | Cambridge AS Level Past Papers With Mark Scheme

1. Share redemption and equity issuance: Preparation of Istaimy plc’s balance sheet post-redemption of 10% preference shares, issuance of additional ordinary shares, and calculation of impact on share premium and profit and loss accounts.
2. Business acquisition journal entries: Recording of Istaimy plc’s acquisition of Erchetai partnership, adjustments for depreciation, machinery payments, debtor bankruptcy, and stock valuation, including issuance of debenture stock and shares as consideration.
3. Budgeted financial statements: Preparation of Prophile plc’s budgeted balance sheet, detailing tangible fixed assets, equity, and liabilities based on budgeted profit and loss account and cash flow statement for the year ending 31 October 2003.
4. Process costing and unit cost calculation: Preparation of process accounts for Pressco plc’s Processes 1 and 2, calculation of unit costs, and evaluation of cost distribution for joint products X and Y produced in Process 3.
5. Production output and spoilage analysis: Calculation of quantities of joint products X and Y, assessment of production spoilage, and determination of cost per unit and value of finished stock for Process 3.
6. By-product accounting and process cost treatment: Explanation of by-products in process cost accounting, methods for accounting for by-products, and their impact on overall process costing and profitability.