Accounting 9706/01 Oct Nov 2004 | Cambridge AS Level Past Papers With Mark Scheme

1. Revenue and capital items in accounts: Identification of items debited to purchases ledger accounts, calculation of rental income based on accruals and prepayments, and classification of expenditures as capital or revenue.
2. Provisions and bad debts: Calculation of doubtful debts expense, accounting concepts applied in bad debt write-off, and treatment of machinery under hire purchase in financial statements.
3. Stock valuation and profit impacts: Effects of changing stock valuation methods from LIFO to FIFO on gross and net profits, valuation of stock for goods on sale or return, and adjustment of partnership capital upon new partner admission.
4. Cash flow and financial position adjustments: Correction of suspense account errors, calculation of cash at bank balance, and understanding effects on gross profit and partnership profit distribution.
5. Share capital and dividend adjustments: Calculation of bonus share issues, impact of rights issues on cash funds, and adjustments to partnership capital due to goodwill and new partner arrangements.
6. Costing and profit analysis: Determination of contribution per unit with increased variable costs, profit differences under absorption and marginal costing, calculation of total fixed costs from break-even data, and identification of direct expenses in production processes.