Accounting 9706/04 May June 2005 | Cambridge AS Level Past Papers With Mark Scheme

1. Profit and Loss Account preparation: Detailed preparation of Clutterbuck Ltd’s Profit and Loss Account, starting with operating profit and including taxation liabilities and retained profits.
2. Cash flow statement and capital expenditure: Reconciliation of operating profit to net cash flow, preparation of capital expenditure section, and analysis of cash flow impact from fixed asset transactions.
3. Equity financing and redemption: Calculation of proceeds from a new ordinary share issue, redemption of debentures and preference shares, and impact on balance sheet structure post-transactions.
4. Cash budget preparation and financial planning: Creation of Sperrabuck Ltd’s cash budget, incorporating sales, wages, expenses, and fixed asset purchases, and preparation of current assets and liabilities section in the budgeted balance sheet.
5. Material usage and production planning: Calculation of contribution per kilo of material X for products, preparation of production budget maximizing profit from limited materials, and variance analysis for materials, labour, and sales.
6. Profit reconciliation and variance analysis: Reconciliation of expected profit with budgeted profit using calculated variances, evaluation of production efficiency, and adjustments for variances in direct costs and sales volume.