Accounting 9706/02 Oct Nov 2005 | Cambridge AS Level Past Papers With Mark Scheme

1. Trading, Profit and Loss, and Appropriation account preparation: Calculation of gross profit, net profit, and retained profit for O’Riley and Co plc, including adjustments for bad debts, depreciation, and proposed dividends.
2. Balance sheet formulation and financial health assessment: Preparation of balance sheet for O’Riley and Co plc, reflecting changes in stock, debtors, creditors, and bank balances, and ensuring accurate representation of financial position.
3. Share premium and its applications: Explanation of share premium, its recording on the balance sheet, and possible uses such as issuing bonus shares, writing off preliminary expenses, and redeeming preference shares.
4. Income and expenditure account for non-profit organizations: Preparation of Outerspace Sports and Social Club's income and expenditure account, considering depreciation, loan interest, and specific allocations for restaurant operations.
5. Costing methods and profit statement preparation: Profit statements for Gerry Hatrick Ltd using absorption and marginal costing methods, detailing differences in profit due to the treatment of fixed production overheads.
6. Break-even analysis for production planning: Calculation of break-even point in sales volume for Gerry Hatrick Ltd, including fixed and variable costs analysis, and the implications for business decision-making on production levels and pricing strategies.