Accounting 9706/04 Oct Nov 2005 | Cambridge AS Level Past Papers With Mark Scheme

1. Balance sheet preparation post-acquisition: Calculation of Harmonica Ltd’s balance sheet after acquiring Suck and Blow's partnership, including valuation adjustments and the issuance of debentures, cash, and shares.
2. Profit and loss account for continuing, acquisition, and discontinued operations: Preparation of Harmonica Ltd’s profit and loss account, showing operating profits and losses from various operations and calculating profit before taxation.
3. Capital reduction and asset revaluation: Statement of facts for Kalamitty Ltd's capital reduction proposal, including the write-down of goodwill, premises, and stock, and the impact on financial health and dividend capacity.
4. Cash flow and balance sheet forecast: Preparation of Kalamitty Ltd’s forecast balance sheet based on cash flow projections, including capital expenditure, equity dividends, and changes in operating cash flow components.
5. Directors' report contents: Identification of key elements in a directors' report for Kalamitty Ltd, including financial performance, future plans, risk management, and corporate governance practices, highlighting their importance for transparency and shareholder communication.
6. Process costing in manufacturing: Ledger accounts for processes 1, 2, and 3 in Laurus' manufacturing, calculation of material and labour costs, overhead allocation, and accounting for spoilage in process 3, focusing on product differentiation and cost control.