Accounting 9706/04 Oct Nov 2006 | Cambridge AS Level Past Papers With Mark Scheme

1. Capital reconstruction and financial adjustments: Reduction of Knotsogood Ltd's share capital, write-off of goodwill, debt write-off, asset sale proceeds, and preparation of post-reconstruction balance sheet.
2. Variance analysis in manufacturing: Calculation of total direct material variance, usage and price variances, and direct labour variances in both machining and finishing departments for Draxian Industries Ltd.
3. Profit and loss account preparation and dividend provisions: Trading, profit and loss, and appropriation account for Hamilton Ltd, including provisions for taxation and dividends.
4. Financial ratios and performance comparison: Calculation of interest cover, earnings per share (EPS), price earnings ratio (P/E), dividend yield, and dividend cover for Hamilton Ltd over two years, and commentary on changes.
5. Share capital and reserves adjustments: Impact of revaluation of premises, redemption of preference shares at a premium, and bonus issue of shares on Hamilton Ltd's share capital and reserves section of the balance sheet.
6. Standard costing and budgetary control: Reasons for variances in material usage, price, labour efficiency, and rate in Draxian Industries Ltd, and discussion on possible links between variances, and the rationale for implementing standard costing in businesses.