Accounting 9706/04 Oct Nov 2007 | Cambridge AS Level Past Papers With Mark Scheme

1. Partnership changes and capital adjustments: Calculation of capital accounts for Ben, Josie, and Melvyn post-admission and restructuring, valuation of assets including goodwill, and adjustments to reflect new profit-sharing ratios.
2. Suspense account correction and financial statement preparation: Identification of errors in O’Really Ltd’s draft balance sheet, adjustments for goodwill, stock valuation, revaluation of premises, provision for doubtful debts, and preparation of an updated balance sheet.
3. Preference share redemption and new issue: Calculation of redemption premium, impact on share capital and reserves, and preparation of balance sheet post-preference share redemption and new ordinary share issue.
4. Process costing and unit cost calculation: Preparation of accounts for processes 1 and 2, calculation of cost per unit for completed production, and determination of process 3 costs including waste material revenue.
5. Order profitability and cost analysis: Calculation of profit margin for Thomson Ltd’s order, inclusion of delivery charges, and evaluation of profitability based on production and cost data from processes.
6. Cost management and production efficiency: Analysis of direct labour, material costs, and overheads across three processes, assessment of normal loss, and cost control strategies for efficient production.