Accounting 9706/02 Oct Nov 2008 | Cambridge AS Level Past Papers With Mark Scheme

1. Partnership net profit and capital adjustments: Calculation of total net profit for three years, preparation of Michael’s capital and current accounts, and reasons for maintaining both types of accounts in partnerships.
2. Projected financial statements for new business: Calculation of receipts from debtors, total credit purchases, payments to creditors, preparation of projected trading and profit and loss account, and projected balance sheet for Lee Quinn's new business.
3. Profit ratio analysis for sole trader: Reasons for the decrease in the net profit to sales ratio despite an increase in net profit, considering various operational and financial factors.
4. Break-even analysis for manufacturing business: Calculation of break-even point in units and dollars, based on selling price, direct costs, and fixed manufacturing overheads for Ken’s business.
5. Profit calculation using costing methods: Determination of profit or loss using marginal costing, absorption costing, and reconciliation of profits between these methods for different accounting periods.
6. Inventory and sales impact on profitability: Analysis of stock movements, sales data, and its impact on profitability in Ken’s business, considering the absorption of manufacturing overheads and the transfer of variances to profit and loss.