Accounting 9706/04 Oct Nov 2008 | Cambridge AS Level Past Papers With Mark Scheme

1. Business merger and realization accounts: Preparation of realization account, bank account, and capital account to close Wong’s books and Gruber and Gupta’s partnership books for the merger into GWG Ltd.
2. Asset valuation and depreciation: Adjustments for revaluation of freehold land and buildings, calculation of accumulated depreciation, and impact of asset disposals on Khan plc’s balance sheet.
3. Financial statement and cash flow analysis: Calculation of trading profit before interest and tax, preparation of cash flow statement for Khan plc, and discussion on the importance of cash flow statements in financial management.
4. Variance analysis for production costs: Calculation of material price and usage variances, labour rate and efficiency variances, total materials and labour variances, and interpretation of variance connections in Namllih Ltd.
5. Investment appraisal and machine selection: Calculation of net present value (NPV) for machine A, comparison of machines A and B based on cost and output, and recommendation based on financial analysis and internal rate of return (IRR) calculations for Namllih Ltd.
6. Financial planning and budgeting: Assessment of production costs, evaluation of potential demand fluctuations, and strategic investment in machinery to optimize cost and increase profitability in Namllih Ltd.