Accounting 9706/12 Oct Nov 2009 | Cambridge AS Level Past Papers With Mark Scheme

1. Revenue recognition and prepayments: Calculation of rental income and current asset or liability based on payment dates and financial year-end.
2. Provision for doubtful debts and trade debtor analysis: Adjustments for doubtful debts based on debtor balances, calculation of trade debtors after accounting for discounts, and impact on financial statements.
3. Inventory valuation and profit determination: Valuation of damaged stock using prudence concept, calculation of unrealized profit in finished goods inventory, and reconciliation of inventory records using LIFO method.
4. Partnership profit sharing and capital adjustments: Calculation of net profit before appropriations in partnership, adjustments for interest on capital, and distribution of profits based on agreed ratios.
5. Equity and capital transactions: Recording of rights and bonus issues, impact on share premium and ordinary share capital, and analysis of dividends and retained earnings in company balance sheets.
6. Costing methods and break-even analysis: Calculation of prime cost of production, determination of break-even level using fixed and variable costs, and comparison of profits under marginal and absorption costing.