Accounting 9706/21 May June 2010 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statement preparation and adjustments: Income statement and balance sheet for Mighty Wholesale Company, adjustments for inventory valuation, depreciation, and accruals.
2. Ratio analysis and financial performance: Calculation of gross profit ratio, net profit ratio, return on capital employed, and comparison of financial ratios between Chikkadea and Dakeeri for performance assessment.
3. Costing methods and income statement preparation: Detailed forecast income statement using marginal costing and absorption costing, calculation of unit costs, and reconciliation of profit between the two methods.
4. Inventory valuation and profit calculation: Adjustments for inventory with net realizable value, correction of errors in asset disposals, and implications for depreciation and loan interest accruals.
5. Partnership changes and capital account adjustments: Distribution of profits, calculation of goodwill adjustments, and impact on partner capital accounts during admission and retirement.
6. Budgeting and variance analysis: Use of flexible budgeting, analysis of variances in labour and materials, calculation of break-even point, and implications for production planning and cost management.