Accounting 9706/23 May June 2010 | Cambridge AS Level Past Papers With Mark Scheme

1. Income statement and balance sheet preparation for Jasper, reflecting sales, purchases, and closing inventory adjustments.
2. Reconciliation of trade receivables through Harvey Rabbit’s sales ledger control account, incorporating sales returns, discounts, bad debts, and contra entries.
3. Statement adjustments for sales ledger control account to align with sales ledger balances, addressing posting errors and omissions.
4. Cost analysis for Garth Vader's cabinet options, calculating break-even points for manufacturing alternatives and their profit or loss at varying sales levels.
5. Determination of minimum production level for manufacturing cabinets to achieve cost-effectiveness over purchasing.
6. Break-even assumptions, including fixed cost invariance, linear cost and revenue behavior, and consistent sales mix for decision reliability.
7. Profit comparison for cabinets based on varying cost structures and selling prices to support strategic selection.
8. Advantages of maintaining control accounts, such as error detection, ledger summary, and management of large data sets efficiently.
9. Use of markup percentages to determine sales revenue from cost of goods sold, ensuring accurate revenue recognition.
10. Financial impact of sales ledger errors on control accounts, emphasizing the importance of accuracy in day-to-day accounting practices.