Accounting 9706/22 May June 2012 | Cambridge AS Level Past Papers With Mark Scheme

1. Manufacturing account preparation, including raw materials, work-in-progress, and finished goods inventories with depreciation applied using the reducing balance method.

2. Income statement preparation for sole traders, incorporating unpaid wages, insurance prepayments, and provision for doubtful debts adjustments.

3. Partnership formation benefits, such as capital injection, shared responsibilities, risk diversification, and expanded business opportunities.

4. Goodwill valuation based on average net profit over prior years, excluding goodwill from balance sheet post-partnership formation.

5. Overhead allocation and absorption rate calculations for production departments using machine hours, labor hours, and power usage data.

6. Evaluation of over- or under-absorbed overheads, analyzing actual versus budgeted costs and suggesting improvements for predetermined absorption rates in pricing.