Accounting 9706/21 Oct Nov 2016 | Cambridge AS Level Past Papers With Mark Scheme

1. Preparation of partners' capital accounts reflecting partnership changes, including new member contributions, loan account transfer, and goodwill valuation adjustments.

2. Calculation and reconciliation of partners' current accounts, incorporating interest on capital, interest on drawings, salary allocation, and residual profit distribution.

3. Liquidity ratio analysis and suggestions for improving partnership liquidity based on financial indicators like liquid ratio and trade receivables turnover.

4. Preparation of updated sales ledger control account and reconciliation statement, identifying common errors affecting account balances.

5. Analysis of manufacturing cost structures, including break-even calculations, margin of safety, and contribution-based selling price adjustments for a new contract.

6. Evaluation of AVCO inventory valuation method, detailing its advantages and a disadvantage for business inventory management.