Accounting 9706/12 May June 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Accounting concepts and transactions: Application of business entity concept, capital introduction, accounting equation examples, and impact of vehicle exchange on cash outflow.
2. Depreciation and asset transactions: Calculation of profit or loss on asset disposal, identifying expenditure on new assets, and adjusting for depreciation errors in financial statements.
3. Error corrections and control accounts: Use of suspense accounts for error rectification, identification of errors in control accounts, and adjustments affecting net current liabilities.
4. Partnership changes and goodwill: Effects of partner retirement on capital accounts, valuation of goodwill, interest on capital entries in appropriation accounts, and treatment of goodwill as an intangible asset.
5. Financial performance and equity transactions: Calculation of return on capital employed, changes in equity due to bonus and rights issues, impact of ordinary share dividends on equity, and determination of average collection period.
6. Costing and break-even analysis: Identification of stepped costs, application of AVCO in inventory valuation, calculation of labour costs in production, analysis of variable costs, and determination of margin of safety in budgeted income statements.