Accounting 9706/21 Oct Nov 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Inventory valuation and financial adjustments: Calculation of inventory value for financial statements, preparation of income statement, and benefits and limitations of sales ledger control accounts.
2. Depreciation of motor vehicles: Double entry for non-current asset disposal, provision for depreciation account, and impact of transactions on profit.
3. Share capital transactions: Differences between ordinary and cumulative preference shares, rights vs. bonus issue, and response to shareholder demand for dividends.
4. Batch costing in manufacturing: Explanation of batch costing, re-apportionment of service department costs, calculation of overhead absorption rates, and total cost per unit for production.
5. Quotation for customer order: Calculation of selling price with profit margin, advice on offering a discount, and break-even analysis for a factory producing cases.
6. Decision on factory closure: Break-even point calculation, and advice on factory closure considering both financial and non-financial factors.