Accounting 9706/23 Oct Nov 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Share issuance and financial statement preparation: Recording share issue transactions, calculating share capital and premium, and preparation of the statement of changes in equity for F Limited.
2. Financing options and capital structure: Comparison between raising finance through debentures versus a rights issue, including implications on the company’s capital structure and financial obligations.
3. Capital and revenue expenditure: Definitions of revenue expenditure, classification of capital expenditure related to factory extension, and impact on financial statements.
4. Incomplete records and income statement preparation: Calculation of profit for Rowsell using available data, adjustments for depreciation, rent, and telephone charges, and importance of maintaining full double entry accounting records.
5. Partnership changes and asset revaluation: Calculation of amounts due to Thierry upon retirement, preparation of revaluation account, and journal entries for goodwill adjustments in partnership accounting.
6. Product profitability and resource constraints: Calculation of maximum budgeted profit under direct material constraints, impact of minimum production requirements on profitability, and analysis of the margin of safety's role in financial decision-making.