Accounting 9706/22 March 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Control accounts and error corrections: Benefits of using control accounts, adjustments for book-keeping errors, and preparation of amended sales ledger control account and purchases ledger control account.
2. Statement of financial position and financial ratios: Preparation of statement of financial position, calculation of depreciation using reducing balance method, and analysis of gross margin and profit margin to assess business profitability.
3. Equity transactions and partnership changes: Journal entries for share issues and bonus issues, calculation of impact on total equity, advantages and disadvantages of admitting a new partner, and adjustments for goodwill and revaluation.
4. Cost allocation and inventory valuation: Splitting maintenance costs based on stores requisitions, charging direct materials to production departments, and calculation of inventory value using marginal and absorption costing.
5. Production cost analysis and profit calculation: Budgeted production costs, calculation of budgeted profit per unit for bicycles and scooters, and assessment of changes in production mix based on financial and non-financial factors.
6. Overhead absorption and variance analysis: Calculation of overhead absorption rate per direct labour hour, identification of under-absorption or over-absorption of overheads, and implications for departmental cost management.