Accounting 9706/13 May June 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Inventory valuation and prudence concept: Valuation at lower of cost and net realizable value, impact of prudence on inventory valuation, and adjustments for inventory movements.
2. Depreciation and asset disposal: Purpose of spreading cost over asset's useful life, calculation of disposal proceeds, and identifying capitalizable costs for land and buildings.
3. Control accounts and error corrections: Identification of unpresented cheques, recording changes in doubtful debts provisions, and rectifying errors that necessitate a suspense account.
4. Partnership and profit-sharing adjustments: Effects of goodwill adjustments on partner capital accounts, settlement calculations on partner retirement, and distribution of profits in new profit-sharing arrangements.
5. Company financing and equity changes: Impact of rights and bonus issues on equity, calculation of total equity post-transactions, and effects of debenture issuance on net current assets and short-term profits.
6. Costing methods and profitability analysis: Calculation of overhead absorption rate, determination of units sold for profit calculation, implications of margin of safety, and comparison of contribution per unit of limiting factors for production planning.