Accounting 9706/21 Oct Nov 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial records for sole traders: Benefits of maintaining full accounting records, accounting treatments for prepayments and accruals, and calculation of inventory loss due to theft.
2. Bank account reconciliation: Preparation of bank account including adjustments for unpresented cheques and uncredited bankings, and calculation of total expenses for income statement.
3. Liquidity analysis and supplier credit: Discussion of liquidity position using current and acid test ratios, and advice to a potential supplier about granting credit.
4. Depreciation of non-current assets: Explanation of prudence and accruals concepts in asset accounting, provision for depreciation account preparation, and impact of deferred payment for new machinery on financial statements.
5. Partnership revaluation and capital adjustments: Calculation of revaluation profit/loss, preparation of capital account for retiring partner, and funding options for asset purchases in partnerships.
6. Costing and break-even analysis: Calculation of break-even point, contribution, and profit; impact of price reduction on profit; and considerations for changing suppliers amidst potential material shortages.