Accounting 9706/22 March 2019 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statement preparation: Income statement for K Limited including cost of sales, administrative expenses, distribution costs, and debenture interest. Adjustments for prepayments, carriage inwards, and depreciation.
2. Changes in equity and finance options: Preparation of the statement of changes in equity, analysis of raising finance through rights issues versus debentures, and the impact of these options on the company's financial position.
3. Liquidity ratios and turnover analysis: Effect of trade payables and receivables turnover changes on liquidity, strategies to reduce trade receivables turnover, and drawbacks of increasing trade payables turnover.
4. Partnership dissolution and realization account: Reasons for partnership dissolution, preparation of realization account, partner capital accounts, and the final bank account reflecting the partnership closure.
5. Expense and income adjustments: Calculation of general expenses, insurance, rent receivable, and closing inventory for Noor's business, along with adjustments for provision for doubtful debts.
6. Marginal costing and decision analysis: Budgeted contribution and profit calculation for products, impact of machinery rental options on profitability, decision-making based on financial and non-financial factors, and application of unit contribution in material shortages.