Accounting 9706/21 Oct Nov 2019 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statement preparation and adjustments: Income statement and financial position for AB Limited, including adjustments for inventory, depreciation, irrecoverable debts, and provisions for doubtful debts.
2. Capital raising options and financial performance: Analysis of rights issue versus debenture issuance, including implications on financial statements and internal stakeholders' interests.
3. Bank reconciliation and profit adjustments: Cash book update, bank reconciliation statement, and revised profit calculation for Jacques after considering inventory valuation, sale or return transactions, and expense accruals.
4. Partnership changes and financial implications: Calculation of revaluation accounts, partner payouts, and implications of Bilal's retirement on the partnership, including new profit-sharing arrangements.
5. Overhead costing and pricing strategy: Absorption costing for D Limited, overhead apportionment, calculation of overhead absorption rates, and profit margin determination for brochure production.
6. Marginal costing and production decisions: Contribution analysis for D Limited's garden chairs, assessment of fixed costs, and decision-making on discontinuing less profitable models considering both financial and non-financial factors.