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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
9706/02
For Examination from 2010
1 hour 30 minutes
MAXIMUM MARK: 90
UCLES 2010
[Turn over
2
1
(a)
Revenue (Sales)
Less returns
Less cost of sales
Inventory at 1 May 2009
Ordinary good purchased (Purchases)
Less returns
Add carriage in
13 500
184 000
1 980
182 020
350
$
243 000
2 040
240 960
(2100 40)
(9340 + 50)
((52000 15600) 40%)
((11% 60000)/2)
(1)
182 370
195 870
15 100
200
800
1 800
2 060
9 390
14 560
3 300
(1)
180 770
60 190
1 300
2 640
236
64 366
32 110
32 256
(1)
(1)
(1)
(1)
(1)
(1)
[8]
UCLES 2010
9706/02/SM/2
3
(b)
$
Net Book Value
250 000
21 840
(1)of if < 36 400
271 840
15 100
8 800
264
Current Liabilities
Trade payables (Creditors)
Bank
Accrual
Interest due
Net current assets
8 536
40
220
990
11 460
8 260
50
3 300
24 886
23 070
1 816
273 656
Non-current Liabilities
Long-term loan (11%)
(1)
(1)
(1)
(1)of
60 000
213 656
Equity
Capital at 1 May 2007
Add profit for the year
200 000
32 256
232 256
18 600
213 656
Less drawings
(1)of
(1)
(1)
[11]
1.08:1
(1)of
0.42:1
(1)of
12.64 times
(1)of
24.98%
(1)of
13.39%
(1)of
(iv) and (v) denominator must be net sales i.e. not 243 000
UCLES 2010
9706/02/SM/2
[5]
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4
(d) (i) Ratios are used to compare a firm's performance with another year, or with another
business of the same type.
(ii) Interested parties might be:
Bank manager
Directors
Competitors
Customs and excise
Creditors
Investors/Shareholders
Employees
Debtors
NOT Stakeholders
The media (Newspapers, TV etc)
Allow ONE group only of members of the firm
Etc.
One mark each to a maximum of
[2]
[4]
[Total: 30]
(a)
Payments
Discounts
Balance c/d
[7]
Balance b/d
Late banked
last year
Sales
(b)
Opening inventory
add Purchases
less Closing inventory
Cost of Sales
$21 500
$48 000
$69 500
$18 500
$51 000
(1)
(OF 1)
(1)
(OF 1)
[4]
(c) (i)
(ii)
(1)
(1)
(1)
14 000 365 48 000 = 106.45 106 days (accept 107 days)
[3]
(1)
(1)
(1)
13 600 365 60 750 = 81.71 82 days (accept 81 days)
[3]
[Total: 30]
UCLES 2010
9706/02/SM/2
5
3
[3]
(b)
Sales
Less costs:
Direct Materials
Direct labour
Variable
Overhead
Fixed Costs
TOTAL COSTS
Profit (Loss)
Kitchen
$
240 000
(1)
Floor
$
136 500
(1)
Bathroom
$
165 000
81 000
45 000
54 000
(1)
(1)
(1)
22 500
202 500
37 500
(1)
TOTAL
$
541 500
[3]
76 050
29 250
70 200
(1)
(1)
(1)
49 500
33 000
16 500
(1)
(1)
(1)
206 550
107 250
140 700
[3]
[3]
[3]
(1)
14 625
190 125
(1)
16 500
115 500
(1)
53 625
508 125
[3]
(1)
(53 625)
(1)
49 500
(1)
33 375
[3]
240 000
(180 000)
60 000
(1)
(1)
(c) (i)
Sales
Less variable costs
Contribution
136 500
(175 500)
(39 000)
(1)
(1)
165 000
(99 000)
66 000
(1)
(1)
87 000
[6]
(ii)
Contribution
Direct labour hours
Contribution per DL hour
60 000
15 000
$4
(1)
(39 000)
9 750
($4)
(1)
66 000
11 000
$6
(1)
[3]
[Total: 30]
UCLES 2010
9706/02/SM/2
6
BLANK PAGE
UCLES 2010
9706/02/SM/2