9706_m25_in_32

Cambridge International AS & A Level ACCOUNTING 9706/32 Paper 3 Financial Accounting February/March 2025 INSERT 1 hour 30 minutes * 7 2 4 0 9 8 8 9 9 0 - I * INFORMATION ● This insert contains all of the sources referred to in the questions. ● You may annotate this insert and use the blank spaces for planning. Do not write your answers on the insert. This document has 8 pages. Any blank pages are indicated. DC (WW) 340729/3 © UCLES 2025 [Turn over

Cambridge International AS & A Level ACCOUNTING 9706/32 Paper 3 Financial Accounting February/March 2025 INSERT 1 hour 30 minutes * 7 2 4 0 9 8 8 9 9 0 - I * INFORMATION ● This insert contains all of the sources referred to in the questions. ● You may annotate this insert and use the blank spaces for planning. Do not write your answers on the insert. This document has 8 pages. Any blank pages are indicated. DC (WW) 340729/3 © UCLES 2025 [Turn over

2 Source A for Question 1 The statements of financial position of CF Limited were as follows: At 31 December At 31 December 2024 2023 $ $ Non-current assets Office premises 418 000 320 000 Office equipment 214 000 235 000 Motor vehicles 116 000 – 748 000 555 000 Current assets Inventories 88 000 54 000 Trade receivables 143 000 153 000 Cash at bank – 4 800 231 000 211 800 Total assets 979 000 766 800 Equity and liabilities Equity Ordinary share capital ($1 shares) 400 000 300 000 Share premium – 80 000 General reserve 30 000 – Revaluation reserve 120 000 – Retained earnings 207 000 245 800 757 000 625 800 Non-current liabilities 8% debenture (2030) 80 000 – Current liabilities Trade payables 104 000 81 000 Bank overdraft 38 000 – 12% debenture (2024) – 60 000 142 000 141 000 Total equity and liabilities 979 000 766 800 © UCLES 2025 9706/32/INSERT/F/M/25

2 Source A for Question 1 The statements of financial position of CF Limited were as follows: At 31 December At 31 December 2024 2023 $ $ Non-current assets Office premises 418 000 320 000 Office equipment 214 000 235 000 Motor vehicles 116 000 – 748 000 555 000 Current assets Inventories 88 000 54 000 Trade receivables 143 000 153 000 Cash at bank – 4 800 231 000 211 800 Total assets 979 000 766 800 Equity and liabilities Equity Ordinary share capital ($1 shares) 400 000 300 000 Share premium – 80 000 General reserve 30 000 – Revaluation reserve 120 000 – Retained earnings 207 000 245 800 757 000 625 800 Non-current liabilities 8% debenture (2030) 80 000 – Current liabilities Trade payables 104 000 81 000 Bank overdraft 38 000 – 12% debenture (2024) – 60 000 142 000 141 000 Total equity and liabilities 979 000 766 800 © UCLES 2025 9706/32/INSERT/F/M/25

3 The following information is available. 1 On 1 January 2024, the office premises had been revalued upwards by $120 000. 2 On 1 September 2024, an old photocopier, with a carrying value of $8400, was part exchanged for a new one with the cost of $25 000. A loss on disposal of $3500 was recorded. 3 Motor vehicles are depreciated at the rate of 20% per annum using the straight-line method. 4 Depreciation on non-current assets for the year ended 31 December 2024 had been made. A full year’s depreciation is provided in the year of acquisition and none in the year of disposal. 5 On 1 February 2024, a bonus issue of shares was made of one ordinary share for every three shares held. Reserves were maintained in their most flexible form. 6 Dividends paid during 2024: 1 March Final dividend of $0.11 per share on all shares in issue at 31 December 2023 1 August Interim dividend of $0.06 per share on all shares in issue at 31 July 2024 7 The 12% debenture (2024) of $60 000 was fully repaid on 30 June 2024. The 8% debenture (2030) of $80 000 was issued on 1 July 2024. Debenture interest was paid every six months. 8 The general reserve was created on 31 December 2024. [Turn over © UCLES 2025 9706/32/INSERT/F/M/25

3 The following information is available. 1 On 1 January 2024, the office premises had been revalued upwards by $120 000. 2 On 1 September 2024, an old photocopier, with a carrying value of $8400, was part exchanged for a new one with the cost of $25 000. A loss on disposal of $3500 was recorded. 3 Motor vehicles are depreciated at the rate of 20% per annum using the straight-line method. 4 Depreciation on non-current assets for the year ended 31 December 2024 had been made. A full year’s depreciation is provided in the year of acquisition and none in the year of disposal. 5 On 1 February 2024, a bonus issue of shares was made of one ordinary share for every three shares held. Reserves were maintained in their most flexible form. 6 Dividends paid during 2024: 1 March Final dividend of $0.11 per share on all shares in issue at 31 December 2023 1 August Interim dividend of $0.06 per share on all shares in issue at 31 July 2024 7 The 12% debenture (2024) of $60 000 was fully repaid on 30 June 2024. The 8% debenture (2030) of $80 000 was issued on 1 July 2024. Debenture interest was paid every six months. 8 The general reserve was created on 31 December 2024. © UCLES 2025 9706/32/INSERT/F/M/25 [Turn over