9706_w23_qp_23

Cambridge International AS & A Level * 2 5 4 2 2 1 3 6 5 1 * ACCOUNTING 9706/23 Paper 2 Fundamentals of Accounting October/November 2023 1 hour 45 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS ● Answer all questions. ● Use a black or dark blue pen. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. ● You may use an HB pencil for any rough working. ● You may use a calculator. ● You should present all accounting statements in good style. ● International accounting terms and formats should be used as appropriate. ● You should show your workings. INFORMATION ● The total mark for this paper is 90. ● The number of marks for each question or part question is shown in brackets [ ]. This document has 20 pages. Any blank pages are indicated. DC (DE) 321962/3 © UCLES 2023 [Turn over

Cambridge International AS & A Level * 2 5 4 2 2 1 3 6 5 1 * ACCOUNTING 9706/23 Paper 2 Fundamentals of Accounting October/November 2023 1 hour 45 minutes You must answer on the question paper. No additional materials are needed. INSTRUCTIONS ● Answer all questions. ● Use a black or dark blue pen. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. ● You may use an HB pencil for any rough working. ● You may use a calculator. ● You should present all accounting statements in good style. ● International accounting terms and formats should be used as appropriate. ● You should show your workings. INFORMATION ● The total mark for this paper is 90. ● The number of marks for each question or part question is shown in brackets [ ]. This document has 20 pages. Any blank pages are indicated. DC (DE) 321962/3 © UCLES 2023 [Turn over

2 1 B Limited provided the following information for the year ended 30 September 2023. $ 8% debenture (2025) 60 000 Administrative expenses 161 100 Allowance for irrecoverable debts at 1 October 2022 3 820 Cash and cash equivalents 4 680 Distribution costs 84 650 Dividend paid 4 000 Finance costs 3 950 Inventory 74 000 Other payables 1 860 Other receivables 940 Property plant and equipment at 1 October 2022 Cost / valuation 408 400 Accumulated depreciation 110 650 Retained earnings at 1 October 2022 45 850 Revaluation reserve at 1 October 2022 10 000 Share capital (ordinary shares of $1 each) at 1 October 2022 200 000 Share premium at 1 October 2022 14 000 Trade payables 57 150 Trade receivables 82 680 The revaluation reserve relates to land only. The gross profit for the year ended 30 September 2023 was $321 070. The following information is also available. Property plant and equipment at 1 October 2022 Cost / Accumulated Depreciation Allocation of valuation depreciation method depreciation $ $ Land 95 000 Nil – Nil Buildings 215 000 53 750 5% per annum 60% administrative straight line expenses Equipment 98 400 56 900 20% per annum 40% distribution reducing balance costs Total 408 400 110 650 There were no acquisitions or disposals of non-current assets during the year. © UCLES 2023 9706/23/O/N/23

2 1 B Limited provided the following information for the year ended 30 September 2023. $ 8% debenture (2025) 60 000 Administrative expenses 161 100 Allowance for irrecoverable debts at 1 October 2022 3 820 Cash and cash equivalents 4 680 Distribution costs 84 650 Dividend paid 4 000 Finance costs 3 950 Inventory 74 000 Other payables 1 860 Other receivables 940 Property plant and equipment at 1 October 2022 Cost / valuation 408 400 Accumulated depreciation 110 650 Retained earnings at 1 October 2022 45 850 Revaluation reserve at 1 October 2022 10 000 Share capital (ordinary shares of $1 each) at 1 October 2022 200 000 Share premium at 1 October 2022 14 000 Trade payables 57 150 Trade receivables 82 680 The revaluation reserve relates to land only. The gross profit for the year ended 30 September 2023 was $321 070. The following information is also available. Property plant and equipment at 1 October 2022 Cost / Accumulated Depreciation Allocation of valuation depreciation method depreciation $ $ Land 95 000 Nil – Nil Buildings 215 000 53 750 5% per annum 60% administrative straight line expenses Equipment 98 400 56 900 20% per annum 40% distribution reducing balance costs Total 408 400 110 650 There were no acquisitions or disposals of non-current assets during the year. © UCLES 2023 9706/23/O/N/23

3 The following have not yet been accounted for: On 30 September 2023 1 Land was revalued at $80 000. 2 A bonus issue of one ordinary share for every ten shares held was made. At 30 September 2023 1 Irrecoverable debts of $1480 were to be written off. 2 The directors proposed to maintain the allowance for irrecoverable debts at 5% of trade receivables. 3 Depreciation was to be charged for the year ended 30 September 2023. 4 Administrative expenses of $2480 were owing. 5 Distribution costs of $750 were prepaid. 6 Debenture interest for five months was owing. 7 The charge for taxation was estimated to be $12 500. [Turn over © UCLES 2023 9706/23/O/N/23

3 The following have not yet been accounted for: On 30 September 2023 1 Land was revalued at $80 000. 2 A bonus issue of one ordinary share for every ten shares held was made. At 30 September 2023 1 Irrecoverable debts of $1480 were to be written off. 2 The directors proposed to maintain the allowance for irrecoverable debts at 5% of trade receivables. 3 Depreciation was to be charged for the year ended 30 September 2023. 4 Administrative expenses of $2480 were owing. 5 Distribution costs of $750 were prepaid. 6 Debenture interest for five months was owing. 7 The charge for taxation was estimated to be $12 500. © UCLES 2023 9706/23/O/N/23 [Turn over