9706_w23_qp_32

Cambridge International AS & A Level * 6 5 3 4 4 7 7 1 5 2 * ACCOUNTING 9706/32 Paper 3 Financial Accounting October/November 2023 1 hour 30 minutes You must answer on the question paper. You will need: Insert (enclosed) 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 diagrams, graphs or rough working. ● You may use a calculator. ● International accounting terms and formats should be used as appropriate. ● You should show your workings. INFORMATION ● The total mark for this paper is 75. ● The number of marks for each question or part question is shown in brackets [ ]. ● The insert contains all of the sources referred to in the questions. This document has 12 pages. Any blank pages are indicated. DC (CE) 312019/2 © UCLES 2023 [Turn over

Cambridge International AS & A Level * 6 5 3 4 4 7 7 1 5 2 * ACCOUNTING 9706/32 Paper 3 Financial Accounting October/November 2023 1 hour 30 minutes You must answer on the question paper. You will need: Insert (enclosed) 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 diagrams, graphs or rough working. ● You may use a calculator. ● International accounting terms and formats should be used as appropriate. ● You should show your workings. INFORMATION ● The total mark for this paper is 75. ● The number of marks for each question or part question is shown in brackets [ ]. ● The insert contains all of the sources referred to in the questions. This document has 12 pages. Any blank pages are indicated. DC (CE) 312019/2 © UCLES 2023 [Turn over

2 1 Read Source A in the insert. (a) Calculate the values of the following at cost : inventory of finished goods at 1 July 2022 ................................................................................................................................................... ................................................................................................................................................... cost of production ................................................................................................................................................... ................................................................................................................................................... inventory of finished goods at 30 June 2023. ................................................................................................................................................... ................................................................................................................................................... [3] Additional information After preparation of the draft statement of profit or loss the following items were discovered. 1 Administrative expenses included $12 000 of costs which actually related to the factory. 2 During June 2023 goods were sent to a customer on a sale or return basis. The goods had a selling price of $3000 and a cost of $1400 before factory profit. These had been treated as having been sold in the draft statement of profit or loss although by the year end the customer had not declared an intention to buy the goods. 3 A delivery van had a carrying value of $17 000. A review on 30 June 2023 showed that it had a fair value of $12 500 and a value in use of $13 000. No adjustment had been made as a result of this review. 4 The company was facing legal proceedings in July 2023. The company’s lawyer had advised that the company had a 35% chance of having to pay a fine of $8000. © UCLES 2023 9706/32/O/N/23

2 1 Read Source A in the insert. (a) Calculate the values of the following at cost : inventory of finished goods at 1 July 2022 ................................................................................................................................................... ................................................................................................................................................... cost of production ................................................................................................................................................... ................................................................................................................................................... inventory of finished goods at 30 June 2023. ................................................................................................................................................... ................................................................................................................................................... [3] Additional information After preparation of the draft statement of profit or loss the following items were discovered. 1 Administrative expenses included $12 000 of costs which actually related to the factory. 2 During June 2023 goods were sent to a customer on a sale or return basis. The goods had a selling price of $3000 and a cost of $1400 before factory profit. These had been treated as having been sold in the draft statement of profit or loss although by the year end the customer had not declared an intention to buy the goods. 3 A delivery van had a carrying value of $17 000. A review on 30 June 2023 showed that it had a fair value of $12 500 and a value in use of $13 000. No adjustment had been made as a result of this review. 4 The company was facing legal proceedings in July 2023. The company’s lawyer had advised that the company had a 35% chance of having to pay a fine of $8000. © UCLES 2023 9706/32/O/N/23

3 (b) Prepare a corrected statement of profit or loss for the year ended 30 June 2023. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... Workings: [13] [Turn over © UCLES 2023 9706/32/O/N/23

3 (b) Prepare a corrected statement of profit or loss for the year ended 30 June 2023. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... Workings: [13] © UCLES 2023 9706/32/O/N/23 [Turn over