9706 w17 QP 12
9706 w17 QP 12
9706 w17 QP 12
ACCOUNTING 9706/12
Paper 1 Multiple Choice October/November 2017
1 hour
Additional Materials: Multiple Choice Answer Sheet
Soft clean eraser
*5624311206*
There are thirty questions on this paper. Answer all questions. For each question there are four possible
answers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
Calculators may be used.
IB17 11_9706_12/3RP
© UCLES 2017 [Turn over
2
3 A company’s year end is 30 April. It purchases a factory in May 2014 at a cost of $200 000. The
factory will be depreciated over 20 years. A full year’s depreciation is charged in the year of
purchase.
4 A business has a year end of 31 December. It purchased a non-current asset on 1 January 2014
for $100 000. It was depreciated using the reducing balance method at 20% per annum. It was
sold for $40 000 on 1 January 2016.
6 A sales ledger control account had a debit balance of $38 600. The total of individual sales ledger
debit balances was $36 500. The only errors found were as follows.
An irrecoverable debt had been recorded in the ledger of Smith but not the control account.
A contra of $1750 had been correctly recorded in the control account but only $1250
recorded in the ledgers.
Which effect will the provision for doubtful debts have on profit for the year in the income
statement?
A decrease by $625
B decrease by $5625
C increase by $625
D increase by $5625
Which value for bank should be recorded in the statement of financial position at 31 December?
9 Hedley has 100 items of inventory in his warehouse and five more with a customer on a sale or
return basis. He provides the following information.
$ per unit
Which value should appear in the statement of financial position for inventory?
10 A business does not keep complete accounting records. The following information is known for
the year.
A loss $9000
B profit $9000
C loss $15 000
D profit $15 000
11 A business has 500 items of inventory at a cost price of $3 each. The selling price per unit is
based on a mark-up of 20%. Before sale, the items need to be repaired at a total cost of $400.
12 The following information is available for the year ended 31 December 2016.
revenue 75 000
purchases 32 000
carriage inwards 5 400
carriage outwards 4 500
inventory at 1 January 2016 6 300
inventory at 31 December 2016 7 600
What was the gross profit for the year ended 31 December 2016?
1 The capital accounts show the total amount owed to each partner.
2 The capital accounts represent the retained earnings of the business.
3 The capital and current accounts equal the net assets.
14 X, Y and Z had been in partnership, sharing profits and losses in the ratio of 2 : 2 : 1.
On 1 January 2017, Y retired. The balances of his capital and current accounts were as shown.
Y took over a motor van at an agreed value of $3800. The net book value of the motor van was
$4800.
The value of all other assets at 1 January 2017 would remain unchanged.
15 S and T are in partnership, sharing profits and losses in the ratio 2 : 1. The balances on their
capital accounts at 31 March 2017 were:
On 1 April 2017 the partners decide to change the profit-sharing ratio to 3 : 2. Goodwill is to be
valued at $30 000 and is not to be retained in the books of account.
16 A partnership provides the following financial information for the year ended 30 June 2017.
debit credit
1 general reserve
2 retained earnings
3 revaluation reserve
4 share capital
A gross margin
B mark-up
C non-current asset turnover
D profit margin
21 Bradshaw does not keep proper books of account. The following information is available for the
year.
trade
total sales
receivables
$
turnover (days)
A 900 000 19
B 900 000 28
C 937 500 18
D 937 500 27
A carriage inwards
B production materials
C wages of machine operators
D wages of stores staff
units
25 A business has total fixed costs of $240 000. Products have a unit selling price of $25 and a unit
variable cost of $15.
total cost
$
0 level of activity
A fixed
B semi-variable
C stepped
D variable
29 A product has a variable cost of $31.32 per unit. Total fixed costs are $93 600.
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