Adjustments to draft financial statements: past paper questions
Real questions on adjustments to draft financial statements
The newest 20 of 386 written questions. Open one to see it on the real paper.
- 9706/22 · October/November 2025 · Q3a(i)[2]
Machinery
See it on the paper → - 9706/22 · October/November 2025 · Q3a(ii)[2]
Motor vehicles Additional information On 1 January 2025, it was decided to revalue the freehold property to $925 000.
See it on the paper → - 9706/22 · October/November 2025 · Q3b[4]
Prepare a journal entry to record the revaluation of the freehold property. A narrative is not required. Journal Date Account Dr $ Cr $ Additional information On 1 January 2025, Machine 1 was disposed of for $20 400 received by cheque.
See it on the paper → - 9706/22 · October/November 2025 · Q3c[4]
Prepare the disposal account. Disposal account Details $ Details $ Additional information A director had suggested that in future it would be easier if the straight-line method of depreciation was used for all non-current assets. However, the company’s accountant disagrees and says this suggestion should not be impleme...
See it on the paper → - 9706/22 · October/November 2025 · Q3d[3]
Explain, with reference to one accounting concept, why the suggestion should not be implemented. Explanation: Concept:
See it on the paper → - 9706/23 · October/November 2025 · Q2a[8]
Complete the table to identify and describe the accounting concept which has been ignored in each of the errors. Error Accounting concept ignored Description 1 2 3 4 Additional information The owner of the business wishes to correct the errors that the trainee accountant has made.
See it on the paper → - 9706/23 · October/November 2025 · Q2b[6]
Calculate the revised profit for the year ended 31 December 2024. $ 36 960 Draft profit Additional information The business has a highly skilled workforce, and the owner is of the opinion that this asset should be reflected in the statement of financial position.
See it on the paper → - 9706/23 · October/November 2025 · Q2c[1]
State which accounting concept should be applied when deciding whether or not to record this asset in the statement of financial position.
See it on the paper → - 9706/23 · October/November 2025 · Q3b[10]
Prepare the following ledger accounts to record the transactions during the year ended 31 March 2025. Share premium account Date Details $ Date Details $ Details $ Retained earnings account Date Details $ Date
See it on the paper → - 9706/31 · October/November 2025 · Q1e[5]
Advise the directors whether or not the company should pay a dividend. Justify your answer.
See it on the paper → - 9706/31 · October/November 2025 · Q2a[6]
Discuss the significance of changes in membership and the effect on the club’s funds with reference to the entries in these ledger accounts. Additional information The receipts and payments account of the club for the year ended 31 December 2024 was as follows: $ $ Annual subscriptions 19 600 Balance b/d 1 450 Life mem...
See it on the paper → - 9706/31 · October/November 2025 · Q2b[9]
Prepare the income and expenditure account for the year ended 31 December 2024. Workings: Additional information The total assets of the club at 31 December 2024 amounted to $18 620.
See it on the paper → - 9706/31 · October/November 2025 · Q2c[5]
Calculate the accumulated fund at 31 December 2024. Additional information The managing committee has received a suggestion that the club starts to operate a shop selling sports clothing and footwear to members.
See it on the paper → - 9706/31 · October/November 2025 · Q2d[5]
Advise the committee members whether or not the club should adopt this suggestion. Justify your answer.
See it on the paper → - 9706/33 · October/November 2025 · Q1a[2]
Explain why a manufacturing business might decide to account for factory profit.
See it on the paper → - 9706/33 · October/November 2025 · Q1b[2]
Explain the recording of the provision for unrealised profit in the statement of financial position.
See it on the paper → - 9706/33 · October/November 2025 · Q1d[8]
Calculate the profit for the year ended 31 December 2024. Start your answer with the gross profit shown in information point 5. Additional information Faizan has been contacted by a new customer who wishes to place a special order. This order would increase sales volume by 50%, but Faizan’s business is already working...
See it on the paper → - 9706/33 · October/November 2025 · Q2a[10]
Complete the following table to calculate the profit for each six-month period and the profit for the year ended 31 December 2024. January to June July to December Full year 2024 $ $ $ Revenue Cost of sales Gross profit Wages and salaries Rent Other expenses Profit Workings: Depreciation
See it on the paper → - 9706/33 · October/November 2025 · Q3a(i)[1]
dividend per share in 2024
See it on the paper → - 9706/33 · October/November 2025 · Q3a(ii)[1]
dividend cover in 2024
See it on the paper →
What examiners said
Few candidates prepared the current account correctly as in many cases the drawings were either incorrect or not totalled. The remainder of the account was generally well done with a good layout and labels. Some candidates did confuse the two partners.
— Examiner report, February/March 2025, 9706/22 Q1(c) (Cambridge)
The percentage calculation was performed correctly by most candidates with no common errors.
— Examiner report, February/March 2025, 9706/42 Q2(b) (Cambridge)
There were some fully correct budgets but also a range of errors. Some candidates did not carry forward the balance at the end of February, while some omitted the discount completely.
— Examiner report, February/March 2025, 9706/42 Q2(c) (Cambridge)
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