Capital and revenue income and expenditure: past paper questions
Real questions on capital and revenue income and expenditure
The newest 20 of 135 written questions. Open one to see it on the real paper.
- 9706/21 · October/November 2025 · Q1a[7]
Calculate the revised profit for the year ended 31 December 2024. $ 104 800 Draft profit Workings: Additional information On 1 August 2024, the directors had made a bonus issue of two ordinary shares for every three ordinary shares held at that date. The company policy is to maintain reserves in their most flexible for...
See it on the paper → - 9706/21 · October/November 2025 · Q3b[2]
Calculate the revenue for the year ended 31 December 2024.
See it on the paper → - 9706/32 · October/November 2025 · Q3a[1]
State one reason why a business should treat some research and development costs as revenue expenditure.
See it on the paper → - 9706/32 · October/November 2025 · Q3b[2]
Name two items, other than research and development expenditure, which might be included in a statement of financial position as an intangible asset. 1 The statements of financial position of the company recorded the following values. at 31 December 2024 2023 $ $ Non-current assets at carrying value Premises 304 000 Ma...
See it on the paper → - 9706/31 · May/June 2025 · Q1a[3]
Explain why the club adopts the policy of spreading life membership fees over ten years equally.
See it on the paper → - 9706/31 · May/June 2025 · Q3a[4]
State four uses of a statement of cash flows.
See it on the paper → - 9706/31 · May/June 2025 · Q3b[5]
Calculate the profit from operations for the year ended 31 December 2024.
See it on the paper → - 9706/31 · May/June 2025 · Q3c[11]
Prepare the statement of cash flows for the year ended 31 December 2024 in accordance with IAS 7. Workings: Additional information To improve the cash flow, the directors plan to sell one of the office buildings and then rent it from the purchaser.
See it on the paper → - 9706/41 · May/June 2025 · Q2a[1]
Calculate the number of units expected to be in inventory at 31 May.
See it on the paper → - 9706/21 · October/November 2024 · Q4a(iv)[1]
indirect cost. Additional information Alberto’s business operates a system of absorption costing. There are two production departments, Machining and Finishing, and two service departments, Stores and Canteen. Production departments Service departments Machining $ Finishing $ Stores $ 6 10 4 Floor area (square metres)...
See it on the paper → - 9706/23 · October/November 2024 · Q3b[2]
State two features of a debenture.
See it on the paper → - 9706/23 · October/November 2024 · Q3c[2]
State two features of ordinary shares.
See it on the paper → - 9706/32 · October/November 2024 · Q1a(ii)[9]
the statement of profit or loss.
See it on the paper → - 9706/21 · May/June 2024 · Q1a[3]
Calculate the total revenue for the year ended 31 December 2023. Additional information 1 Bank statements recorded the following payments for the year ended 31 December 2023. Cleaning materials Rent of premises Electricity charges Accountant’s fees Staff wages Vehicle running costs $ 11 420 8 960 3 450 3 800 29 870 1 4...
See it on the paper → - 9706/21 · May/June 2024 · Q1b[10]
Prepare the statement of profit or loss for the year ended 31 December 2023. Haroon and Rakesh Statement of profit or loss for the year ended 31 December 2023 Workings:
See it on the paper → - 9706/21 · May/June 2024 · Q2d[3]
Explain, with reference to an accounting concept, why Sana needs to make an entry for goods taken for own use. Accounting concept Explanation
See it on the paper → - 9706/22 · May/June 2024 · Q1a[1]
Calculate the gross profit of the business for the year ended 31 December 2023. Additional information The following information is also available. 1 Inventory and trade payables At 1 January 2023 $ At 31 December 2023 $ Inventory 16 400 22 460 Trade payables 13 500 15 600 2 All purchases were made on credit. Trade sup...
See it on the paper → - 9706/22 · May/June 2024 · Q1b(i)[3]
purchases
See it on the paper → - 9706/22 · May/June 2024 · Q1b(ii)[4]
the value of goods taken for own use by Zahid. Additional information The following information is available for Zahid’s business. 1 Non-current assets Non-current assets had the following values. $ 1 January 2023 194 000 31 December 2023 188 000 During the year ended 31 December 2023, a non-current asset was sold for...
See it on the paper → - 9706/22 · May/June 2024 · Q1c[12]
Prepare an extract from the statement of profit or loss for the year ended 31 December 2023, starting with the gross profit calculated in (a). Workings: Zahid Statement of profit or loss for the year ended 31 December 2023 (extract) $ Gross profit
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What examiners said
Candidates were provided with a list of closing balances together with items that required adjustments to be made to the financial statements. Having been provided with the draft gross profit for the year, candidates were required to prepare the statement of profit or loss for the year commencing with the gross profit and taking account of the required adjustments. Well-prepared candidates were a...
— Examiner report, October/November 2023, 9706/23 Q1(a) (Cambridge)
The preparation of the capital account was less well answered with very few fully correct accounts. Common errors included the incorrect treatment or omission of the vehicle and the omission of the bank entries.
— Examiner report, October/November 2023, 9706/31 Q2(b)(ii) (Cambridge)
Some candidates prepared a correct journal entry with the most common error being the incorrect calculation or omission of goodwill. A limited number of candidates did not use the correct format with some submitting their answer as a ledger account.
— Examiner report, October/November 2023, 9706/31 Q2(c) (Cambridge)
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