9706_w16_ms_32 - Cambridge International Examinations...

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Cambridge International Examinations
Cambridge International Advanced Level
ACCOUNTING 9706/32
Paper 3 Structured Questions October/November 2016
MARK SCHEME
Maximum Mark: 150
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the October/November 2016 series for most
Cambridge IGCSE
®
, Cambridge International A and AS Level components and some Cambridge O Level
components.

Page 2 Mark Scheme Syllabus Paper
Cambridge International A Level – October/November 2016 9706 32
© UCLES 2016
1 (a) Responses could include:
Donation Member subscription
Voluntary Basis Member’s obligation
From Members and non-members From members only
Irregular payment Regular payment, i.e. monthly or annually
Can be ear marked for specific purpose e.g. For daily running of the organisation e.g.
Buy new equipment Paying for day to day expenses
Can be capitalised Cannot be capitalised
( 1 mark ) × 3 differences [3]
(b) Sunshine Social Club
Shop Trading Account for year ended 31 December 2015
$ $
Gift shop takings 12 420
Inventory at 1 Jan 2015 2 400
Purchases W1 84 300 (2)*
Inventory at 31 December 2015 18 600
Cost of sales 89 700 (1)OF
Gross profit 34 500 (1)OF
Shopkeeper wages W2 23 750 (2)
Depreciation of shop equipment W3 11 800 (2)
Insurance W4 2 300 (3)
Water and electricity W5 5 640 (3)
Loss (8 990) (1)OF
[15]
Workings
W1 Gift shop purchases $74 500 + ($64 300 – $54 500) (1) = $84 300 (1)OF
W2 Shopkeeper wages $30 400 – ($3450 + $3200) (1) = $23 750 (1)OF
W3 Depreciation of shop equipment ($55 000 + $4000) (1) × 20% = $11 800 (1)OF
W4 Insurance $9460 + ($1400 (1) – $1660 (1) = $9200
Allocated to gift shop
$9200 × 25% = $2300 (1)OF
W5 Water and electricity $14 800 - $2700 (1) + $2000 (1) = $14 100
Allocated to gift shop $14 100 x 40% = $5640 (1)OF
(c) Responses could include:
sell goods to non-members (1) to increase revenue (1)
reduce (stop) discount to members (1) e.g. sell goods at market price (1)
reduce expenses (1) e.g. reduce staff wages (1) or find cheaper suppliers (1)
review the fairness of the allocation of expenses (1) and reduce the proportion of expenses
allocated to gift shop (1)
Accept any reasonable alternative.
( 1 mark for point + 1 mark for development) × 2 ways [4]

Page 3 Mark Scheme Syllabus Paper
Cambridge International A Level – October/November 2016 9706 32
© UCLES 2016
(d) ($48 000 + $36 000) (1) – $68 000 (1) × 50% = $8000 (1)OF [3]
[Total: 25]
2 (a) (i) Alpha Limited
Manufacturing Account for the year ended 30 April 2016
$ $
Raw materials at 1 May 2015 1 000
Purchases of raw materials 12 200
Carriage inwards 1 100 (1) 13 300
14 300
Purchases of raw materials 3 100
Cost of raw materials consumed 11