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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
