9706_y10_sp_4 - w w ap eP m e tr.X w om.c s er UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level

9706_y10_sp_4 - w w ap eP m e tr.X w om.c s er UNIVERSITY...

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This document consists of 7 printed pages and 1 blank page. © UCLES 2010 [Turn over For Examiner's Use 1 2 3 Total UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level ACCOUNTING 9706/04 Paper 4 Problem Solving (Supplementary Topics) For Examination from 2010 SPECIMEN PAPER 2 hours Additional Materials: Answer Booklet/Paper READ THESE INSTRUCTIONS FIRST Do not open this booklet until you are told to do so. Write your name, Centre number and candidate number on all the work you hand in. Write in dark blue or black pen. You may use soft pencil for any diagrams, graphs or rough working. Answer all questions. All accounting statements are to be presented in good style. Workings should be shown. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. You may use a calculator.
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21A & U Ltd is a company formed to take over the partnership business of Amal and Ushi on 1 November 2009. Profits and losses are shared equally. The partnership statement of financial position (balance sheet) at that date was as follows: Amal and Ushi Statement of Financial Position at 31 October 2009 $ Non-current assets (net book value) 60 000Current assets Inventory Trade receivables Cash equivalents 34 00041 0009 65084 650Less Current liabilities Trade payables 21 300Net current assets (working capital) 63 350123 350Less Non-current liabilities Loan from Ushi at 10% per annum 20 000103 350Financed by: Capital accounts: Amal Ushi 60 00040 000100 000Current accounts: Amal Ushi 2 0001 3503 350103 350The terms of the sale of the partnership business to A & U Ltd are: 1 All the assets and liabilities of the partnership are to be taken over by A & U Ltd. The assets are to be valued as shown below. $ Non-current assets Inventory Trade receivables 85 000 31 000 37 650 2 $
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