9706_w17_ms_32.pdf - Cambridge Assessment International Education Cambridge International Advanced Subsidiary and Advanced Level ACCOUNTING 9706\/32

9706_w17_ms_32.pdf - Cambridge Assessment International...

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® IGCSE is a registered trademark. This document consists of 11 printed pages. © UCLES 2017 [Turn over Cambridge Assessment International Education Cambridge International Advanced Subsidiary and Advanced Level ACCOUNTING 9706/32 Paper 3 Structured Questions October/November 2017 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 International will not enter into discussions about these mark schemes. Cambridge International is publishing the mark schemes for the October/November 2017 series for most Cambridge IGCSE ® , Cambridge International A and AS Level components and some Cambridge O Level components.
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9706/32 Cambridge International AS/A Level – Mark Scheme PUBLISHED October/November 2017 © UCLES 2017 Page 2 of 11 Question Answer Marks 1(a) $ $ Revenue 45 000 Cost of sales Opening inventory 825 (1) Purchases 28 700 (2) 29 525 Closing inventory (1 650) (1 OF) (27 875) (1OF) Gross profit 17 125 (1 OF) Deduct: Insurance 3425 (2) Electricity 775 (1) (4 200) Restaurant profit 12925 (1 OF) Purchases 28 350 – 1750 (1) + 2100 (1) = 28 700 Insurance (4800 + 950 +1100) (1) 50% = 3425 (1OF) 10 1(b)(i) Gross margin = 17 125 / 45 000 = 38.06% (1OF) Difference = 45.00 – 38.06 = 6.94% (1OF) 2 1(b)(ii) Consider market (1) – provide higher quality food (1) to appeal to target market. (1) Seek cheaper suppliers / seek discounts from suppliers / buy in bulk (1) to reduce cost of sales. (1) Increase the prices for items served in the restaurant. (1) Should earn higher revenue. (1) Reduce food wastages. (1) This should increase the gross margin. (1) 2 marks Max 3 points (1 mark for stating and 1 mark for developing) 6 1(c) The subscription received is debited to the bank/receipts and payments account and credited to the life membership fund. (1) An amount is transferred annually to the income and expenditure account. (1) The remaining balance in the fund is shown in the statement of financial position. (1) Max 2 2
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9706/32 Cambridge International AS/A Level – Mark Scheme PUBLISHED October/November 2017 © UCLES 2017 Page 3 of 11 Question Answer Marks 1(d) Beneficial if live longer than 10 years. (1) Otherwise not beneficial. (1) Does he have funds available to pay $1000? (1) Saves ‘trouble’ of renewing every year. (1) Avoids any increases in subscriptions over the period. (1) There may be other benefits for life membership. (1) If he wishes to resign before the ten-year period, he may not get any refund. (1) Decision. (1) Max. 4 + Decision 1 5 Question Answer Marks 2(a) Ordinary share capital Share premium General reserve Retained earnings $000s $000s $000s $000s At 1 Jan 2016 1000 300 100 220 (1) for four Share issue 700 (1) 560 (1) Bonus issue 510 (1) (510) (1) Profit for the year 195 (3) *W1 Transfer to general reserve 40 (1) (40) (1) Dividend paid (55) (1) At 31 Dec 2016 2210 350 140 320
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