Syllabus paper cambridge international asa level

Syllabus Paper
Cambridge International AS/A Level – October/November 2015 9706 23
© Cambridge International Examinations 2015
(b) Current account – Tania
$ $
Int on drawings 350 (1) Balance 5 000 (1)
Drawings 5 000 (1) Int on capital 4 900 (1)
Balance c/d 71 068 Salary 17 400 (1)
Profit share 49 218 (1of)
76 418 76 418
Balance b/d 71 068 (1)
[7]
(c) Depletion, wear and tear, obsolescence, technological advance, usage, time, any other
acceptable answer (1 mark per point)
Any 4 to a maximum of 4 [4]
(d) Matching – to match costs with income generated.
Prudence – so as not to overstate profits.
Consistency – using the same depreciation method.
Any 2 to a maximum of 4 [1 concept, 1 explanation] [4]
(e) Motor vehicles tend to fall in value more in the early years. (1) They lose value the minute
they are registered for use. Repair and maintenance costs increase as the motor vehicle gets
older (1) . The straight line method of depreciation depreciates the vehicle at the same
amount each year which does not balance up the increasing repair and maintenance costs in
later years. (1) However, the reducing balance method depreciates the motor vehicle more in
the earlier years and less in later years. The reducing balance method therefore depreciates
the asset less in later years which balances with the increasing repair and maintenance costs
thus providing a fairer matching of costs with income generated (1).
1 mark to a maximum of 4 [4]
[Total: 30]

Page 6 Mark Scheme Syllabus Paper
Cambridge International AS/A Level – October/November 2015 9706 23
© Cambridge International Examinations 2015
3 (a)
Mynor Hanbridge
$ $
Direct materials 9 600 (1) 9 000 (1)
Direct labour 28 800 (1) 27 000 (1)
Total 38 400 36 000
[4]
(b)
Total
$
Mynor
$
Hanbridge
$
Sales and
administration
$
Supervisor’s salary 5 900 3 200 2 700 0 (1) row
Rent 12 500 6 250 5 000 1 250 (1) row
Power 6 000 2 400 3 000 600 (1) row
Depreciation 1 000 450 400 150 (1) row
Sales and administration 13 550 0 0 13 550