If no suffix award 1 for each correct pair If answer not to 2 decimal places

If no suffix award 1 for each correct pair if answer

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If no suffix, award 1 for each correct pair: If answer not to 2 decimal places, but correct working shown, full marks. (b)Acid test worse, due to lack of cash because of expenditure on stock Stockturn worse due to surplus unsold stock Debtors collection worse due to poor credit control. GP ratio worse due to increased cost price not passed on to customer. NP ratio worse due to increased operating expenses. ROCE almost unchanged/slightly worse due to similar rates of change in capital and net profit 2 for each, maximum (12) These answers are not exclusive - use your judgement.
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Page 2 Mark Scheme Syllabus Paper ACCOUNTING – JUNE 2004 9706 2 © University of Cambridge International Examinations 2004(c)Advantages Show trends Help compare with (i) earlier years (ii) other businesses Help decision making Show particular problem areas Maximum (3) Comparisons may be difficult due to Disadvantages (i) changes in the economy (ii)changes in technology (iii)changes in Staff (iv)changes in company policy Reasons for changes are not always obvious Accuracy of information may be a problem Historic cost used - takes no account of inflation Maximum (3) These answers are not exclusive - use your judgement.
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Page 3 Mark Scheme Syllabus Paper ACCOUNTING – JUNE 2004 9706 2 © University of Cambridge International Examinations 2004AS ACCOUNTING - SUMMER 2004 - 9706/2 A2 (a) Working for Goodwill Titus Ronicus Net effectIntroduced $ $$$30 000 worth $45000 Titus 15 000 Cr 15 000 Cr$27 100 worth $30 000 Ronicus 2 900 Cr 2 900 CrTitus 9 000 Dr 6 000 Dr 15 000 DrRonicus 1 740 Dr 1 160 Dr 2 900 DrNet 4260 Cr 4 260 Dr Must have same amount total of goodwill on both sides and must cancel out or no marks as Goodwill would otherwise have to appear as an account. Capital Accounts Titus Ronicus Titus Ronicus$ $ $ $ 49 260 4 260 25 740 30 000 45 000 4 260 30 00049 260 30 00049 2602Sundries 1Goodwill Balance b/d Alternative Capital Accounts Goodwill Balance c/d Titus Ronicus 49 260 Titus 25 740 Ronicus 2 2 1 OF (8) $ $ $ $ Goodwill 17406 0002Sundries 45 000 30 0002 Balance c/d 4926025 7401Goodwill 6 000 1 740 2 5100031 74051 00031 740Balance bid 49 260 25 740 1 OF (8) Titus Ronicus Titus Ronicus Goodwill 107407 1602Sundries 45 000 30 000 2 BaI cid 4926025 7401Goodwill15 000 2 9002 60 00032 90060 000 32 900 Bal b/d49 260 25 7401 OF (8)
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Page 4 Mark Scheme Syllabus Paper ACCOUNTING – JUNE 2004 9706 2 © University of Cambridge International Examinations 2004(b) Profit and Loss Appropriation Account for the year ended 30 September 2004 $ $ $ Net Profit 56 000 (1)+ 1050 (2)57 050 3 Interest on Drawings Titus 450 Ronicus 2507001 Not 2 57 750 Interest on Capital Titus 2 463 1 OF Ronicus 1 2873 750 1 OFPartner's Salary Ronicus 20 000 23 750 1 34 000Share of Residue Titus 20 400 unless 1 OFRonicus 13600aliens 340001 OF (9) (c) TitusCurrent Accounts Ronicus Titus Ronicus $ $ $ $ Drawings 9 000 5 0002 Share of Residue 20 400 13 600 2 Int on drawings 450 2502 Int on Capital 2 463 1 287 2 Goods taken 600 4502 Salary 20 000 1 Balance c/d 12813291871 ____________ 2286334 88722 86334887Balance b/d12 813 29 187 1 (13)
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Page 5 Mark Scheme Syllabus Paper ACCOUNTING – JUNE 2004 9706 2 © University of Cambridge International Examinations 2004A/S ACCOUNTING SUMMER 2004 - 9706/2
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