9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
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Cambridge International AS & A Level
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ACCOUNTING 9706/22
Paper 2 Fundamentals of Accounting October/November 2025
1 hour 45 minutes
You must answer on the question paper.
No additional materials are needed.
INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use an HB pencil for any rough working.
● You may use a calculator.
● You should present all accounting statements in good style.
● International accounting terms and formats should be used as appropriate.
● You should show your workings.
INFORMATION
● The total mark for this paper is 90.
● The number of marks for each question or part question is shown in brackets [ ].
This document has 20 pages. Any blank pages are indicated.
DC (WW) 345773/3
© UCLES 2025 [Turn over
9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
,9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
* 0000800000002 * DFD
DO NOT WRITE IN THIS MARGIN
2
, ,
1 R Limited is a retail business. The following draft statement of profit or loss was prepared for the
year ended 31 December 2024.
$
Revenue 543 280
Cost of sales (292 400)
Gross profit 250 880
Distribution costs (47 560)
DO NOT WRITE IN THIS MARGIN
Administrative expenses (61 300)
Profit from operations 142 020
Finance costs (18 540)
Profit before taxation 123 480
Taxation (18 900)
Profit for the year 104 580
It has been discovered that some errors were made when preparing this draft statement.
DO NOT WRITE IN THIS MARGIN
1 Revenue includes the value of some goods sent on sale or return basis, with a selling price
of $4200. The mark-up on these goods is 50%. The customer has not yet decided whether to
keep these goods.
2 Sales returns of $1600 were omitted from the statement of profit or loss.
3 Purchases returns of $740 were treated as sales returns when preparing the statement of
profit or loss.
4 Distribution costs include the total cost of a marketing campaign of $14 000. The marketing
campaign commenced on 1 May 2024 and will end on 31 August 2025.
DO NOT WRITE IN THIS MARGIN
5 The company’s policy is to depreciate furniture and equipment at 10% per annum, using the
reducing balance method.
The furniture and equipment was purchased for $36 000 on 1 January 2023. Depreciation for
the year ended 31 December 2023 had been correctly calculated.
Depreciation on furniture and equipment for the year ended 31 December 2024 was
incorrectly calculated, using the reducing balance method, at 15% per annum.
Depreciation is divided equally between distribution costs and administrative expenses.
6 Staff wages and salaries of $27 000 had been incorrectly divided between distribution costs
and administrative expenses in the ratio 2 : 1.
DO NOT WRITE IN THIS MARGIN
The correct ratio is distribution costs : administrative expenses, 3 : 2.
7 Finance costs included a full year’s interest on a bank loan of $25 000 at 8% per annum. The
bank loan had been received on 1 May 2024 and the correct interest rate is 6% per annum.
8 Taxation has been overstated by 5%.
ĬÕĊ®Ġ´íÈõÏĪÅĊßü·þ×
© UCLES 2025 ĬèĎòÛĬöïÓČąðàîĒâĢĂ 9706/22/O/N/25
ĥąÅĕµµąõÕõåąÅµąõĕÕ
9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
, 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
* 0000800000003 * DFD
DO NOT WRITE IN THIS MARGIN
3
, ,
(a) Prepare, on page 5, a revised statement of profit or loss for the year ended 31 December 2024.
Workings:
Revenue
Cost of sales
DO NOT WRITE IN THIS MARGIN
Depreciation
Distribution costs
DO NOT WRITE IN THIS MARGIN
Administrative expenses
DO NOT WRITE IN THIS MARGIN
Finance costs
DO NOT WRITE IN THIS MARGIN
Ĭ×Ċ®Ġ´íÈõÏĪÅĊßú·þ×
© UCLES 2025 ĬèčñÓĞúÿæîü¹üĆÆâĒĂ
ĥąµÕõÕĥĕÅąõąÅÕĥµąÕ
9706/22/O/N/25 [Turn over
9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
* 0000800000001 * DFD
, ,
Cambridge International AS & A Level
¬W. 4mHuOªE^z5W
¬hqZ rlusbª
¥UUuUE¥5uEEu¥55U
* 8 1 9 3 9 0 2 9 4 7 *
ACCOUNTING 9706/22
Paper 2 Fundamentals of Accounting October/November 2025
1 hour 45 minutes
You must answer on the question paper.
No additional materials are needed.
INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use an HB pencil for any rough working.
● You may use a calculator.
● You should present all accounting statements in good style.
● International accounting terms and formats should be used as appropriate.
● You should show your workings.
INFORMATION
● The total mark for this paper is 90.
● The number of marks for each question or part question is shown in brackets [ ].
This document has 20 pages. Any blank pages are indicated.
DC (WW) 345773/3
© UCLES 2025 [Turn over
9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
,9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
* 0000800000002 * DFD
DO NOT WRITE IN THIS MARGIN
2
, ,
1 R Limited is a retail business. The following draft statement of profit or loss was prepared for the
year ended 31 December 2024.
$
Revenue 543 280
Cost of sales (292 400)
Gross profit 250 880
Distribution costs (47 560)
DO NOT WRITE IN THIS MARGIN
Administrative expenses (61 300)
Profit from operations 142 020
Finance costs (18 540)
Profit before taxation 123 480
Taxation (18 900)
Profit for the year 104 580
It has been discovered that some errors were made when preparing this draft statement.
DO NOT WRITE IN THIS MARGIN
1 Revenue includes the value of some goods sent on sale or return basis, with a selling price
of $4200. The mark-up on these goods is 50%. The customer has not yet decided whether to
keep these goods.
2 Sales returns of $1600 were omitted from the statement of profit or loss.
3 Purchases returns of $740 were treated as sales returns when preparing the statement of
profit or loss.
4 Distribution costs include the total cost of a marketing campaign of $14 000. The marketing
campaign commenced on 1 May 2024 and will end on 31 August 2025.
DO NOT WRITE IN THIS MARGIN
5 The company’s policy is to depreciate furniture and equipment at 10% per annum, using the
reducing balance method.
The furniture and equipment was purchased for $36 000 on 1 January 2023. Depreciation for
the year ended 31 December 2023 had been correctly calculated.
Depreciation on furniture and equipment for the year ended 31 December 2024 was
incorrectly calculated, using the reducing balance method, at 15% per annum.
Depreciation is divided equally between distribution costs and administrative expenses.
6 Staff wages and salaries of $27 000 had been incorrectly divided between distribution costs
and administrative expenses in the ratio 2 : 1.
DO NOT WRITE IN THIS MARGIN
The correct ratio is distribution costs : administrative expenses, 3 : 2.
7 Finance costs included a full year’s interest on a bank loan of $25 000 at 8% per annum. The
bank loan had been received on 1 May 2024 and the correct interest rate is 6% per annum.
8 Taxation has been overstated by 5%.
ĬÕĊ®Ġ´íÈõÏĪÅĊßü·þ×
© UCLES 2025 ĬèĎòÛĬöïÓČąðàîĒâĢĂ 9706/22/O/N/25
ĥąÅĕµµąõÕõåąÅµąõĕÕ
9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
, 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
* 0000800000003 * DFD
DO NOT WRITE IN THIS MARGIN
3
, ,
(a) Prepare, on page 5, a revised statement of profit or loss for the year ended 31 December 2024.
Workings:
Revenue
Cost of sales
DO NOT WRITE IN THIS MARGIN
Depreciation
Distribution costs
DO NOT WRITE IN THIS MARGIN
Administrative expenses
DO NOT WRITE IN THIS MARGIN
Finance costs
DO NOT WRITE IN THIS MARGIN
Ĭ×Ċ®Ġ´íÈõÏĪÅĊßú·þ×
© UCLES 2025 ĬèčñÓĞúÿæîü¹üĆÆâĒĂ
ĥąµÕõÕĥĕÅąõąÅÕĥµąÕ
9706/22/O/N/25 [Turn over
9706_w25_qp_22.pdf 9706_w25_qp_22.pdf 9706_w25_qp_22.pdf
