Cambridge International AS & A Level
ACCOUNTING 9706/22
Paper 2 Fundamentals of Accounting February/March 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 that are necessary in the question.
● 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.
[Turn over
1 The following trial balance was extracted from the books of V Limited at 31 December 2023.
, 2
$ $
8% debentures (2029) 240 000
Administrative expenses 17 200
Bank loan 32 000
Bank loan interest 2 600
Carriage inwards 4 500
Carriage outwards 8 700
Cash and cash equivalents 8 200
Distribution costs 30 700
Dividends paid 37 500
Furniture and equipment at carrying value, 1 January 2023 956 000
Inventory at 1 January 2023 47 800
Property at valuation 980 000
Purchases 522 000
Rental income 13 300
Retained earnings 174 000
Returns 5 100
Revenue 997 100
Share capital: 4 000 000 ordinary shares of $0.25 each 1 000 000
Share premium 215 000
Trade payables 57 800
Trade receivables 47 900
Wages: office staff 49 300
Wages: sales staff 38 300
2 742 500 2 742 500
The following information is also available.
1 At 31 December 2023 inventory was valued at $49 500.
2 Distribution costs include a prepayment of $6000.
© UCLES 2025
, 3
3 At 31 December 2023, rental income of $3000 had been received in advance.
4 Provision should be made for depreciation of furniture and equipment at 20% per annum using the
reducing balance method.
Depreciation charges should be allocated: 60% administrative expenses; 40%
distribution costs.
5 At 31 December 2023, office wages of $5800 were due but unpaid.
6 The debentures had been issued on 1 October 2023. The first interest payment is due on 31 March
2024.
7 Tax for the year ended 31 December 2023 is estimated to be $27 900.
(a) Prepare the statement of profit or loss for the year ended 31 December 2023. Use the
space provided on page 4 to show your workings.
V Limited
Statement of profit or loss for the year ended 31 December 2023
$
Revenue
Cost of sales
Gross profit
Other income
Distribution costs
Administrative expenses
Profit from operations
Finance costs
Profit before tax
Tax
© UCLES 2025 9706/22/F/M/25 [Turn over
ACCOUNTING 9706/22
Paper 2 Fundamentals of Accounting February/March 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 that are necessary in the question.
● 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.
[Turn over
1 The following trial balance was extracted from the books of V Limited at 31 December 2023.
, 2
$ $
8% debentures (2029) 240 000
Administrative expenses 17 200
Bank loan 32 000
Bank loan interest 2 600
Carriage inwards 4 500
Carriage outwards 8 700
Cash and cash equivalents 8 200
Distribution costs 30 700
Dividends paid 37 500
Furniture and equipment at carrying value, 1 January 2023 956 000
Inventory at 1 January 2023 47 800
Property at valuation 980 000
Purchases 522 000
Rental income 13 300
Retained earnings 174 000
Returns 5 100
Revenue 997 100
Share capital: 4 000 000 ordinary shares of $0.25 each 1 000 000
Share premium 215 000
Trade payables 57 800
Trade receivables 47 900
Wages: office staff 49 300
Wages: sales staff 38 300
2 742 500 2 742 500
The following information is also available.
1 At 31 December 2023 inventory was valued at $49 500.
2 Distribution costs include a prepayment of $6000.
© UCLES 2025
, 3
3 At 31 December 2023, rental income of $3000 had been received in advance.
4 Provision should be made for depreciation of furniture and equipment at 20% per annum using the
reducing balance method.
Depreciation charges should be allocated: 60% administrative expenses; 40%
distribution costs.
5 At 31 December 2023, office wages of $5800 were due but unpaid.
6 The debentures had been issued on 1 October 2023. The first interest payment is due on 31 March
2024.
7 Tax for the year ended 31 December 2023 is estimated to be $27 900.
(a) Prepare the statement of profit or loss for the year ended 31 December 2023. Use the
space provided on page 4 to show your workings.
V Limited
Statement of profit or loss for the year ended 31 December 2023
$
Revenue
Cost of sales
Gross profit
Other income
Distribution costs
Administrative expenses
Profit from operations
Finance costs
Profit before tax
Tax
© UCLES 2025 9706/22/F/M/25 [Turn over
