Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

Ahmed operates a manufacturing business in Singapore that produces computer screens.
(a)[2]

Calculate the unit value at which the screens are moved from Singapore to India.

(b(i))[3]

Draw up a condensed bank account including the entries that relate to the consignment in Ahmed's books.

(b(ii))[7]

Draw up the consignment account in Ahmed's books.

(b(iii))[5]

Prepare Rohan's account in Ahmed's books.

(c)[8]

Advise Ahmed on whether he should carry on with the consignment arrangement with Rohan. Support your answer with relevant calculations and references to non-financial factors.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Since cost is $80$, the selling price is $100$

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