This document consists of 9 printed pages and 3 blank pages.
SP (SM) S72509/6
© UCLES 2005
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
Paper 2 Structured Questions
1 hour 30 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen in the spaces provided on the Question Paper.
You may use a soft pencil for rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Answer all questions.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.
You may use a calculator.
If you have been given a label, look at the
details. If any details are incorrect or
missing, please fill in your correct details
in the space given at the top of this page.
Stick your personal label here, if
For Examiner’s Use
John, Georgina and Paul are in partnership but have no written partnership agreement.
The partners wish to expand the partnership, and require additional funds.
Their capital accounts at 1 May 2005 were as follows.
Under the existing circumstances, profit of $67 500 is anticipated for the year ended
30 April 2006. There are two options for expanding the business, either of which is acceptable
to all three partners. The selected option would take effect from 1 May 2005.
The two options are:
(i) Borrow $75 000 from the bank at 12% interest per annum. The bank would require
repayment of $6750 at the end of each financial year, in addition to interest.
A manager would have to be employed at a wage of $15 000 per annum and profits
should increase by $27 000 before taking into account b