This document consists of 7 printed pages and 1 blank page.
© UCLES 2008
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
Paper 4 Problem Solving (Supplementary Topics)
READ THESE INSTRUCTIONS FIRST
If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Answer all questions.
All accounting statements are to be presented in good style. Workings should be shown.
You may use a calculator.
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.
© UCLES 2008
1 Ahmed, Bola and Chaudhry have been in partnership for a number of years. The final accounts
for the year ended 31 March 2008 had been prepared by their new finance manager appointed in
late January 2008.
The profit and loss appropriation account showed that:
Ahmed had been credited with a partnership salary
Interest on capital had been credited at 8 % per annum:
Interest on drawings
Each partner’s share of residual profits was
Although the final accounts were numerically accurate the finance manager had not taken into
account the following:
1 A new partnership agreement was drawn up and took effect from 1 October 2007.
The new partnership agreement provided that:
Ahmed and Bola would be credited with an annual salary of $10 000 and