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9706_s05_qp_3 2005 May-June Accounting 9706 Question Paper 3 · Cambridge CAIE AS & A Level

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9706_s05_qp_32005 May-June Accounting 9706 Question Paper 3

This is the official Cambridge AS & A Level Accounting (9706) Question Paper 3 from the 2005 May-June examination session. This question paper was sat by Cambridge students worldwide in 2005 and is published by Cambridge Assessment International Education (CAIE). Use it for timed practice under exam conditions to build familiarity with the question format, mark allocation, and time pressure.

Also referenced as: 9706_s05_qp_3 · 9706/3/m/j/05 qp · 9706/3 May/June 2005 qp

Paper 3: Financial Accounting This is Paper 3: Financial Accounting, worth 75 marks with a duration of 1h 15m. Financial accounting topics including published accounts, statements of cash flows, incomplete records, and partnership changes. Requires application of IAS standards.

After reviewing this document, explore the other papers from this session listed below. Pairing question papers with their mark schemes is the most effective way to prepare for your exam.

The most effective way to use this Accounting question paper is to simulate real exam conditions: set a timer for the full duration, work without notes, and write your answers on separate paper. After finishing, mark yourself using the official mark scheme — do not check answers during the paper. This builds exam stamina and reveals your genuine readiness. Repeat this process across 3–5 sessions to identify recurring weak topics in Accounting (9706).

Same paper, other years

Accounting (9706) Question Paper 3 from other exam sessions — practise the same paper across the years, then check each one against its mark scheme.

Examiner Insights — Paper 3: Financial Accounting

Based on analysis of 3 official Cambridge documents (2023, 2025)

1

Incorrect or missing labels on ledger account entries

Candidates lost marks for using incorrect contra account names or abbreviations in ledger entries. Each entry must clearly state the name of the other account involved.9706 Paper 2, May/June 2023

How to fix: Every ledger entry needs the full contra account name. If recording a sale on credit, the debit side of the receivables account must say 'Sales' (not 'S' or 'Sal'). Use the exact account name as it appears in the question or chart of accounts. Abbreviations are not accepted.

2

AVCO inventory valuation method poorly understood

Many candidates could not correctly apply the AVCO method, failing to recalculate the weighted average cost after each purchase.9706 Paper 2, May/June 2023

How to fix: AVCO recalculates the average cost per unit after EVERY purchase. Formula: (existing inventory value + new purchase value) / (existing units + new units) = new average cost per unit. Issues of inventory use this new average until the next purchase. Practise with a running balance table showing quantity, total cost, and unit cost after each transaction.

4

Partner loan account mislabelled or placed incorrectly

Partner loan accounts were frequently included in the wrong section of the statement of financial position or labelled as part of capital.9706 Paper 3, May/June 2025

How to fix: A partner loan is a non-current liability, NOT part of partner capital. It appears in the liabilities section of the statement of financial position. Interest on the loan is charged to the income statement as an expense. Do not confuse it with the partner's capital account or current account.

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All Accounting (9706) Papers — 2005 May-June

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Accounting Exam Guide: How to Score Higher

Top mistakes, scoring patterns & answer frameworks from 3 official Cambridge documents