Bukit View 2023 3N EOY (ignore the instructions)

2023 Holiday Revision Paper – Bukit View 2023 Sec 3N EYE Instructions: Complete this whole paper (both Paper 1 & Paper 2) and hand in on the first lesson of 2024 for marking. You may use notes or other materials to help you to do the paper. Those who do not hand in on time will stay back to do the full paper under exam conditions. Those who fail (less than 50%) will do another paper. -PAPER 1- 1 Wallace set up a business on 1 March 2023. The opening assets and liabilities of the business were as follows: $ Office equipment 67 000 Mortgage loan 50 000 Inventory 23 500 Cash at bank 12 700 Trade receivables 19 000 Trade payables 11 340 REQUIRED (a) Explain the following terms: (i) assets [1] (ii) liabilities [1] (b) Calculate the capital of Wallace’s business on 1 March 2023. [3]

Wallace provided the following information for his business in April 2023. REQUIRED 1 Wallace contributed a motor vehicle worth $10 000 to the business. 2 Business obtained a bank loan of $30 000 from XYZ bank. 3 Business sold goods for $1 500 on credit. The cost of goods sold was $850. 4 Business returned damaged goods worth $5 000 to credit supplier. (c) Show the effects of these transactions on the accounting elements. The first transaction has been completed as an example. Effects of transactions on Assets ($) Liabilities ($) Equity ($) 1 Motor Vehicles + 10,000 No effect Capital + 10,000 2 3 4 [8] [Total: 13]

2 The following balances were extracted from Amanda Dresses’ books on 31 July 2023. $ Capital 58 000 Cash at bank (overdrawn) 4 500 Cash in hand 1 100 Discount received 800 Motor vehicles 110 000 Trade receivables 3 600 Trade payables 2 370 Office equipment 50 000 Sales revenue 128 800 Utilities 36 420 Drawings 4 000 Inventory 5 400 Bank loan 28 050 Sales returns 12 000 The accountant realised that the following transactions for the month of July 2023 were not recorded. 1 Amanda, the owner of Amanda Dresses, took inventory costing $250 as a gift for her friend’s birthday. 2 Bought office equipment for $800 using cash. 3 The business issued $1 800 cheque in full settlement of $2 000 owing to credit suppliers. REQUIRED (a) Give two reasons for preparing a trial balance. [2] (b) State one limitation of a trial balance. [1]

(c) Prepare an adjusted trial balance for Amanda Dresses as at 31 July 2023. [7]

(d) Prepare an extract of statement of financial position as at 31 July 2023. Show clearly how the cash at bank balance would be presented. Amanda Dresses Statement of Financial Position as at 31 July 2023 [2] [Total: 12]

3 Jasmine started a business to buy and sell cakes. To help her manage the accounting records of her business, she decided to hire an accountant. REQUIRED (a) Explain the role of accounting. [1] (b) State the four stages of the accounting cycle. [2] (c) State the accounting theory that the business applied in each of the scenarios below. Scenario Accounting theory The business prepares its financial statements quarterly. Activities of a business are separate from the actions of the owner. Transactions should be recorded at their original cost. [3]

(d) Identify the source document used to record each transaction listed below. The first transaction has been completed as an example. Date 2023 Transaction Source document Sept 1 Cash sales Receipt Sept 11 Bought a new oven on credit Sept 20 Returned spoilt cake ingredients to credit supplier Sept 25 Transferred funds to credit supplier for amount owing [3] [Total: 9]

4 Kaleb buys and sells carpet s on credit. The following account is extracted from Kaleb’s books. Trade Receivables – Nur 2023 Dr $ Cr $ Bal $ Aug 1 Balance b/d 5 000 Dr 6 Sales revenue 4 800 9 800 Dr 11 Sales returns 800 9 000 Dr 18 Cash at bank 4 750 4 250 Dr 18 Discount allowed 250 4 000 Dr 21 Cash at bank 4 750 8 750 Dr 21 Discount allowed 250 9 000 Dr Sep 1 Balance b/d 9 000 Dr REQUIRED (a) Interpret the transactions that took place on the following dates. (i) 1 August 2023 [1] (ii) 11 August 2023 [1] (iii) 21 August 2023 [2] (b) State two non-accounting information that Kaleb has to consider when deciding whether to grant credit to a customer. [2] [Total: 6] End of paper

-PAPER 2- 1 The following balances were extracted from the books of Yun Nee Traders on 30 April 2023. Capital, 1 May 2022 $ 55 230 Cost of sales 32 300 Bank loan 40 000 Office equipment 17 000 Motor vehicle 36 000 Utilities expense 27 800 Discount received 550 Insurance 7 500 Salaries expense 9 250 Interest expense 12 860 Rent income 11 900 Sales revenue 98 800 Sales returns 23 900 Trade receivables 13 000 Trade payables 8 500 Inventory 14 450 Cash at bank 12 120 Drawings 3 000 Advertising 5 800 The following information was made available on 30 April 2023. 1 Rent income has been collected for fourteen months till 30 June 2023. 2 Insurance costs $500 per month. 3 Advertising expense of $660 for the month of April 2023 was unpaid. 4 Inventory was written down to its net realisable value of $12 250. 5 Owner withdrew $2 800 from the business bank account for personal use. This was not recorded in the books.

REQUIRED 1 (a) Prepare the statement of financial performance for the year ended 30 April 2023. Yun Nee Traders Statement of Financial Performance for the year ended 30 April 2023 [10]