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 ba