Bukit View 2023 3N EOY

2023 Holiday Revision Paper – Bukit View 2023 Sec 3N EYE SOLUTIONS -PAPER 1- Q1a (i) Assets are resources a business owns or controls that are expected to provide future benefits [1] (ii) Liabilities are obligations such as debts or amounts owing by a business to others that are expected to be settled in the future [1] Q1b Total assets = 67 000 + 23 500 + 12 700 + 19 000 = $122 200 [1] Total liabilities = 50 000 + 11 340 = $61 340 [1] Capital = 122 000 – 61 340 = $60 860 [1] Q1c Effects of transactions on Assets ($) Liabilities ($) Equity ($) 2 Cash at bank + 30,000 Loan from XYZ bank +30,000 3 Trade receivables +1,500 Inventory -850 Sales revenue +1,500 Cost of sales -850 4 Inventory -5,000 Trade payables -5,000 1 mark for each entry [8] [Total: 12]

Q2a To check on the accuracy of recording in the ledgers. [1] To facilitate the preparation of the financial statements. [1] Q2b A balanced trial balance is not an absolute proof of accuracy. There may be errors not revealed by a trial balance. [1] Q2c Amanda Dresses Trial balance for as at 31 July 2023 Dr $ Cr $ Capital [0.5] 58 000 Cash at bank (overdraft) [4500 + 1800] [0.5] 6 300 Cash in hand [1100 – 800] [0.5] 300 Discount received [800 + 200] [0.5] 1 000 Motor vehicles [0.5] 110 000 Trade receivables [0.5] 3 600 Trade payables [2370 – 2000] [0.5] 370 Office equipment [50000 + 800] [0.5] 50 800 Sales revenue [0.5] 128 800 Utilities [0.5] 36 420 Drawings [4000 + 250] [0.5] 4 250 Inventory [5400 – 250] [0.5] 5 150 Bank loan [0.5] 28 050 Sales returns [0.5] 12 000 222 520 222 520 [7] Q2d Amanda Dresses Statement of Financial Position as at 31 July 2023 $ Current Liabilities Cash at bank (overdraft) 7 050 [2] [Total:12]

Q3a Accounting provides financial information for stakeholders to make informed decisions regarding the management of resources and performance of businesses. [1] Q3b Identify and record, adjust, report, close [2] [1m for any 2] Q3c Scenario Accounting theory The business prepares its financial statements quarterly Accounting period theory [1] Activities of a business are separate from the actions of the owner Accounting entity theory [1] Transactions should be recorded at their original cost Historical cost theory [1] Q3d Date 2023 Transaction Source document Sept 1 Cash sales Receipt Sept 11 Bought a new oven on credit Invoice [1] Sept 20 Returned spoilt cake ingredients to credit supplier Credit Note [1] Sept 25 Transferred funds to credit supplier for amount owing Bank statement/Payment voucher [either one 1m] [Total:9]

Q4a (i) On 1 August 2023, Nur owed Kaleb $5,000 [1] (ii) On 11 August 2023, Nur returned goods previously bought for $800 from Kaleb on credit. [1] (iii) On 21 August 2023, Kaleb discovered that the cheque of $4,750 paid by Nur on 18 August was dishonour