SHSS 2023 Prelims 4E5N POA P2

Answer all questions. 1 The following balances are extracted from the books of Dong Boutique on 31 May 2023. $ Fixtures and fittings at cost 150 000 Equipment at cost 370 000 Accumulated depreciation: Fixtures and fittings 26 000 Equipment 133 200 Capital 110 000 Trade receivables 216 900 Trade payables 165 200 Cash at bank 9 550 Inventory 98 420 Allowance for impairment of trade receivables 9 820 4% Bank loan repayable 2026 100 000 Sales revenue 832 600 Sales returns 6 470 Cost of sales 291 400 Drawings 19 200 Rent expense 42 250 Wages and salaries 132 000 Utilities 16 450 Insurance 22 100 Interest on loan 2 080 Additional information 1 Fixtures and fittings are to be depreciated at 10% per annum using the straight-line method with a scrap value of $2 000. 2 Equipment is to be depreciated at 20% per annum using the reducing-balance method. 3 At 31 May 2023: Commission income $3 200 was receivable Utilities $1 960 were still owing Monthly insurance of the same amount was paid up till June 2023 Interest on loan for the year has not been paid in full 4 Inventory costing $3 100 was damaged owing to poor handling. They can only be resold at $1 300. 5 Wages and salaries included $5 000 paid for owner’s personal expense. 6 The allowance for impairment of trade receivables was to be maintained at 5% of trade receivables. REQUIRED (a) Prepare the statement of financial performance for the year ended [10] SHSS2023/PRELIM/4E5N/POA7087P2

Page 2 of 8 31 May 2023. (b) Prepare the statement of financial position as at 31 May 2023. [10] [Total: 20] SHSS2023/PRELIM/4E5N/POA7087P2 [Turn Over

Page 3 of 8 2 Uma Store prepared the following cash at bank account for the month of May 2023: Cash at bank 2023 Cheque Dr $ Cr $ Bal $ May 1 Balance b/d 5 360 Dr 4 Star Trading 2234 260 5 100 Dr 9 Lab Supplies 5 120 10 220 Dr 10 Nano Tech 2235 1 290 8 930 Dr 12 Rent expense 2236 7 700 1 230 Dr 16 Kele Co. 3 400 4 630 Dr 23 Cash in hand (i) 2237 1 500 3 130 Dr 30 Capital (ii) 4 000 7 130 Dr 30 Salaries 2238 8 300 1 170 Cr Jun 1 Balance b/d 1 170 Cr REQUIRED (a) Interpret the entries (i) and (ii) in the cash at bank account above. [2] (b) State one difference between bank loan and bank overdraft. [1] Uma Store received the following bank statement: Bank Statement for month of May 2023 2023 Cheque Withdrawal $ Deposit $ Bal $ May 1 Balance b/d 5 760 Cr 3 Standing order: Insurance 860 4 900 Cr 6 Cheque 2230 400 4 500 Cr 7 Cheque 2234 260 4 240 Cr 13 Direct credit: Renee Lee 1 260 5 500 Cr 23 Cheque 2237 1 500 4 000 Cr 24 Deposit 5 120 9 120 Cr 27 Cheque 2236 7 900 1 220 Cr 30 Deposit 4 000 5 220 Cr 31 Interest 35 5 255 Cr Jun 1 Balance b/d 5 255 Cr It is confirmed that Uma Store had recorded the cheque no. 2236 wrongly in the cash at bank account. REQUIRED (c) Prepare an updated cash at bank account for the month ended 31 May 2023