MJR 4E5N PRE POA P1 2023 ANSWER

Name Register Number Class Calculator Model ANSWER MANJUSRI SECONDARY SCHOOL PRELIMINARY EXAMINATION 2023 Subject: Principles of Accounts Paper: 7087 / 01 Level: Secondary 4 Express / 5 Normal (Academic) Date: 28 August 2023 Duration: 1 hour Setter: Ms Tan Ai Hua Candidates answer on the Question Paper. No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your Name, Register Number and Class in the spaces at the top of this page. Write in dark blue or black pen. You may use an HB pencil for any rough working. Do not use staples, paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The businesses described in this question paper are entirely fictitious. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 9 printed pages and 3 blank pages. [Turn over For Examiner’s Use Q1 /10 Q2 /9 Q3 /10 Q4 /11 Total /40

2 4E5NA/7087/01/PRE/2023[Turn over Answer all questions. 1 Scott is a sole trader. After preparing the accounts f or the year ended 3 0 June 2023, he discovered the following errors. 1 A payment received, $280, from Jen, a credit customer, had been credited to the sales revenue account. 2 A cheque payment, $39, for office expenses, had been recorded as $93. 3 A cheque payment of $826 to Kai Xiang, a credit supplier, had been incorrectly debited to the account of Kai Yu. 4 A credit note of $250 issued to Ian, a credit customer, for defective goods returned, had been omitted from the books. REQUIRED (a) Complete the following table to calculate the adjusted profit after correcting errors 1 to 4. If there is no effect, place a tick (√) in the “No effect” column. Do not write on the shaded boxes. No effect Increase Decrease $ Profit for the year before correction of errors 26 970 Error 1 280 [1] Error 2 54 [1] Error 3 √ [1] Error 4 250 [1] Adjusted profit for the year 26 494 [1] [5] (b) Explain two reasons why a trial balance is prepared at the end of every financial year. 1. To check the arithmetical accuracy in recording i.e. whether the total equals to the total credits in the ledger. [1] 2. To facilitate the preparation of financial statements i.e. the statement of financial performance and the statement of financial position. [1] [2]

3 4E5NA/7087/01/PRE/2023[Turn over (c) Explain the limitation of a balanced trial balance. Errors may still exist in a balanced trial balance when a transaction is not recorded at all [1] OR a transaction is recorded in the wrong account of the same or different accounting element. Any other relevant point. [1] (d) State the two principles of professional ethics that accounta nts are required to adopt.