CHIJ STC POA 4E5N Prelim 2023 Paper 2 (7087)

____________________________________________________________________________ PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 25 August 2023 2 hours Additional Materials: Writing paper (4 sheets) ____________________________________________________________________________ READ THESE INSTRUCTIONS FIRST Write your name, class and index number clearly on the writing papers. Write in dark blue or black ink. Write your answers on the writing papers. Use both sides of the paper. Please leave two blank lines in between your answers to each question. Write the number of the question you are responding to in the first margin. All work must be handed in. Do not use paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. ____________________________________________________________________________ This document consists of 6 printed pages. CHIJ ST. THERESA’S CONVENT PRELIMINARY EXAMINATION 2023 SECONDARY 4 EXPRESS / 5 NORMAL ACADEMIC

2 CHIJ ST. THERESA’S CONVENT SECONDARY FOUR EXPRESS / FIVE NORMAL ACADEMIC 2023 PRELIMINARY EXAMINATION PRINCIPLES OF ACCOUNTS PAPER 2 Section A Answer all questions. 1 The following balances were extracted from Heidi Pte Ltd on 31 July 2023. Debit Credit $ $ Issued share capital, 25 000 shares 50 000 Retained earnings, 1 August 2022 24 020 Bank loan 20 000 Motor vehicles 55 300 Fixtures and fittings 4 800 Accumulated depreciation: Motor vehicles 11 060 Fixtures and fittings 960 Sales revenue 125 100 Sales returns 535 Cost of sales 52 480 Inventory 6 900 Trade receivables 17 100 Trade payables 5 980 Salaries 28 980 Rental expense 4 550 General expenses 10 890 Commission income 280 Allowance for impairment of trade receivables 470 Discount allowed 830 Discount received 540 Cash at bank 56 045 238 410 238 410 The following information is available. 1 As at 31 July 2023, (i) Salaries of $900 for the month of July 2023 were still outstanding. (ii) Rental expense included $1200 which has been paid for three months’ rental ending 30 September 2023. (iii) Commission income receivable was $180. 2 $4000 of the bank loan is due on 31 January 2024. 3 A debt of $ 350 owed by a customer was found to be irrecoverable. The company decided to write this amount off.

3 CHIJ ST. THERESA’S CONVENT SECONDARY FOUR EXPRESS / FIVE NORMAL ACADEMIC 2023 PRELIMINARY EXAMINATION PRINCIPLES OF ACCOUNTS PAPER 2 4 A review of the trade receivables listing showed that 4% of the trade receivables may be irrecoverable. 5 Depreciation policy: (i) Motor vehicles are to be depreciated at 20% per annum on the net book value. (ii) Fixtures and fittings are to be depreciated equally over ten years, without pr