GESS_5NA Prelim P1 2023_ sharing

1 GESS S5NA POA P1 PRELIM 2023 LSY7087/01/A/S/2023[Turn over Answer all questions.1Elliot owns a tailor business which has purchased a new automated display cabinet on wheels on credit from Bright Furnishings for $50 000 on 2 February 2023. The following costs were incurred on the same day:$Installation of the automated cabinet on wheels6 900Annual insurance premium of the automated cabinet1 200Delivery fee for transportation of the cabinet to an exhibition venue to promote the tailor business1 000REQUIRED(a)Calculate the cost of the automated cabinet on wheels. [2](b)Prepare the journal entry to record the transaction on 2 February 2023. Narration is not required. JournalDate2023Debit$Credit$ [2](c)State the accounting theory applied by a business to record revenue and capital expenditure.[1]

The business policy is to provide a full year’s depreciation in the year of purchase and no depreciation is provided in the year of sale. Its financial year ends on 31 May. The original cost of two motor vans purchased as at 1 June 2020 is $100 000 each. On 3 March 2023, the business sold one of the motor vans for $80 000.The business provided the following accumulated depreciation of motor vehicles account on 31 May 2023:Accumulated depreciation of motor vehicles accountDateParticularsDebitCreditBalance2021$$$May 31Depreciation of motor vehicles40 00040 000CrJun 1Balance b/d40 000Cr2022May 31Depreciation of motor vehicles32 00072 000CrJun 1Balance b/d72 000Cr2023Mar 3Sale of non-current assets (e)(i)36 00036 000CrMay 31Depreciation of motor vehicles? (e)(ii)?CrJun 1Balance b/d?CrREQUIRED(d)Calculate the rate of depreciation used to depreciate the motor vehicles. [1](e)Interpret the entries on:(i)3 March 2023 [1](ii)31 May 2023 and state the amount of depreciation on 31 May 2023 [2]

3 GESS S5NA POA P1 PRELIM 2023 LSY7087/01/A/S/2023[Turn over [Total: 9]2

Elizabeth is considering investing in one the businesses in the food catering industry. The two businesses, Good Food Catering Pte Ltd and Delicious Delicacy Pte Ltd, provided the following information from their books for the year ended 30 April 2023: Good Food Catering Pte LtdDelicious Delicacy Pte Ltd$$Net sales revenue880 800720 090Cost of sales660 600500 780Rental expenses80 80050 380Salaries expenses50 50065 200REQUIRED(a)Calculate the profit margin for each business at 30 April 2023. Show your answers to two decimal places. [2] (b)Evaluate the profitability of Good Food Catering Pte Ltd and Delicious Delicacy Pte Ltd for the year ended 30 April 2023. Use the given information and your answer to (a). [5]

5 GESS S5NA POA P1 PRELIM 2023 LSY7087/01/A/S/2023[Turn over (c)On 30 April 2023, Delicious Delicacy Pte Ltd issued additional 200 000 ordinary shares at $1.80 each. In addition, it declared a dividend of $0.05 per share payable in June 2023 based on the profit for the year ended 30 April 2023. Prepare the equity section of the statement of financial position at 30 A