PHSS 2022 POA 4E5N Prelim P1

NAME: ( ) CLASS: TEACHINGGROUP: MARKS /40 PEIHWASECONDARYSCHOOL PRELIMINARYEXAMINATIONS2022 SecondaryFourExpress/ FiveNormalAcademic PrinciplesofAccounts 7087/01 Paper1 13September2022 AdditionalMaterials:- 1hour READTHESEINSTRUCTIONSFIRST 1. Writeyourname,class,teachinggroupandindexnumberonallquestionpapersandanswerscripts. Writeallanswersindarkblueorblackink. Youmayuseasoftpencilforanydiagramsorroughworking. Donotusestaples,paperclips,highlighters,glueorcorrectionfluid. 2. Answerallquestions. 3. Writeallanswersinthequestionbooklet.

2 1 Cassandra is the owner of Jazz Ezz, a business that specialises in Chinese activitysetsfor children. On1July2022, therewere20setscosting$110eachintheshop. 2022Jul 4 Credit purchase of 30 activity sets fromTBTrading with 10%off the list priceof $100each. Jul 9 Returnedthe10activitysetspurchasedon4July2022duetodefects. Jul 15 Credit salesof 20activitysetstoBKindyat $200less5%discount. Jul 21 A fire broke out in the neighbouring shop. All the activity sets were damagedand could no longer be sold. The insurance company agreed to a claim of$600whichwill bepaidout on10August 2022. REQUIRED (a) Preparetheinventoryaccount for July2022. [6] _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ 4. Theuseofanapprovedcalculatorisexpected,whereappropriate. 5. Youareremindedoftheneedforclearpresentationinyouranswers. 6. Thenumberofmarksisgiveninbrackets[ ] attheendofeachquestionorpartquestion. Thisquestionpaperconsistsof9printedpages.

3 _________________________________________________________________________ _________________________________________________________________________ (b) Describehowbusinessesmanageinventories. [3] _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________(c) Suggest one possible problem a business may face if it holds on to too muchinventoryonhand.[1] _________________________________________________________________________ ___________________