ACSBR 2022 4E POA Prelims P1

Anglo-ChineseSchool (Barker Road) Answer all questions.1 Thompyhasabusinesswhosefinancial year endson31October.On1November 2021thebalanceonthecapital account was$26900.Duringtheyear thefollowingtookplace.2021Dec15 Cashdrawings$3602022Jan22 GoodstakenbyThompyfor ownuse$324Mar 30 Thompybrought intothebusinessaprivatemotor vehiclevaluedat $4900Aug9 Drawingsbycheque$905 Profit for theyear ended31October 2022was$6700.REQUIRED(a) Prepare Thompy’s drawings account for the year ended 31 October 2022. Close offtheaccount byatransfer onthat date. Drawingsaccount [5] (b) Name and explain the accounting theory which is applied to the treatment ofdrawings. PreliminaryExamination20222Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1

Anglo-ChineseSchool (Barker Road) [2](c) Statetheeffect drawingswill haveontheprofit for theyear. [1](d) Statetwoadvantagesof beingasoletrader. 1 2 [2](e) Statetwoadvantagesof beingalimitedcompany. 1 2 [2][Total: 12] 2 Jiaxin runs a trading business. Its financial year ends on 31 August every year. Thebusiness trial balance as at 31 August 2021 is balanced. However it has since beendiscovered that a debit note, $671, sent to Aishah had been recorded in the books as$617. REQUIRED (a) Explainwhyabusinesspreparesatrial balanceat theendof thefinancial year. PreliminaryExamination20223Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1

Anglo-ChineseSchool (Barker Road) [2] (b) Explainthelimitationof atrial balance. [1] (c) Statetheamount andeffect of thedebit noteerror onJiaxin’sbusinessprofit for theyear ended31August 2020. [2] (d) Nameanddefineoneethical principle. Name Definition [2] (e) Nametheaccountingtheorywhichmust beusedwhenit isassumedthat abusiness PreliminaryExamination20224Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1

Anglo-ChineseSchool (Barker Road) will continuetooperatefor theforeseeablefuture. [1][Total :8] 3 Godin runs a retail business with a financial year end of 31 July. The following ledgeraccount hasbeenpreparedat 31July2022. Saleof OfficeEquipment Date Particulars Debit Credit Balance2022 $ $ $July31 Equipment 26000 26000DrAccumulateddepreciationof equipment 11712 14288DrOther receivables–DJEquipment 10800 3488Dr Incomesummary 3488 – REQUIRED (a) Interpret eachof theentriesinthesaleof equipment account. i. Equipment [1] ii. Accumulateddepreciationof equipment PreliminaryExamination20225Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1

Anglo-ChineseSchool (Barker Road) [1] iii. Other receivables–DJEquipment [1] iv. Incomesummary [1] During the year Godin had extended his shop premises at a cost of $18 500, whichincluded $1500 for repairs totheexistingshoppremises. Hehadincludedthetotal costinthebusiness’sstatement of financial performance. REQUIRED (b) Statetheeffect andamount of includingthecost of theshopextensioninthestatement of financial performanceonthefollowing: i. Profit for theyear PreliminaryExamination20226Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1

Anglo-ChineseSchool (Barker Road) [2] ii. Non-current assets [2][Total: 8]4 Enxin runs a business supplying electrical goods. Thefollowinginformationisavailablefor themonthof September 2021. Therewasnoopeninginventory. Sep2 Purchasedgoodsoncredit fromGwen, $5470010 Soldgoodscosting$28000toPhilippeoncredit for $4980022 Purchasedgoodsbycheque, $2100029 Soldgoodsfor cash, $52000. Thesegoodscost $25600 REQUIRED (a) Preparethefollowingledger accountsfor themonthof September 2021. i. inventoryaccount [2] ii. salesrevenueaccount PreliminaryExamination20227Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1

Anglo-ChineseSchool (Barker Road) [2] (b) Name and explain one accounting theory that is applied to valuation of inventorywhenthevalueof inventoryfallsbelowitscost. Name Explanation [3]Cem runs a similar business. The rate of trade receivables turnover for two years areshownfor bothbusinesses. EnXin Cem2020 2021 2020 202110.27times 12.41times 7.35times 9.81times REQUIRED (c) Evaluatetherateof tradereceivablesturnover for bothbusinessesfor bothyears. PreliminaryExamination20228Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1

Anglo-ChineseSchool (Barker Road) [5][Total: 12]Endof Paper PreliminaryExamination20229Secondary4Express/ 5Normal (Academic) Principlesof Accounts7087Paper 1