2022_MSHS_Prelims_S4_POA_Paper 2_QP

Class/ Index Number / Centre Number/ ‘O’ Level Index Number / Name MARIS STELLA HIGH SCHOOL PRELIMINARY EXAMINATION SECONDARY FOUR PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 24 August 2022 2 hours Additional Materials : Multi-column accounting paper (5 sheets) READ THESE INSTRUCTIONS FIRST Write your class, index number, Centre number, O level index number and name in the spaces at the top of this page. Write in dark blue or black pen. You may use a HB pencil for any diagrams or graphs. Do not use staples, paper clips, glue or correction fluid. Answer all the questions. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. The total number of marks for this paper is 60. For Examiner’s Use This document consists of 7 printed pages. 60

2 Answer all questions. 1 The following balances were extracted from the books of Spencer Pte Ltd on 30 June 2021. $ Issued share capital, 100 000 ordinary shares 140 000 Retained earnings 49 400 7% bank loan repayable 30 June 2028 40 000 Sales revenue 85 800 Sales returns 4 300 Cost of sales 57 700 Office equipment Motor vehicles 80 000 105 000 Accumulated depreciation: Office equipment 5 000 Motor vehicles 17 000 General expenses 3 600 Wages and salaries 11 800 Rent income 6 000 Trade receivables 23 800 Trade payables 17 700 Cash at bank 31 500 Allowance for impairment of trade receivables 1 700 Inventory 44 900 Additional information 1 Wages and salaries , $900 we re prepaid and general expenses, $2 700 were owing. 2 Rent income received during the year was for 15 months ended 30 September 2021. 3 Office equipment is to be depreciated at 15% per annum using the straight -line method. 4 Motor vehicles are to be depreciated at 20% per annum using the reducing- balance method. 5 Interest on the bank loan for the year ended 30 June 2021 had not yet been paid.

3 6 The allowance for impairment of trade rece ivables is to be maintained at 3 % of trade receivables. 7 Dividend of $0.08 per share was declared on 15 June 2021. The dividends would be paid on 31 July 2021. REQUIRED (a) Prepare the statement of financial performance for the year ended 30 June 2021. [10] (b) Prepare the statement of financial position as at 30 June 2021 . [10] [Total: 20]

4 2 On 1 April 20 19, Jackson Enterprise bought two identical motor vehicles costing $38 000 each by cheque. On 30 June 2021 , one of the motor vehicles was sold for $ 23 700 and a cheque was received. The business provides depreciation on motor vehicles at a rate of 20% per annum using the reducing -balance method. Depreciation is not provided in the year of sale. The business financial year ends on 3