Deyi_P2(ans)_4E5NA Prelim 2022 (sharing)

Deyi Secondary School Principles of Accounts Secondary 4E5NA Prelim Exam 2022 Mark Scheme : Paper 2 Question 1 1(a) [10] Karen Tours Statement of financial performance for the year ended 31 March 2022 $ $ Service fee revenue 55 140 [1] Other income: Commission income ($3 000 - $600) 2 400 [1] 57 540 Less: Other expenses Depreciation of office equipment 19 500 [1] Depreciation of motor vehicles 15 900 [1] Interest expense ($5 000 + $4 500) 9 500 [1] Wages and salaries ($2 400 + $9 000) 11 400 [1] Rent expense (48 000 - $9 600) 38 400 [1] Reversal [1] of impairment loss on trade receivables (1 310) [1] General expense 1 200 [1] 94 590 Loss for the year (37 050)

1b. [10] Karen Tours Statement of financial position as at 31 March 2022 $ Cost $ Accumulated Depreciation $ Net Book Value Assets Non-current assets Office equipment 195 000 79 500 (60 000 + 19 500) 115 500 [1] Motor vehicles 190 000 99 900 (84 000 + 15 900) 90 100 [1] 205 600 Current assets Trade receivables ($20 700 - $800) 19 900 Less: Allowance for impairment of trade receivables ($4 100 - $800 - $1 310) (1 990) 17 910 [1] Prepaid rent expense 9 600 [1] Cash in hand 3 200 30 710 Total Assets 236 310 Equity and liabilities Shareholder’s equity Share capital, 100 000 ordinary shares 100 000 Retained earnings ($53 160 -$3 000 – 37 050) 13 110 [1] 113 110 Non-current liabilities Long-term borrowings (95 000 – 19 000) 76 000 [1] Current liabilities Trade payables 19 100 Commission income received in advance 600 [1] Interest expense payable 4 500 [1] Dividend payable 3 000 [1] Bank overdraft ($8 000 - $9 000) 1 000 [1] Current portion of long-term borrowings 19 000 47 200 Total equity and liabilities 236 310

Question 2 2(a) [5] Cash at bank account Date Particulars Dr $ Cr $ Balance $ 2022 Apr 30 Balance b/d 10 006 Cr Trade payable Sammy (correction of error) 18 [1] 9 988 Cr Insurance expense 105 [1] 10 093 Cr Trade receivable- Gilbert Retailer (dishonoured cheque) 1 776 [1] 11 869 Cr Trade receivable-Cliff Success 1 776 [1] 10 093 Cr May 1 Balance b/d 10 093 Cr 2(b) [4] Marcus Trading Bank Reconciliation Statement as at 30 April 2022 $ $ Balance as per bank statement (12 731) [1] Add: Deposit in transit Trade receivable -Nic & Tom Trading 7 780 [1] (4 951) Less: Cheques not yet presented Repair expense 672 [1] Salaries 4 470 [1] 5 142 Adjusted balance as per cash at bank account (10 093) 2(c) [1] Adjusted profit = $9 320 - $105 = $9 215 [1]

2(d) [1] On 1 May 2021, Marcus Trading recorded a reverse entry for insurance expense paid but not yet incurred last year. The amount will be add