Deyi_P1(Ans)_4E5NA Prelim 2022 (sharing)

Deyi Secondary School Principles of Accounts Secondary 4E5NA Prelim 2022 Mark Scheme for Paper 1 Question 1 1(a) [6] Transaction Source Documents Account to be debited Account to be credited (i) Payment of staff salaries through bank’s standing order. Bank statement / Payment voucher [1] Salary expense Cash at bank (ii) Import duty imposed on uniforms from China. Invoice [1] Inventory Trade payable (iii) Shirley, a credit customer returned damaged goods. Credit note [1] Sales returns Trade receivable- Shirley 1m for correct set of double-entry 1(b) [2] (i) owner’s equity will decrease [1] (ii) total assets will decrease [1] 1(c) [2] Total Debits = Total Credits Total Debits = $18 930 + $3 000 + $8 910+ Cash at bank Total Credits = $2 800+$800+$28 640 $30 840 + Cash at bank = $32 240 [1m for working]. Cash at bank = $32 240 – 30 840 = $1 400 [1] OR Assets = Liabilities + Owner’s Equity $18 930 + $3 000 + $8 910+ Cash at bank = $2 800+$800+$28 640 [1m for working]. Cash at bank = $32 240 – 30 840 = $1 400 [1] 1(d) [1] Working: • Prepaid salary expense will be deducted from the salary expense figure for the year. • This will understate the salary expense for the year. • Hence profit for the year will be overstated by $800. [1]

Question 2 2(a) [2] Cost of sale : 6 June = $22 490 Cost of sale for 20 June = $13 120 + $24 920 = $38 040 Total cost of sales for June 2022 = $22 490 [1] + $38 040 [1] = $60 530 2(b) [2] Value of inventory at 30 June 2022= $15 540 [1] + $22 460 [1] = $38 000 2(c) [2] Revised value of inventory at 30 June 2022 = $15 540 [1] + ($18 000) [1] = $33 540 2(d) [2] General Journal Date Particulars Dr $ Cr $ 2022 June 30 Impairment loss on inventory (38 000 – 33 540) 4 460 [1] Inventory 4 460 [1] 2(e) [2] Perpetual inventory system is a system whereby the quantity and availability of inventories are updated on a continuous basis. [1] It provides computerised records for the business to monitor the inventory balances so that the business can maintain just enough inventories to meet customer demand. [1]

Question 3 3(a) [2] Interest expense from 1 Jan 2021 – 30 Sept 2021: Based on outstanding Loan amount = $72 000 (3% x $72000) x 9/12 = $1620 Interest expense from 1 Oct 2021 – 31 Dec 2021; Based on outstanding Loan amount = $54 000 (3% x $54 000) x 3/12 = $405 Total interest expense as at 31 December 2021= $1620 [1] + $405 [1] = $2025 3(b) [1] Non-current liabilities are obligations owed by business that are due to be paid beyond one financial year while current liabilities are obligations due to be paid back within one financial year. [1] 3(c) [3] Geneco Statement of financial position as a 31 December 2021 (extract) $ $ Non-curr