Deyi_P1_4E5NA Prelim 2022 (sharing)

1 1 Ji Jun is a trader who buys and sells factory uniforms on credit. REQUIRED (a) Complete the following table to show the source documents and ledger accounts in which each of the transaction would be recorded. Transaction Source Document Account to be debited Account to be credited (i) Payment of staff salaries through bank’s standing order. (ii) Import duty imposed on uniforms bought from China. (iii) Shirley, a credit customer returned damaged goods. [6] (b) Analyse the effect of transaction (i) from Part 1(a) on the following accounting elements of the business. (i) owner’s equity ……………………………………..……………………………………………………..……….….…....[1] (ii) total assets ………………………………………….………………………………………………………….…...…..[1]

2 The following balances were extracted from the books of Ji Jun’s business on 30 April 2022. $ Motor vehicles 18 930 Inventory 3 000 Trade receivables 8 910 Trade payables 2 800 Cash at bank ? Salary expense payable 800 Capital 28 640 REQUIRED (c) Calculate the value of cash at bank at 30 April 2022. All workings must be shown clearly. ………………………………………………………………………………………………….………….….. ……………………………………..……………………………………………………..……….….…...….. ………………………………………………………………………………………………….………….….. ……………………………………..……………………………………………………..……….….…...….. ………………………………………….………………………………………………………….…...…..[2] (d) Explain the effect on profit if the salary expense payable was wrongly recorded as prepaid salary expense for the year ended 30 April 2022. ………………………………………………………………………………………………….………….….. ……………………………………..……………………………………………………..……….….…...….. ………………………………………….………………………………………………………….…...…..[1] [Total : 11] [Turn over

3 2 Kumin Trading has the following information about its inventory of office chairs. On 1 June 2022, the inventory valuation was $22 490 for 80 office chairs. During the financial year, the business made the following purchases of office chairs on credit: Purchases on credit Quantity $ 2022 Jun 4 40 13 120 12 80 24 920 18 50 15 540 25 80 22 460 Additional information: 1 The business uses the FIFO system for inventory management. 2 The business sold some office chairs on the following dates: June 6 Sold 80 units for $20 000 cash. June 20 Sold 120 units for $90 000 cash REQUIRED (a) Calculate the total cost of sales for the month of June 2022. ………………………………………………………………………………………………….………….….. ……………………………………..……………………………………………………..……….….…...….. ………………………………………………………………………………………………….………….….. ……………………………………..……………………………………………………..……….….…...….. ………………………………………….………………………………………………………….…...…..[2] (b) Calculate the value of inventory at 30 June 2022.