SGSS 4N Prelim P1

1 Answerallquestions. 1 BrandonisacoffeeretailerwhosellsgoodstoZerahTradingoncredit.ThefollowingtransactionsoccurredduringthemonthofMarch2022. 2022Mar1 BalanceowedbyZerahTradingwas$8300. 9 SoldcoffeebeanstoZerahTradingatalistpriceof$5000andgaveatradediscountof5%.Thecostofthebeanswas$2000. 18 Someofthebeanssoldon9Marchatalistpriceof$1000wereofthewrongspecificationsandreturnedtoBrandon. 28 BrandonreceivedachequefromZerahTradingforamountowingon1Marchafterdeducting2%cashdiscount. 31 ThebankinformedBrandonthatthechequedepositedon28Marchhadbeenrejected. REQUIRED (a) PreparetheledgeraccountofZerahTradinginthebooksofBrandon,forthemonthofMarch2022. ZerahTradingaccount [7] [TurnoverSGSS/POAP1/4N/Prelim/2022

2 (b) Suggestonepossiblereasonwhythechequedepositedon28Marchwasrejected. [1] (c) Completethetablebelowbystatingthesourcedocumentsforthetransactions. Date SourceDocument Mar9Mar18Mar28Mar31 [4] [Total:12] [TurnoverSGSS/POAP1/4N/Prelim/2022

3 2 Ramleeisasoleproprietorwhostartedhisfoodtradingbusinesson1March2021withacapitalof$50000inthebusinessbankaccount.Hisfinancialyearendson28February2022. Thefollowingtransactionstookplaceduringthefinancialyear. 1 On10April2021,Ramleetookhomeaprinter,meantforofficeuse,worth$500fromthebusiness. 2 On22June2021,Ramleepaidthebusinessadvertisingexpensesusingapersonalchequeof$8000. 3 On30September2021,Ramleetookcashof$1300fromtheofficeforhispersonaluse. Thebusinessmadeaprofitof$15000fortheyearended28February2022. REQUIRED (a) Nameandexplainonesuitableaccountingtheorytoexplaintherecordingofcapitalanddrawings. [2] (b) Preparethedrawingsaccountfortheyearended28February2022. [3] [TurnoverSGSS/POAP1/4N/Prelim/2022

4 (c) Preparethecapitalaccountfortheyearended28February2022. [5] [Total:10] [TurnoverSGSS/POAP1/4N/Prelim/2022

5 3 LeeConsultancyis in thebusinessofprovidingconsultingservicesforbusinesses.Thefollowingservicefeerevenuewasextractedfromitsbooks. ConsultancyFeeRevenueDateParticulars Dr($) Cr($) Bal($)2021Jul 1 Consultancyfeereceivable10000 10000DrSep28 Cashatbank 35000 25000Cr2022Feb14 Cashatbank 8000 33000CrJun28 Consultancyfeerevenuereceivedinadvance 12000 21000Cr Jun30 Incomesummary 21000 - REQUIRED(a) Describethetransactiononthefollowingdates. (i) 1July2021 (ii) 14February2022 (iii)30June2022 [3] [TurnoverSGSS/POAP1/4N/Prelim/2022

6 (b) Preparethejournalentriestorecordtheclosingofconsultancyfeerevenueaccounton30June2021.Narrationisnotrequired. [2] (c) Statetheeffectoncurrentassets,currentliabilitiesandprofitfortheyearifservicefeerevenuereceivedinadvancewasnotrecordedon30June2021. Effectofnotrecordingservicefeerevenueinadvance(i) Currentassets(ii) Currentliabilities(iii) Profitfortheyear [3] (d) Explaintheaccrualbasisofaccounting. [1] (e) Statetwofeaturesofsoleproprietorship. (1) [1] (2) [1] [Total:11] [TurnoverSGSS/POAP1/4N/Prelim/2022

7 4 TheCeylonTeaTradingfirmsellsflavouredtea.Thebusinesshasthefollowingbalanceson1May2021. $Motorvehicles 83000Accumulateddepreciationofmotorvehicles 9500 Thebusinessboughtanewvanwo