2022 CTSS 4N Prelim P1 QN

Name: _________________________________RegisterNumber: ______ Class: ______ Clementi TownSecondarySchoolPreliminaryExaminations2022Secondary4Normal (Academic) PRINCIPLESOFACCOUNTS 7086/01Paper 1 28July20221hour CandidatesanswerontheQuestionPaper.NoAdditionalMaterialsarerequired. CLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOLCLEMENTITOWNSECONDARYSCHOOL READTHESEINSTRUCTIONSFIRST Writeyourname,registernumberandclassonall theworkyouhandin.Writeindarkblueorblackpen.YoumayuseanHBpencil foranyroughworking.Donotusestaples,paperclips,glueorcorrectionfluid.Theuseofapprovedcalculatorisallowed.DONOTWRITEONANYBARCODE. Answer allquestions. Thebusinessdescribedinthisquestionpaperareentirelyfictious. Thenumberofmarksisgiveninbrackets[ ]attheendofeachquestionorpartquestion.

2 _______________________________________________________________________________________ Thisquestionpaperconsistsof12printedpages,includingthiscoverpage.

3 Answerallquestions. 1 Jacky,ownerofJumpyJackets,providedthebusinesscashatbankaccountforMay2022. CashatbankaccountDate2022 Particulars ChequeNumber Debit$ Credit$ Balance$May 1 Balanceb/d 8110 Dr4 StyleWear 1122 2385 5725 Dr9 SocksnSocks 1123 5600 125 Dr16 NikyShoes 2820 2945 Dr22 Utilitiesexpense 1124 600 2345 Dr27 Dancewalker 1200 3545 Dr30 HealthyFeet 590 4135 Dr ThefollowingbankstatementforMay2022wasreceivedon5June2022.Thebalancesinthecashatbankaccountandthebankstatementdidnotagree. BankstatementDate Particulars Withdrawal Deposit Balance2022 $ $ $May 1 Balanceb/d 9495Cr1 Chequeno.1121 1385 8110Cr10 Chequeno.1122 2385 5725Cr18 Chequedeposit 2820 8545Cr20 Directpayment–Salaries 2000 6545Cr24 Directtransfer–PremiumOutlet 1580 8125Cr 25 Chequeno.1124 600 7525Cr28 Chequedeposit 1200 8725Cr30 Interest 70 8655Cr REQUIRED (a) PreparetheadjustedcashatbankaccountforMay2022. [5]

4 (b) Preparethebankreconciliationstatementasat31May2022. [3] (c) Explainonepurposeofinternal controlsinabusiness. [1] [Total: 9]

5 2 Smart Enterprise started business on 1 August 2020 and purchased an office equipmentcosting $50 000 on the same day. The business policy is to provide a full year’sdepreciationintheyearofpurchase.Itsfinancial yearendson31July.Thefollowingaccumulateddepreciationofofficeequipmentaccountwasprovided. AccumulateddepreciationofofficeequipmentaccountDR$ CR$ Balance$2021Jul 31 Depreciationofofficeequipment 5000 5000CrAug1 Balanceb/d 5000Cr2022Jul 31 Depreciationofofficeequipment 4500 9500CrAug1 Balanceb/d 9500Cr REQUIRED (a) StatethemethodusedbySmartEnterprisetodepreciatetheofficeequipment. [1] (b) Calculate the rate of depreciation used by Smart Enterprise to depreciate the officeequipment. [1] (c) Statethetwocausesofdepreciation. [2]

6 (d) Prepare an extract of the statement of financial position asat 31July2022showingonlythenon-currentassetssection. [3] (e) Explaintheprudencetheory. [2] [Total: 9]

7 3 Sammystartedatradingbusiness. Duringthefirstyearended31December2021,thefollowingtransactionstookplace. 1. Rental of $9000waspaidbychequeon1May2021. $3000isoutstandingforrental asat31December2021. 2. Two cheques of $5 000 each were received for commission on 1 June 2021 and 30November 2021. Commission income earned for the year ended 31 December 2021amountedto$8800.REQUIRED (a) Statetheamountstobeincludedinthestatementoffinancial performancefortheyearended31December2021forthefollowingitems. Showworkingswherenecessary. (i) Rental expense [1] (ii) Commissionincome [1] (b) Preparetheadjustingjournal entriesat31December2021forthefollowingitems. (i) Rental expense JournalDate Particulars DR CR2021 $ $Dec31 [2](ii) Commissionincome JournalDate Particulars DR CR

8 2021 $ $Dec31 [2] (c) Statetheeffectof notadjustingforthecommissionincomein(b)(ii)ontheprofitfortheperiod: [1] (d) Explaintheaccrual basisofaccounting. [2] [Total: 9]

9 4 Muthuoperatesasaplantsellerwithafinancial yearendof31December.Muthuprovidedthefollowinginformationforhisbusiness.2021Jan10 Muthutookcash,$500forhisownuse.Jun20 Muthutookgoods,$100forhisownuse.Dec30 Muthuusedabusinesscheque,$400topayforhishomerepairsexpenses. REQUIRED (a) Explainthemeaningofdrawings. [1] (b) Preparethedrawingsaccount for theyearended31December2021,showingtheclosingtocapital account. Drawingsaccount [4]

10 (c) StateandexplaintheaccountingtheoryappliedwhenrecordingdrawingsforMuthu. [3] (d) Statetheeffectofowner’sdrawingsonowner’sequity. [1] On1January2021,thecapital accounthadabalanceof$25000. On25August2021,Muthucontributedfixturesandfittings,$2500intothebusiness. For the year ended 31 December 2021, thebusiness’ total expensesexceededtotal incomeby$6500. REQUIRED (e) Preparethecapital accountfortheyearended31December2021. Capital account [4] [Total: 13] ENDOFPAPER