Anderson Sec Prelim 2022 P2 - Qns

Setter: Mdm June Liau O ANDERSON SECONDARY SCHOOL Preliminary Examination 2022 Secondary Five Normal Academic CANDIDATE NAME: CLASS: / INDEX NUMBER: PRINCIPLES OF ACCOUNTS Paper 2 7087/02 26 August 2022 2 hours 0800 – 1000h No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper ask the invigilator for a continuation booklet. Answer all the questions. The number of marks is given in brackets [ ] at the end of each question or part question. 60

2 PRELIM 5NA POA 2022 7087/02 This document consists of 5 printed pages and 1 blank page. Answer all questions. 1 The following balances were extracted from the books of Xin Yi Pte Ltd on 31 March 2022. Dr Cr $ $ Sales revenue 184 470 Sales returns 11 000 Cost of sales 78 050 Trade receivables 108 500 Trade payables 59 510 Issued share capital, 160 000 ordinary shares 160 000 Retained Earnings 36 870 Motor vehicle expense 12 000 Motor vehicles 152 000 Accumulated depreciation for motor vehicles 50 000 Allowance for impairment of trade receivables 5 000 Interest on loan 8 000 Discounts 2 050 3 850 Wages expense 30 800 Bank loan 50 000 Cash at bank 51 200 Rent expense 6 000 Inventory 90 100 549 700 549 700 Additional information: 1 The net realisable value of inventory is $89 000. 2 The payment for wages expense was for 14 months up to 31 May 2022. 3 Depreciation on motor vehicle is at 15% per annum on net book value. 4 During the year, trade receivable of $3 500 became bankrupt. The amount has yet to be written off. 5 A review of the trade receivables at the end of the year found that 5% of trade receivables are estimated to be uncollectible. 6 20 000 shares at $1.00 were issued and paid on 1 February 2022. This was not recorded. 7 A dividend of $0.05 per share was declared on 29 March 2022. The dividend will be paid on 4 April 2022. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 March 2022. [10] (b) Prepare the statement of financial position as at 31 March 2022. [10] (c) State two purposes of having internal controls in a business. [2] [Total: 22]

3 PRELIM 5NA POA 2022 7087/02 2 The following information relates to Farhana’ business as at 30 June 2022. $ Premises 220 000 Trade payables 10 600 Other payables 5 000 Bank overdraft 900 Accrued expenses 400 Current portion of long-term borrowings 5 000 Long term bank loan 130 000 Inventory 18 000 Trade receivables 6 400 Prepaid expenses 500 REQUIRED