Anderson Sec Prelim 2022 P1 - 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 1 Candidates answer on the Question Paper. 7087/01 25 August 2022 1 hour 1100 – 1200h No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your name, class and index number on all the work you hand in. Write in dark blue or black pen on both sides of the paper. Do not use staples, paper clips, highlighters, glue or correction fluid/tape. The use of an approved calculator is allowed. Answer all the questions. Where layouts are to be completed, you may not need all the lines for your answers. The businesses described in this question paper are entirely fictitious. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 10 printed pages. 40

2 PRELIM 5NA POA 2022 7087/01 Answer all questions. 1 On 1 October 2020, Alexander Pte Ltd provided the following balances. $ Trade receivables 34 500 Allowance for impairment of trade receivables account 3 450 The following transactions took place during the financial year ended 30 September 2021. 1 On 10 August 2021 , Jacky Trading, a credit customer who owed $ 3 500, was declared bankrupt and a final payment of 20% was received by cheque. The remainder was written off. 2 On 30 September 2021, the trade receivables balance was $ 22 700. Alexander Pte Ltd maintains an allowance for impairment of trade receivables at 10% of the trade receivables balance at the end of every financial year. REQUIRED (a) Explain the following terms: (i) trade receivables [1] (ii) allowance for impairment of trade receivables [1] (b) Name and explain the accounting theory applied when recording allowance for impairment of trade receivables. [2]

3 PRELIM 5NA POA 2022 7087/01 (c) Prepare the journal entries to record the transaction on 10 August 2021. Narrations are not required. [3] Journal Date Particulars Dr $ Cr $ (d) Prepare the journal entries to record the change in allowance for impairment of trade receivables on 30 September 2021. Narrations are not required. [2] Journal Date Particulars Dr $ Cr $ [Total: 9]

4 PRELIM 5NA POA 2022 7087/01 2 Gabriel owns a business providing wellness therapy services. The following information was provided: 1. On 1 June 2021, service fee re