XMS 2022 4E5N PRELIMS P2 QN

XINMIN SECONDARY SCHOOL SEKOLAH MENENGAH XINMIN PRELIMINARY EXAMINATION 2022 CANDIDATE NAME CLASS INDEX NUMBER PRINCIPLES OF ACCOUNTS Paper 2 Secondary 4 Express/ 5 Normal Academic Setter: Ms Jaclyn Neo Vetter: Mdm Norhuda Maksum and Mrs May Ng 7087/02 25 August 2022 2 hours Additional materials: Writing paper (5 sheets) 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. You may use an HB pencil for rough working. Do not use staples, paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The businesses mentioned in this question paper are fictitious. Start each question on a separate page. The number of marks is given in the brackets [ ] at the end of each or part question. At the end of the examination, fasten all your work securely together. For Examiner’s Use Q1 / 20 Q2 / 10 Q3 / 13 Q4 / 17 / 60 Parent’s Signature This document consists of 7 printed pages.

2 1 The following balances were extracted from the books of Eat Smarter, a retailer of whole foods, at the end of the financial year on 31 July 2021. $ Capital, 1 August 2020 80,819 Sales revenue 120,800 Sales returns 22,320 Cash at bank 950 Cr Cost of sales 46,600 Commission income 26,000 Trade payables 28,000 Trade receivables 44,400 Allowance for impairment of trade receivables 340 Discount allowed 809 Interest on bank loan 500 Inventory 32,000 4% bank loan taken on 1 August 2018 15,000 Selling and advertising expense 8,860 Rental expense 13,000 Wages and salaries 30,800 Utilities expense 12,520 Motor vehicles at cost 60,000 Accumulated depreciation of motor vehicles 12,000 Equipment at cost 14,200 Accumulated depreciation of equipment 2,100

3 Additional information 1 Legal fees $550 relating to the purchase of a new equipment had been recorded in the selling and advertising expense account. 2 A sales invoice of $1,200 had been completely omitted in the books. 3 Interest expense on the 4% bank loan had not been fully paid up. 4 5 The owner had withdrawn $30 every month from the business bank account to pay for his telephone bill since 1 January 2021. This has been recorded as utilities expense in the books. During the year, a credit customer owing $1,000 was declared bankrupt. The amount owing was to be written off. 6 The allowance for impairment of trade receivables is to be maintained at 5% of trade receivables. 7 Motor vehicles are to be depreciated at 15% per annum using the reducing -balance method. Equipm