JYSS 4E5N POA PRELIM 2022 P2

This document consists of 7 printed pages and 1 blank page. [Turn over p JUNYUAN SECONDARY SCHOOL PRELIMINARY EXAMINATION 2022 SECONDARY FOUR EXPRESS/ FIVE NORMAL ACADEMIC CANDIDATE NAME CLASS INDEX NUMBER PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 25 August 2022 2 hours Additional Materials: Answer booklet READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question.

2 7087/02/4E5N/PRELIM/2022 Answer all questions. 1 Stephen operates an accounting business. The following balances were extracted from the books on 31 August 2022. $ Motor vehicles at cost 75 000 Equipment at cost 250 000 Accumulated depreciation of motor vehicles 14 250 Accumulated depreciation of equipment 125 000 Rent expense 44 000 Wages 99 000 Cash at bank (Overdrawn) 2 200 Trade receivables 48 600 Accounting fee revenue 246 752 Allowance for impairment of trade receivables 250 Utilities paid 5 141 Discount received 690 3% Bank loan 30 000 Interest on loan 500 Capital 103 099 Additional information 1 Utilities paid included $360 which were Stephen’s own house utilities. 2 Wages, $1 900, was prepaid and rent expense, $4 000, was payable. 3 Motor vehicles are to be depreciated at 10% per annum on net book value. Equipment are to be depreciated at 25% per annum on cost. 4 Numez Limited, who owed $1 800, ceased business. A cheque of $800 was received and the remaining amount was written off. The entire transaction was not recorded. 5 The allowance for impairment of trade receivables is to be maintained at 5% of trade receivables. 6 The bank loan was taken up on 1 January 2022 and is to be repaid equally over five years. 7 Interest on loan for the year ended 31 August 2022 had not been fully paid.

3 7087/02/4E5N/PRELIM/2022 [Turn over REQUIRED (a) Prepare the statement of financial performance for the year ended 31 August 2022. [9] (b) Prepare the statement of financial position as at 31 August 2022. [11] [Total: 20]

4 7087/02/4E5N/PRELIM/2022 2 Rich Bank is considering to approve one of the two loans requested by two similar businesses in the technology industry. The following is extracted from the statements of financial position of two businesses as at 31 March 2022. Ace Technology Best Global $ $ Motor vehicles 128 000 65 000 Equipment 27 000 8 000 Inventory 59 500 16 200 Trade receivables 20 780 18 800 Bank overdraft 1 500 - Cash at bank - 700 Prepaid rent expense 900 2 600 Long term borrowings 50 000 40 000 Curre