JSS 2022 4E_GE 2_P1 with ANS

7087/01/GE2/22 O JURONG SECONDARY SCHOOL 2022 GRADUATION EXAMINATION 2 SECONDARY 4 EXPRESS SECONDARY 5 NORMAL ACADEMIC CANDIDATE NAME CLASS INDEX NUMBER PRINCIPLES OF ACCOUNTS Paper 1 7087/01 17 Aug 2022 1 hour Candidates answer on the Question Paper. No Additional materials are required READ THESE INSTRUCTIONS FIRST Write your class, index number and name 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 any rough working. Do not use staples, paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The number of marks given in the brackets [ ] at the end of each question or part question. The total marks for this paper is 40. This document consists of 8 printed pages [Turn over]

2 7087/01/GE2/22 Answer all questions 1. The trial balance of Alena’s business balanced on 31 January 2022. However, the following errors have now been discovered: 1 Credit note of $300 issued to customer Andrea has omitted from the books. 2 Payment of modification of computer, worth $5 500, to enhance its operating capacity has been debited as cash at bank and credited office equipment. 3 Repayment of bank loan $4 000 has been recorded as $3 000. REQUIRED (a) Prepare the journal entries to correct above errors. Narrations are not required. [6] (b) State the effect of error (1) on the profit for the year. [1] (c) State one purpose of credit note and invoice. credit note invoice [2] (d) Explain the purpose of source document with an accounting theory. [2] [Total: 11]

3 7087/01/GE2/22 2. The following information is obtained from Alvin Gaming Console for the year ended 31 March 2022. Units (Gaming console) Value ($) Sales revenue for the year ended 31 March 2022 32 5 760 Inventory as at 31 March 2021 20 2 000 Operating expenses - 480 Additional information: 1 Summary of invoices for gaming console purchases. Date Quantity $ 2021 1 April 5 500 28 June 4 400 31 Dec 3 300 2022 14 Feb 3 300 2 Business uses FIFO (First-in-first-out) method of inventory valuation. REQUIRED (a) Calculate the cost of sales for the year ended 31 March 2022. [3] (b) Calculate the profit or loss for the year ended 31 March 2022. [3] [Turn over]

4 7087/01/GE2/22 Profit margin for the year ended 31 March 2021 was 30%. (c) Evaluate the profit margin of the business for the 2 years ended 31 March 2021 and 2022. Show your workings clearly and your answer to two decimal places. [3] (d) State how inventory is valued on 31 March 202