Peirce Sec 7087 POA 4E PRELIM 2022 P2

PEIRCE SECONDARY SCHOOL PRELIMINARY EXAMINATION 2022 SECONDARY FOUR EXPRESS Principles of Accounts 7087/02 23 August 2022 Paper 2 2 hours Additional Materials: Answer booklet INSTRUCTIONS TO CANDIDATES Write your name, class and register number on all the work you hand in. Write in dark blue or black pen. Write your answers and working on the separate answer paper provided. You may use a pencil for rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. The use of an approved calculator is allowed. The businesses described in this question paper are fictitious. Answer all questions. Write your answers in the answer booklet provided. All calculations must be shown adjacent to the answer. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 7 printed pages and 1 blank page. Final Copy by Ms Jasmine Yap [Turn over] Candidate Name ________________________________________ Class Register Number FOR EXAMINER’S USE /60 USE PARENT’S SIGNATURE FOR EXAMINER’S USE

2 1 The following balances were extracted from the books of Mad Hatter Pte Ltd on 31 May 2022. Debit Credit $ $ Office equipment 120 000 Accumulated depreciation on office equipment 18 000 Fixtures and fittings 210 000 Accumulated depreciation on fixtures and fittings 42 000 Retained earnings 34 086 Inventory 5 902 Rental 7 200 Repairs and maintenance 600 General expense 350 Trade receivables & payables 9 080 8 190 Allowance for impairment of trade receivables 1 362 Sales returns 3 460 Share capital, 100 000 ordinary shares 100 000 Cash at bank 1 710 Loan from Monkey Finance 40 000 Cost of sales 212 720 Sales revenue 315 210 Salaries 2 430 Discounts 1 456 420 Commission 2 180 568 178 568 178 Additional information at 31 May 2022 1 Rental of $3 000 was received in advance at year end. 2 Prepaid commission amounted to $1 650 at year end. 3 Fixtures and fittings are to be depreciated at 10% per annum on cost. 4 Office equipment are to be depreciated at 15% per annum on net book value. 5 Alice was declared a bankrupt and was only able to pay the business 10 cents for every dollar of its outstanding debt of $1 200 . On the same day, a cheque was received from Alice.

3 6 One quarter of the loan from Monkey Finance is to be repaid on 30 June 2022. 7 Interest of 1% per annum on loan from Monkey Finance has not been paid yet. 8 A dividend of $0.03 has been declared and will be paid on 17 June 2022. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 May 2022. [10] (b) Prepare the statement of financial position as a