Peirce Sec 7087 POA 4E PRELIM 2022 P1

PEIRCE SECONDARY SCHOOL PRELIMINARY EXAMINATION 2022 SECONDARY 4 EXPRESS Principles of Accounts 7087/01 25 August 2022 Paper 1 1 hour INSTRUCTIONS TO CANDIDATES Write your name, class and register number on all the work you hand in. Write in dark blue or black pen on both sides of the paper. 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. Answer all questions on the question paper. The businesses described in this question paper are fictitious. 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 USE /40 USE PARENT’S SIGNATURE

2 1 Samantha intends to start a business to sell homemade cupcakes. She is not trained in accounting and requires an explanation of the following financial terms. REQUIRED (a) Explain one professional ethic an accountant must have to fulfil the stewardship role of accounting. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………….…… [2] (b) State one purpose of using source documents . Support your answer with an appropriate accounting theory. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………. [2] (c) Indicate the basic accounting equation. ……………………………………………………………………………………………………….…… [1] (d) State two purposes of preparing a trial balance. ……………………………………………………………………………………………………………...... ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ………………………………………………………………………………………………………….… [2] (e) State two causes of depreciation. ……………………………………………………………………………………………………………...... ……………………………………………………………………………………………………………. [2] [Total: 9]

3 2 1 Dynamics Durians provided the following information. 1 July 2021 $ Prepaid utilities 1 080 Additional information: 1. The business paid $500 for utilities by cheque during the year. 2. The annual utilities amounted to $1 630. REQUIRED (a) Explain how a business should account for its cost and other expenses using one accounting theory. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ………………………………………………………………………..……….………………………..... [2] (b) Prepare journal entries to account for utilities for