2022 PLMGS 4E5N POA Prelim P2 - Question Booklet

Name: ___________________________ ( ) Class: _______ Centre Number S Index Number PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 25 August 2022 Additional Materials: Writing paper (4 sheets) 2 hours READ THESE INSTRUCTIONS FIRST Write your name, index number and class on all the work you hand in. Write in dark blue or black pen. You may use an HB pencil for any diagrams or graphs. Do not use paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The businesses described in this question paper are entirely fictitious. The number of marks is given in brackets [ ] at the end of each question or part question. At the end of the examination, submit your answers and the question booklet separately. This document consists of 7 printed pages and 1 blank page. Paya Lebar Methodist Girls’ School (Secondary) Preliminary Examination 2022 Secondary 4 Express / 5 Normal (Academic) Calculator Model: (if applicable)

2 Answer all questions. 1 The following balances were extracted from the books of Tiffani Pte Limited on 31 August 2021. $ Motor vehicles at cost 63 000 Equipment at cost 204 000 Accumulated depreciation: Motor vehicles 22 680 Equipment 73 600 Sales revenue 340 370 Cost of sales 182 400 Sales returns 3 920 Wages and salaries 86 910 Equipment repairs 18 810 Advertisement 19 810 Selling expenses 10 990 Commission received 1 960 Trade receivables 41 400 Trade payables 25 200 Cash at bank (credit balance) 1 220 Allowance for impairment of trade receivables 2 870 Inventory 70 000 10% bank loan repayable 2025 30 000 Interest paid on 10% bank loan 1 380 Share capital 180 000 Retained earnings at 1 September 2020 24 720 Additional information 1 Share capital consists of 150 000 ordinary shares. 2 Advertisement relates to a fourteen-month period ending on 31 October 2021. 3 A sales invoice, $5600, had been completely omitted from the books of account. 4 The allowance for impairment of trade receivables is to be maintained at 4% of trade receivables. 5 Equipment repairs of $8000 had been incorrectly debited to the equipment account. 6 Motor vehicles are to be depreciated at 20% per annum using reducing-balance method. 7 Equipment is depreciated at 10% per annum using the straight-line method. 8 Interest on the bank loan for the year was not fully paid up. 9 The comp