2022 PLMGS 4E5NA POA Prelim Paper 1 - Question Booklet

Name: ___________________________ ( ) Class: _______ Centre Number S Index Number PRINCIPLES OF ACCOUNTS 7087/01 Paper 1 26 August 2022 Candidates answer on the Question Paper. 1 hour No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your centre number, name, index number and class in the spaces at the top of this page. 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. This document consists of 11 printed pages and 1 blank pages. Paya Lebar Methodist Girls’ School (Secondary) Preliminary Examination 2022 Secondary 4 Express / 5 Normal (Academic) Calculator Model: (if applicable) For Examiner’s Use 40

2 PLEASE TURN OVER FOR QUESTION 1

3 [Turn over Answer all questions. 1 Glenys Shoes Pte Ltd’s financial year ends on 31 July. Inventory turnover rates for two years for Glenys Shoes Pte Ltd and Didier Solescape Pte Ltd, a similar business, are shown below. Glenys Shoes Pte Ltd Didier Solescape Pte Ltd 2021 2022 2021 2022 21.15 times 27.4 times 40.6 times 41.7 times REQUIRED (a) Discuss the rate of inventory turnover for both businesses for both years. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. ………………………………………………………………………………………………………. …………………………………………………………………………………………………... [4] (b) Suggest one way in which Glenys Shoes Pte Ltd could improve its rate of inventory turnover. ………………………………………………………………………………………………………. ………………………………………………………………………………………………….. [1] [Total: 5]

4 2 Mitra Runway Pte Ltd is a clothing retailer. The following is an extract from the company’s statement of financial position as at 30 June 2021. $ Share capital, 40 000 ordinary shares 60 000 Retained earnings 35 000 REQUIRED (a) State the mea