AISS 4E POA Prelims P2 with ANS

AISS PRELIMS 7087/02/2022 AHMAD IBRAHIM SECONDARY SCHOOL GCE O-LEVEL PRELIMINARY EXAMINATION 2022 SECONDARY 4 EXPRESS & 5 NORMAL (ACADEMIC) Name: Class: Register No.: PRINCIPLES OF ACCOUNTS 7087 / 02 Paper 2 25 August 2022 2 hours Additional Materials: Writing paper READ THESE INSTRUCTIONS FIRST Write your name, class and index number on all the work you hand in. Write in dark blue or black pen. You may use an HB pencil for any rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The business described in this question paper are fictitious. Start each question on a separate page. All calculations must be shown adjacent to the answer. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. This paper consists of 6 printed pages.

2 AISS PRELIMS 7087/02/2022 [Turn over Answer all questions. 1 The following balances were extracted from the books of Nice Brew Ltd on 31 December 2021. $ Fixtures and fittings at cost 42 000 Motor vehicles at cost 98 000 Accumulated depreciation: Fixtures and fittings 12 600 Motor vehicles 18 620 Sales revenue 368 000 Sales returns 10 050 Cost of sales 158 600 Wages and salaries 90 700 Insurance expense 11 160 Rent income 2 180 Trade receivables 32 900 Trade payables 27 900 Cash at bank 85 830 Allowance for impairment of trade receivables 4 900 Inventory 93 710 Share capital, 100 000 ordinary shares 100 000 Retained earnings,1 January 2021 11 000 5% Bank loan 80 000 Interest expense 2 250 Additional information 1) Insurance expense was paid for eighteen months up to 30 June 2022. 2) Rent income of $620 was earned but not yet collected. 3) A credit note of $1 340 received from a credit supplier had been omitted from the books. 4) Interest expense was not fully paid up yet. 5) One-fifth of the long-term loan is due for repayment on 30 June 2022. 6) Fixtures and fittings is depreciated at a rate of 15% per annum on cost. Motor vehicles are depreciated at a rate of 10% per annum on net book value. 7) A trade receivable who owed $1 600 was declared bankrupt. This has not been recorded in the books. 8) A review of the trade receivables indicated that 8% of the balance is likely to become uncollectible. 9) The company declared a dividend of $0.12 per share. The dividend will be paid on 10 January 2022. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 December 2021. [7] (b) Prepare the statement of financial positi