AISS 4E POA Prelims P1 with ANS

AISS PRELIMS 7087/01/2022 AHMAD IBRAHIM SECONDARY SCHOOL GCE O-LEVEL PRELIMINARY EXAMINATION 2022 SECONDARY 4 EXPRESS & 5 NORMAL (ACADEMIC) Name: Class: Register No.: PRINCIPLES OF ACCOUNTS 7087 / 01 Paper 1 Candidates answer on Question Paper. No Additional Materials are required. 30 August 2022 1 hour READ THESE INSTRUCTIONS FIRST Write your 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 staples, paper clips, highlighters, glue or correction fluid. Question Marks 1 2 3 Total 40 Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question.

2 AISS PRELIM 7087/01/2022 This paper consists of 8 printed pages. Answer all questions. 1 Stanley owns a business selling books. The business has the following balances on 1 July 2021. $ Prepaid advertising expense 700 Commission income receivable 580 Additional information (i) Business paid $3 000 for advertising by cash and received $5 000 cheque for commission income. (ii) Monthly advertising expense amounts to $500. (iii) As at 30 June 2022, there is a commission income received in advance of $390. REQUIRED (a) Prepare the journal entries for advertising expense for the year ended 30 June 2022. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. ……………………………………………………………………………………………………….. …………………………………………………………………………………………………..…[4] (b) Calculate the amount of commission earned for the year. ………………………………………………………………………………………………………… ……………………………………………………………………………………….……………….. ……………………………………………………………………………………............................ ……………………………………………………………………………………........................[2] [Turn over

3 AISS PRELIM 7087/01/2022[Turn over (c) Prepare the extract of the statement of financial position as at 30 June 2022. ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ……………………………………………………………………………………............................ ……………………………………………………………………………………............................ ……………………………………………………………………………………........................[2] (d) State the effect on profit and current asset if the commission income received in advance is not adjusted at the end of the year.