4E Damai PRELIMS 2022 P2 - Solutions

Secondary 4 Express Preliminary Examinations 2022 – Mark Scheme and Solutions for Paper 2 1 1a) White House Pte Ltd [0.5] Statement of financial performance for the year ended 31 October 2021 [0.5] $ $ Sales revenue $90,000-(96%x$3,000) [0.5] 87,120 Less: Sales returns (4,000) Net sales revenue 83,120 Less: Cost of sales (22,000) Gross profit 61,120 Add: Other income Rent income ($11,000-$5,00) [0.5] 10,500 [0.5] Commission income 700 [0.5] Total other income 11,200 Total income 72,320 [0.5] Less: Other expenses General expenses $2,000-(2/5x$150) [0.5] 1,940 [0.5] Salaries ($80,900+$3,300) [0.5] 84,200 [0.5] Loan interest expense 1,800 [0.5] Impairment loss on inventory (50%x$7,000) [0.5] 3,500 [0.5] Impairment loss on trade receivables (reversal) ($12,000x5%)- (5,000-2,000) [0.5] (2400) [0.5] Depreciation of motor vehicles ($55,000-$11,000)x10% [0.5] 4,400 [0.5] Depreciation of fixtures and fittings ($12,000/5 years) [0.5] 2,400 [0.5] Total other expenses (95,840) Loss for the year (23,520)

Secondary 4 Express Preliminary Examinations 2022 – Mark Scheme and Solutions for Paper 2 2 1b) White House Pte Ltd Statement of financial position as at 31 October 2021 $ $ $ Assets Cost Accumulated Depreciation Net Book Value Non-current assets Motor vehicles 55,000 (15,400) (11,000+4,400) 39,600 Fixtures and fittings 12,000 (4,400) (2,000+2,400) 7,600 Land 140,000 - 140,000 Total non-current assets 207,000 (19,800) 187,200 [1] Current assets Inventory ($28,670-$7,000) [0.5] 21,670 Trade receivables ($14,000-$2,000) [0.5] 12,000 Less: Allowance for impairment of trade receivables ($12,000x5%) [0.5] (600) Net trade receivables 11,400 [0.5] Cash at bank ($14,000+$50,000) [0.5] 64,000 Prepaid general expense (2/5x$150) [0.5] 60 Commission income receivable 700 Insurance claim receivable (50%x$7,000) [0.5] 3,500 Total current assets 101,330 Total assets 288,530 Equity and Liabilities Shareholders’ equity [0.5] Share capital, 200,000 ordinary shares [0.5] 200,000 Retained earnings ($36,070-$23,520 [0.5]- ($0.05x200,000 shares)) [0.5] 2,550 Total equity 202,550 Non-current liabilities Long-term borrowings ($60,000x5/6)) 50,000 [0.5] Total non-current liabilities 50,000 Current liabilities Current portion of long-term borrowings($60,000x1/6) 10,000 [0.5] Salaries payable 3,300 [0.5] Rent income received in advance 500 [0.5] Loan interest expense payable 1,800 [0.5] Dividends payable ($0.05x200,000) 10,000 [0.5] Trade payables ($7,500+(96%x$3,000)) [0.5] 10,380 Total current liabilities 35,980 Total equity and liabilities 288,530

Secondary 4 Express Preliminary Examinations 2022 – Mark Scheme and Solutions for Paper 2 3 2a) Lois Journal Date Particulars Debit Credit 2021 $ $ Jan 1 Rent income 1,200 Rent income receivable [1] 1,200 Dec 31 Cash at bank 19,000 Ren