PCSS 2022 POA P2

PEICAI SECONDARY SCHOOL SECONDARY FOUR EXPRESS/FIVE NORMAL ACADEMIC PRELIMINARY EXAMINATION 2022 CANDIDATE NAME CLASS REGISTER NUMBER PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 29 August 2022 2 hours No Additional Materials are required. READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper ask the invigilator for a continuation booklet. Answer all questions. The use of an approved calculator is allowed. 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 7 printed pages and 1 blank page. Setter: Mdm Soo Sio Koon

2 1 The following balances were extracted from the books of Toys Paradise Pte Limited, a business that sells action and toy figures, on 31 July 2022. $ Share capital, 20 000 ordinary shares 20 000 Retained earnings 19 000 Fixtures and fittings at cost 35 000 Accumulated depreciation of fixtures and fittings 1 450 Trade receivables 43 000 Allowance for impairment of trade receivables 1 000 Sales revenue 80 000 Inventory 37 000 Cost of sales 26 300 Sales returns 7 650 Trade payables 17 700 8% Bank loan repayable 2030 40 000 Cash at bank (Cr) 7 900 General expenses 10 200 Commission income 3 700 Wages and salaries 16 600 Rent expense 15 000 Additional information 1 Rent expense of $9 000 was paid for 15 months up to 31 October 2022. 2 Commission of $140 was earned but not yet received. 3 Payment to trade supplier of $1 200 has been debited to the cash at bank account and credited to the trade payables account. 4 A review of the trade receivables revealed that 5% of the trade receivables are likely to be uncollectible. 5 Interest on the bank loan was outstanding. The loan was taken out on 1 November 2021. 6 Fixtures and fittings are to be depreciated at 5% per annum using the straight-line method. The fixtures and fittings have a residual value of $1 000. 7 A dividend of $0.10 per share had been declared and will be paid on 5 August 2022. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 July 2022. [8] (b) Prepare the statement of financial position as at 31 July 2022. [12] [Total: 20]

3 2 Top In Tech and TechnoTrends are both traders selling mini portable projectors. The following account balances were extracted from the books of the two businesses as at 31 March 2022: $ $ Top In Tech TechnoTrends Motor vehicles 15 090 16 300 Fixtures and fittings 23 400 26 400 Inventory 17 200 25 600 Cash in hand 10 100 5 400 Accumulated depreciation of motor vehicles 3 500 4 200 Accumulated depreciation of fixtures and fit