4E5N CHIJ Katong Prelim 2022 P2 QP

CHIJ KATONG CONVENT PRELIMINARY EXAMINATION 2022 SECONDARY 4 EXPRESS / 5 NORMAL (ACADEMIC) PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 August/September 2022 2 hours Additional Materials: Writing paper (7 sheets) READ THESE INSTRUCTIONS FIRST Write your class, index number and name on all the work you hand in. Write in dark blue or black pen on both sides of the paper. Do all your rough work in pen. Do not use staples, paper clips, glue or correction fluid / tape. The use of an approved calculator is allowed. Answer all questions. The businesses described in this question paper are entirely 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 question paper consists of 6 printed pages. [Turn over

2 CHIJ Katong Convent Preliminary Examination 2022 Principles of Accounts Paper 2 Sec 4E/5N Answer all questions 1 The following balances were extracted from the books of Mario Limited on 31 March 2022. $ Share capital, 80 000 ordinary shares 96 000 Retained earnings, 1 April 2021 3 900 Trade payables 5 340 4% Bank loan (repayable 30 June 2026) 80 000 Machinery (at cost) 120 000 Fixtures and fittings (at cost) 19 000 Accumulated depreciation – machinery 6 000 Cash at bank 12 900 Inventory 21 000 Trade receivables 42 120 Allowance for impairment of trade receivables 1 500 Sales revenue 180 950 Sales returns 17 200 Cost of sales 92 100 Commission income 5 450 Interest on loan 2 800 Rent expense 18 000 General expenses 13 460 Wages and salaries 20 560 Additional Information: 1. At 31 March 2022: (i) Commission income, $1 000 was earned but not received. (ii) Annual rent expense is $16 000. 2. $800 received by cheque from a credit customer was not recorded in the books. 3. It was decided that the allowance for impairment of trade receivables on 31 March 2022 should be 5% of trade receivables. 4. Machinery is to be depreciated at 10% per annum using the reducing-balance method. 5. Fixtures and fittings are estimated to last over five years with a scrap value of $2 000. Mario Limited decided to depreciate its fixtures and fittings using the straight-line method. 6. Interest on bank loan was not fully paid up. One -quarter of the bank loan was due to be repaid on 31 December 2022. 7. 10 000 shares were issued at $1.50 per share on 1 March 2022. The proceeds were deposited into the business bank account. The transaction has yet to be recorded. 8. The company declared a divided of $0.03 per share. The dividend will be paid on 11 April 2022.

3 CHIJ Katong Convent Preliminary Examination 2022 Principle