4E5N CHIJ Katong Prelim 2022 P1 QP

This question paper consists of 10 printed pages [Turn over CHIJ KATONG CONVENT PRELIM EXAMINATION 2022 SECONDARY 4 EXPRESS / 5 NORMAL (ACADEMIC) CANDIDATE NAME CLASS INDEX NUMBER PRINCIPLES OF ACCOUNTS 7087/01 Paper 1 August / September 2022 1 hour Candidates answer on the Question Paper. No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your name, class and index number 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, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. 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. For Examiner’s Use 1 2 3 4 Total

2 CHIJ Katong Convent Prelim Examination 2022 Principles of Accounts Paper 1 Sec 4E/5N Answer all questions. 1 Koh Rong runs a retail shop. The following information on wages for sales staff for the year ended 30 April 2022 is taken from the business. $ On 1 May 2021 Wages owed to staff 850 On 30 April 2022 Wages owed to staff 1 030 During the year ended 30 April 2022, wages paid in cheques to sales staff was $25 200. REQUIRED (a) Calculate the wages to be reported on the statement of financial performance for the year ended 30 April 2022. [3] (b) Prepare journal entries to record wages owed to staff on 30 April 2022. Narration is not required. Debit $ Credit $ [2] (c) State the effect on profit for the year if wages owed to staff on 30 April 2022 is not adjusted. [2]

3 CHIJ Katong Convent Prelim Examination 2022 Principles of Accounts Paper 1 Sec 4E/5N Koh Rong also provided the following ledger account for the year ended 30 April 2022 on the business’ commission income. Commission income account Debit Credit Balance $ $ $ 2021 May 1 Commission receivable 570 570 Dr 2022 March 31 Cash at bank 9 760 9 190 Cr April 30 Commission receivable 660 9 850 Cr REQUIRED (d) Interpret the entries in the commission income account on: (i) 1 May 2021 [1] (ii) 31 March 2022 [1] (iii) 30 April 2022 [1]

4 CHIJ Katong Convent Prelim Examination 2022 Principles of Accounts Paper 1 Sec 4E/5N (e) Name and explain the accounting theory applied when adjusting the commission receivable at year-end. [2] [Total: 12]

5 CHIJ Katong Convent Prelim Examination 2022 Principles of Accounts Paper 1 Sec 4E/5N 2 The following information is taken from the accounts of a trading business owned by Pitas. Year ended 30 April 2021 Year ended 30 April 2022 Gross profit margin 25% 18% Profit margin 9% 12% In 2022, Pitas found that goods were piling up in the storeroom. He then introduced a pro