BPGHS POA 7087 Paper 2 (Question Paper)

Name of Candidate: _____________________ ( ) Class: ______ Calculator Model: This paper consists of 8 printed pages BUKIT PANJANG GOVERNMENT HIGH SCHOOL PRELIMINARY EXAMINATION 2022 SECONDARY 5 GCE 'O' LEVEL SYLLABUS PRINCIPLES OF ACCOUNTS Paper 2 7087 / 02 Date: 25 August, 2022 Duration: 2h Time: 0750 – 0950 h READ THESE INSTRUCTIONS FIRST Answer all questions. Write your answers on the writing paper provided. Start each question on a fresh sheet of writing paper. 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. Setter: Mr Alex Yong [Turn over] 1 The following balances were extracted from the books of Hanz Pte Limited on 31 July 2022. Additional Materials: NONE

2 Debit Credit $ $ Issued share capital, 10 000 ordinary shares 10 000 Retained earnings, 1 August 2021 34 520 Bank loan 12 000 Motor vehicles at cost 198 000 Fixtures and fittings at cost 4 000 Accumulated depreciation: Motor vehicles 11 200 Fixtures and fittings 2 000 Sales revenue 358 000 Sales returns 15 500 Cost of sales 32 920 Inventory 62 350 Trade receivables 20 000 Trade payables 12 400 Wages and salaries 46 920 Advertising 8 889 General expenses 13 500 Commission income 250 Allowance for impairment of trade receivables 2 800 Discount allowed 3 030 Discount received 739 Cash at bank 38 800 443 909 443 909 Additional information 1 The company declared a dividend of $0.21 per share. The dividend will be paid on 1 November 2022. 2 Motor vehicles are depreciated at 25% per annum on net book value. 3 Fixtures and fittings are depreciated at 10% using the straight -line method. 4 The net realizable value of inventory as at 31 July 2022 is $62 000. 5 A credit customer who owed $1 800 was declared bankrupt and the amount has yet to be written off.

3 6 The allowance for impairment of trade receivables is to be maintained at 4% of trade receivables. 7 Advertising expenses, $889, were owing. 8 Wages and salaries was paid for 15 months ending on 31 October 2022. 9 Commission income, $150, had been received in advance. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 July 2022. [10] (b) Prepare the statement of financial position as at 31 July 2022. [10] [Total: 20]

4 2 On 1 July 2019, Lesla Holdings provided the following balance. $ Allowance for impairment of trade receivables 8 850 Lesla Holdings review its list of trade receivables at the end of every financial year and estimates that 9% of its trade receivables is likely to be uncolle