2022 Fajar 4E5N Prelims P1 V2

FAJAR SECONDARY SCHOOL 2022 PRELIMINARY EXAMINATIONS SECONDARY 4 EXPRESS / 5 NORMAL (ACADEMIC) CANDIDATE NAME CLASS INDEX NUMBER PRINCIPLES OF ACCOUNTS Paper 1 Setter: Ms Sabrina Additional Materials: Nil 7087/01 Date: 26 August 2022 Duration: 1 hour READ THESE INSTRUCTIONS FIRST Write your name, class and index number on all the work you hand in. 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. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. The total marks for this paper is 40. Do not open this document till permission is given. This document consists of 9 printed pages and 1 blank page O

2 Answer all questions. 1 Sanjith set up his business on 1 January 2021. He needed advice on some terms. REQUIRED (a) State the role of accounting. ……………………………………………………………………………………………………................ ………………………………………………………………………………………………………..…..[1] (b) Explain the meaning of each of the professional ethics of accounting. i. Integrity ………………………………………………………………………………………………………… ……………………………………………………………………………………………………...[1] ii. Objectivity ……………………………………………………………………………………………………… ……………………………………………………………………………………………………...[1] (c) Explain the going concern theory. ……………………………………………………………………………………………………................ ………………………………………………………………………………………………………..…..[2]

3 Sanjith started the business on 1 January 2021 by depositing $50 000 into the business bank account. During the year, Sanjith withdrew goods worth $500 for personal use. He also took $800 cash to pay for his personal utilities. The business made a profit of $65 000 for the year ended 31 December 2021. REQUIRED (d) Prepare the following journal entries: i. To transfer drawings to the capital account on 31 December 2021 Date Particulars Debit $ Credit $ [2] ii. To transfer profit for the year to the capital account on 31 December 2021 Date Particulars Debit $ Credit $ [2] (e) Prepare an extract of the statement of financial position as at 31 December 2021 to show the equity section. Sanjith Statement of financial position as at 31 December 2021 ……………………………………………………………………………………………………................ ……………………………………………………………………………………………………................ ……………………………………………………………………………………………………................ ……………………………