2022 DSS Prelims 4E P1

1 Name: Index No. Class: DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL DUNEARN SECONDARY SCHOOL Dunearn Secondary School Preliminary Examination 2022 Principles of Accounts Secondary 4 Express Paper 1 7087/1 12 Sep 2022 1130 hr to 1230 hr 1 hour INSTRUCTIONS TO CANDIDATES Do not open this booklet until you are told to do so. Write your name, register number and class on the question paper. Write in dark blue or black pen. Do not use staples, paper clips, highlighters, glue or correction fluid. You may use a calculator. Please show all workings clearly. All calculations must be shown adjacent to the answer. The total number of marks is given in brackets [ ] at the end of each question. Setter: Ms Cindy Goh --------------------------------------------------------------------------------------------------------------------------- This paper consists of 9 printed pages, inclusive of the cover page. For Examiner’s use 1 (8) 2 (12) 3 (7) 4 (13) TOTAL (40) Parent's Signature _________________

2 1 The accountant of Ningxuan business discovered the following errors after preparing the trial balance as at 30 June 2021. 1. Cheque of $1 000 received from Le Le has been recorded in Lee Lee account. 2. The credit note of $300 issued to Lee Lee was not recorded. 3. Insurance premium of $6 800 paid was debited to cash at bank and credited to insurance account. 4. Bank interest income of $800 received was recorded as $80. The statement of financial performance for the year ended 30 June 2021 showed a profit of $5 858 before discovering the errors. REQUIRED (a) Prepare journal entries to correct the errors. _______________________________________________________________ ________________________________________________________________ ______________________________________________________________ ________________________________________________________________ ______________________________________________________________ ________________________________________________________________ ______________________________________________________________ ________________________________________________________________ ______________________________________________________________ ________________________________________________________________ ______________________________________________________________ _______________________________________________________________ [4]

3 (b) Prepare a statement to show adjusted profit for the year ended 30 June 2021. _______________________________________________________________ ________________________________________________________________ ______________________________________________________________ ________________________________________________________________ ______________________________________________________________ ________________________________________________________________ ________________________________________________________________ _____________________________________________________________ _______________________________________________________________ [4] [Total: 8]

4 2 This is an account extracted from Deon’s books: Allowance for impairment of trade receivables account Date Dr ($) Cr ($) Balance ($) 2018 April 1 Balance b/d (i) 8 000 Cr Dec 14 Dawn (ii) 3 000 5 000 Cr 2019 Mar 31 Impairment loss on trade receivables (iii) 100 4 900 Cr April 1 Balance b/d 4 900 Cr July 18 Janessa 3 900 1 000 Cr 2020 Mar 31 Impairment loss on trade receivables (iv) 6 000 7 000 Cr April 1 Balance b/d 7 000 Cr (a) Interpret the transactions on the following dates: (i) 1 April 2018. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ [2]

5 (ii) 14 Dec 2018. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (iii) 31 Mar 2019. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (iv) 31 Mar 2020. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (b) State the effect of not adjusting allowance for impairment of trade receivables on profit for the year ended: (i) 31 March 2019 ________________________________________ (c) State the effect of adjusting allowance for impairment of trade receivables on the current assets for the year ended: (ii) 31 March 2020 ________________________________________ [2] [2] [2] [2] [2] [Total:12]

6 3 The following are extracted from Daniel Technology books for the year end 2020 and 2021. Current assets 2020 ($) 2021 ($) Cash at bank 40 000 - Trade receivables 1 000 3 500 Inventory 3 000 56 300 Current liabilities Bank overdraft - 20 000 Trade payables 8 000 10 400 Income received in advance 2 000 3 100 Current portion of long term borrowing - 5 000 REQUIRED (a) Comment on the liquidity of Daniel Technology over the two years. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ [4]

7 (b) Based on the table given above, comment on the inventory efficiency of both companies. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Daniel Technology Raheem Hi-tech Inventory turnover 12 times 25 times Day sales in inventory ? days ? days [3] [Total: 7]

8 4 Faye runs a consultancy service business with financial year end of 31 December. Service Fee Income account Debit Credit Balance (-) (+) 2021 $ $ $ Jan 1 Service fee income receivable (i) 1 200 1 200 D