HIHS Prelim 2022 4E5N Paper 2

1 HOLY INNOCENTS’ HIGH SCHOOL Candidate Name Class Index Number PRELIMINARY EXAMINATION 2022 SECONDARY 4 EXPRESS / 5 NORMAL ACADEMIC PRINCIPLES OF ACCOUNTS 7087/02 PAPER 2 Date: 22 August 2022 Duration: 2 Hours Writing Paper (5 sheets) 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 tape/fluid. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. Set by: Mr Nalpon Walter Edgar Vetted by: Ms Natalie Kwok This document consists of 5 printed pages (including cover page) and 1 blank page. O N A 60

2 Answer all questions. 1 The following balances were extracted from the books of Charlie and Brothers Pte Ltd , a consultancy business, on 31 March 2021. $ Motor vehicles, at cost 60 000 Fixtures and fittings, at cost 8 000 Accumulated depreciation of motor vehicles 12 000 Accumulated depreciation of fixtures and fittings 2 400 Share capital, 40 000 ordinary shares 40 000 Retained earnings, 1 April 2020 47 480 Rental expense 24 000 Cash at bank 117 240 Commission income 7 000 Trade receivables 33 300 Allowance for impairment of trade receivables 1 800 Consultancy service revenue 131 360 Utilities expense 9 700 General expenses 39 800 Long-term loan 50 000 The following information was made available on 31 March 2021. 1 Rental expense covers the period 1 April 2020 to 30 June 2021. 2 Commission income of $2 500 was earned but yet to be received. 3 One-fifth of the long-term loan is to be repaid on 31 December 2021. 4 Motor vehicles are to be depreciated at 20% per annum on net book value. Fixtures and fittings are to be depreciated at 10% per annum on cost. 5 A review of trade receivables showed that 4 % of the trade receivables are likely to become uncollectible. 6 Ordinary shares of 20 000 were issued at $2 each and paid on 31 December 2020. This has not been recorded in the books. 7 Dividends at $0.04 per share were declared on all shares issued on 31 March 2021. The dividends would be paid on 7 April 2021. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 March 2021. [7] (b) Prepare the statement of financial position as at 31 March 2021.