HIHS Prelim 2022 4E5N Paper 1

1 HOLY INNOCENTS’ HIGH SCHOOL Candidate Name Class Index Number PRELIMINARY EXAMINATION 2022 SECONDARY 4 EXPRESS / 5 NORMAL ACADEMIC PRINCIPLES OF ACCOUNTS 7087/01 PAPER 1 Date: 16 August 2022 Duration: 1 Hour Candidates answer on the Question Paper. No Additional Materials are required. 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 9 printed pages (including cover page) and 1 blank page. O N A 40

2 Answer all questions. 1 Percilla discovered the following errors after preparing the trial balance for the year ended 31 December 2021. 1 Motor vehicle repairs of $580 had been recorded in the motor vehicles account. 2 Interest income of $130 received by cheque had been recorded in the books as $310. 3 Percilla took $300 worth of cash from the business office for her personal use. This has not been recorded in the books. The statement of financial performance for the year ended 31 December 2021 showed a profit of $7 350 before discovering the errors. REQUIRED (a) Prepare the journal entries to correct the errors above. Narrations are required. Journal [6]

3 (b) Explain two purposes of preparing a trial balance. 1 2 [2] (c) Using an accounting theory, explain why Percilla should record the $300 cash she took from the business office for personal use. [2] (d) Prepare a statement to show the adjusted profit for the year ended 31 December 2021. Percilla’s business Statement to show adjusted profit for the year ended 31 December 2021 [3] [Total: 13]

4 2 Sane owns a business which sells flowers. The following transactions took place during May 2021 with a credit supplier, Vivian. May 1 Sa