MSS Prelim 2022 4E5N P2

This question paper consists of 7 printed pages, including the cover page. Marsiling Secondary School GCE O-Level Preliminary Examination 2022 Subject: Principles of Accounts Paper 2 (7087/02) Level: Sec 4/5 Stream: Express/ Normal (Academic) Date: 31 August 2022 Duration: 2 hours Name: Index No: Class: No Additional Materials are required. READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper ask the invigilator for a continuation booklet. Answer all questions. The use of an approved calculator is allowed. The businesses described in this question paper are entirely fictitious. Start each question on a separate page. All calculations must be shown adjacent to the answer. The number of marks is given in brackets [ ] at the end of each question or part question. FOR EXAMINER’S USE TOTAL Setter: Mr Alfred Wee 60

2 Answer all questions 1 The following balances were taken from the books of Jander Limited on 31 July 2022: $ Share capital, 100 000 ordinary shares 100 000 Retained earnings, 1 August 2021 37 000 Cost of sales 175 610 Sales returns 4 100 Sales revenue 350 900 8% Mortgage loan repayable on 20 May 2027 20 000 Interest on mortgage loan 1 300 Inventory 49 500 General expenses 63 800 Wages and salaries 46 000 Repairs and maintenance 8 600 Allowance for impairment of trade receivables 2 200 Trade receivables 29 400 Trade payables 7 700 Fixtures and fittings 58 000 Motor vehicles 160 000 Accumulated depreciation Fixtures and fittings 21 500 Motor vehicles 54 600 Bank overdraft 810 Commission received 1 600 Additional information 1 At 31 July 2022: i) Annual wages and salaries amounted to $48 000. ii) Interest on mortgage loan was still not fully paid. iii) Commission received but not earned was $250. 2 2 Included in general expenses was an insurance expense of $15 400 which covers a period of 14 months from 1 August 2021. 3 4 Motor vehicle repairs, $2 000, had been incorrectly debited to the motor vehicles account. Annual depreciation is to be charged as follows: i) Fixtures and fittings, at 10% per annum using the straight-line method. The fixtures and fittings has a residual value of $3 000, ii) Motor vehicles at 20% per annum using the reducing-balance method.

3 [Turn over 5 The allowance for impairment of trade receivables is to be maintained at 5% of the trade receivables. 6 7 A repayment, one-fifth of the 8% mortgage loan, will be due during the year ended 31 July 2023. A dividend of 3 cents per share was declared on 16 July 2022. It is to be paid out to shareholders on 31 August 2022. REQUIRED (a) Prepare t