MSS Prelim 2022 4E5N P1 with ANS

Marsiling Secondary School GCE O-Level Preliminary Examination 2022 This question paper consists of 10 printed pages, including the cover page. Candidates answer on the Question Paper. No Additional materials are required. READ THESE INSTRUCTIONS FIRST Write your name, index number and class on all the work you hand in. Write in dark blue or black ink. All calculations must be shown adjacent to the answer. Do not use staples, paper clips, highlighters, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The businesses described in this question paper are entirely fictitious. The number of marks is given in brackets [ ] at the end of each question or part question. For Examiner’s Use Question Marks 1 2 3 4 Setter: Mr Alfred Wee Total Subject: Principles of Accounts Level: Sec 4 / 5 Stream: Express / Normal (Academic) Paper 1 (7087/01) Date: 22 August 2022 Duration: 1 hour Name: Index No: Class: 40 40

2 Answer all questions. 1 Kenny Li is a sole trader. The financial year of his business, Lucky Best, ends on 31 December. On 1 January 2021, the balance on the capital was $54 800. During the year the following took place. 2021 Feb 15 Cash drawings $480. Mar 22 Kenny took inventory with a selling price $500 for own use. The business applies a 25% mark-up on cost to its goods. May 12 Kenny brought into the business his private car valued at $7 600. Sep 16 Drawings by cheque $652. Profit for the year ended 31 December 2021 was $8 500. REQUIRED (a) Prepare Kenny’s drawings account for the year ended 31 December 2021. Close off the account by a transfer on that date. [3] Drawings (b) Prepare Kenny’s capital account for the year ended 31 December 2021. Bring down the balance on 1 January 2022. [4] Capital

[Turn over 3 (c) Name and explain the accounting theory applied when recording Kenny’s drawings. [2] Name ________________________________________________________ Explanation ___________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ [Total: 9]

4 2 LuvCar Rental Pte Ltd started its business on 1 July 2019 and purchased two identical cars costing $75 000 each by cheque. On 9 December 2021, the business sold one of the cars for $39 500 on credit to Yolo Trading. On the same day, it bought a new van for $60 000 by cheque. LuvCar Rental Pte Ltd depreciates its motor vehicles at 30% per annum using the reducing-balance method. A full year’s depreciation is charged in the year of purchase and no depreciation is charged in the year of s