YCKSS 4E5N 2022 PRELIM POA P2 ANS

Name:ANSWERS Index Number: Class: YIO CHU KANG SECONDARY SCHOOL O-LEVEL PRELIMINARY EXAMINATION 2022 SECONDARY FOUR EXPRESS SECONDARY FIVE NORMAL (ACADEMIC) PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 2 hours Additional materials: Foolscap Paper (4 sheets) 14 September 2022 (Wednesday) READ THESE INSTRUCTIONS FIRST Write your name, index number and class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use an HB pencil for rough working. Do not use staples, paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions. The businesses described in this question paper are fictitious. Start each question on a separate page. All calculations must be shown adjacent to the answer. Where the T account format is used, the account should be balanced. Where applicable, the balance should be brought down to the next financial year. Where the columnar format is used, the running balance column should be updated for the first and last entries. Where applicable, the balance should be brought down to the next financial year. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. For Examiner’s Use 60 Setter: Mr Jude Ang This document consists of 5 printed pages and 3 blank pages.

2 O-LEVEL PRELIM EXAM 2022 7087/02 Answer all questions. 1 (a) Prepare the statement of financial performance for the year ended 31 December 2021. [10] Smiley Statement of financial performance for the year ended 31 December 2021 ($) ($) Sales Revenue 179870 Less: Sales Returns (12150) Net Sales Revenue 167720✓ Less: Cost of Sales (86550) Gross Profit 81170✓ Add: Other Income Rental income 6550✓ Commission income 3240✓ Discount Received 2120✓ 11910 93080 Less: Other Expenses Impairment loss on trade receivables 690✓ Rent expense 9800 Commission expense 4320 Interest expense 6000 Depreciation on MV (10%*90000) 9000✓ Salaries expense 24000✓ Impairment loss on inventory 3000✓ Discount allowed 3130 59940 Profit for the year 33140✓

3 O-LEVEL PRELIM EXAM 2022 7087/02 (b) Prepare the statement of financial position as at 31 December 2021. [10] Smiley Statement of financial position as at 31 December 2021 Non-Current Assets ($) ($) ($) Cost Accumulated Depreciation Net Book Value Machinery 60000 0 60000 Motor Vehicle 100000 19000 81000 141000✓ Current Assets Cash at Bank (+50000) 121700✓ Trade Receivables (