2024 CCHY 4NA POA Prelim P2 ans

1 Chung Cheng High School (Yishun) Preliminary Examination 2024 Principles of Accounts Paper 2 (7086/02) Secondary 4NA Suggested answers and marking scheme Question 1 (a) Bovy Statement of financial performance for the year ended 30 June 2023 $ $ [m] Service fee revenue 74 000 1 Other income Rental income (6 000 – 2 000) 4 000 1 Discount received 2 200 6 200 1 80 200 Less: Other expenses Salaries 34 000 Repairs expense (3 000 + 400) 3 400 1 Depreciation of office equipment(15% x 40 000) 6 000 1 Depreciation of machinery[(20%x(80 000 – 16 000)) 12 800 1 Advertising expenses (15 000 – 3 000) 12 000 1 Discount allowed 3 500 (71 700) Profit for the year 8 500 1 OF [8m]

2 (b) Bovy [m] Statement of Financial Position as at 30 June 2023 Cost Acc Net book Assets Dep value Non-current assets $ $ $ Office equipment 40 000 18 000 22 000 2 Machinery 80 000 28 800 51 200 2 73 200 Current assets Cash in hand 4 300 Trade receivables 58 000 Prepaid advertising expense 3 000 65 300 1 Total assets 138 500 Equity and Liabilities Capital (57 900 + 8 500 - 1 100 (1)) 65 300 1 OF Non-current liabilities Long-term borrowings 45 000 1 Current liabilities Trade payables 23 000 Rental income received in advance 2 000 1 Repairs expense payable 400 1 Bank Overdraft 2 800 28 200 1 Total equity and liabilities 138 500 1 OF [12m] [Total: 20m] Question 2 (a) Cash at bank account Debit Credit Balance [m] 2023 $ $ $ Nov 30 Balance b/d 2 250 Dr 1 Suzy Sheep, Trade receivable 3 025 1 Utilities expense 270 1 Rebecca Pte Ltd, Trade receivable (dishonoured cheque) 2 500 1 Interest expense 20 2 485 Dr 1 Dec 1 Balance b/d 2 485 Dr 1 [6m]

3 (b) Bank Reconciliation Statement as at 30 November 2023 $ [m] Balance as per bank statement 635 1 Add: Deposits in transit Rental income 3 800 1 4 435 Less: Cheques not yet presented Emily Traders (cheque no. 117236) (1 950) 1 Adjusted Balance as per cash at bank account 2 485 1 [4m] (c) Any 2 causes (i) the payer’s bank account does not have enough money, is closed or frozen; (ii) the cheque is post-dated; (iii) the cheque has expired (over 6 months old); (iv) the cheque may contain errors (eg signature missing, amounts differ). [2m] (d) Any two of the following • Check the cash at bank balance of the business against the bank’s records • Find out the items that caused the difference between the business and bank’s records • Identify errors in the bank statement or cash at bank account • Determine the accurate bank balance after updating the cash at bank account • Acts as deterrence against fraud • A form of internal control of cash [2m] [Total: 14m]