CCHY 2024 POA P1 and P2

F 2 Chung Cheng Ylehun Answer all questions . 1 Jla Ying wants to start a lrad lng business . REQUIRED (■) Stale ihe role of accounting . .... ... ... ... ... ..... ...... ...... ...... ... ... ...... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . .. ... ... ... .. ..... ... ..... til (b) Stale and expla in one professiona l ethics of an accountan t. ......... , ..... ............................................................... .......... ...... ' ······ · ·· •···•·· ·· ·· ··· ...................................... .......... ........ ............... ... ········· ·· ·············" ... ····· ··········•""' ... ··••····· ................................. ········· ... ········· ... ············ ......... ············ ............. l21 (c) Stale one feature of a sole-proprietorsh ip . ··•········ ······· ·" .................. ······ ··~·-· ········· ............ ······ ········· .................. ······ ......... . ... .......................................................................................... ····················· ..... . . ······················································· ................................................................ t'\1 The accounting Information system is a system that a business uses to collect, store and process accounting data. {d) Complete the accounting information system. Source document (e) Explain the monetary theory . Ledger Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ ..................... ··························· ··· ······ ... ··· ········· ··· .......... ... ·--l~1 CCHY/2024/PRELIM/4NA/P1/POA

3 (f) Complete the following table by naming the source document used to record each transaction (I) to (Ill) . ,,, (11) (Ill) Transaction Cash sales of goods Returns from credit purchase Bank charges Source document (3) [Total: 10)

r 2 Just1n started ltad l JuaUn has 8 ng on 1 January 2022. Hit bualne11 buya and 11eA1 mobile phones on credit. Decembe r 20~~ed lhe followtng balance., from lhe ledger aocountt or his business as at 31 Cash al bank Trade recelvabl&11 Trade payab les Molor vehicles Bank loan REQUIRED (•I Slate lhe accounting equation. s 4 500 9200 10 900 68200 60000 ............................................................................................... ........................ . ································ .................................................................... ......... . ··· ·· · ···· [1} (b} Calculate the capital of the business. ............................................................................................................. . ... ········ · ·· •···· •··· ··· · ··· ··· · · •" ' "'''''"''' ' ''''''''' '' ''''' '' "'" "'"'' ''''' ' ''" ''''' ' ··················· ... ······ ········· ........... ····················•····················· " ····· •···· ···········•·····•·"' ·· ... ············ ······ ····· ··· ·········· ... ········· . . . ·······"· " ······· ··········· ······ ······································· ····················· ·· ................................................................. , .... . ............. ... ············· ·· .. .. .. .... ..... . (31 On 15 January 2023, Justin contributed his personal computer worth $3 500 for use in the business. REQUIRED (c} Prepare journal entries to record the above transaction in the books of Justin's business. A narration Is required. Journal I Date ' Particulars Debit Credit 2023 $ $ I I I I ' I ; CCHY/2024/PRELIM/4NA/P1/POA [J

5 (d) Define the form 'Orawfnge'. .................................................... . ·················· ········ •" ' ' ''' ''' ' '···· · . ..................... ........ " ............. , ' .................... ' ............................................... . The followlng traneecttons took place In the month of January 2023. REQUIRED ........ ..... ...... ...... (1) (•) Complete the following table for transaction (I), by stating the effects of the following t/8nsactlons on the Acc<xlnllng Equation. Show both the effect (either•+ •, •-• and the amount or ·no effect") and lhe name of the account affected . The first one has been completed as an • &Kemple. /. I Effects on I j Transaction Assets Liabilities Owner's Equity lE j /ustin contributed $3 000 cash CIJshinhsnd No effect Capital g. I nto the business . + $3000 + $3 000 j , /; The bu,ines, bough! good• {I) worth $1 000 on etad/1 from Chung Cheng Trading. (21 I (f) State two reasons how the owne r's equity changed within a year. 1 ·················· ····················· ················································ ············ ······ ..... . I ······················ ........ ············· ........ ··························· ................................... . 2 ...... ·················· ·········································· ···•·····•·· ... ········· .. .... ... ... ... ... ... ... ... ... ············ ·········································· ·················· ············ ......... ······ ......... .... . CCHYl20241PRELIM/4NNP1/POA [21 [Total: 12]

(b) 3 8 (Tum aver 2 J 8 arFOd 11 lho owner of a lrading buslne11. Jarod Trading. The financJal year ond or hl1 business 1, obrvary , The lolfowjng lnformalfon relallng lo commlufon Income was provided for tho yoar ondod 28 Fobrvary 2024. During Ille year, 10101 comm/11/on lncomo received by cheque omounlod lo $30 000 . 2 On 28 February 2024. commission Income of S6 000 was eamod but was not received by Jarad's bual11eu. REQUI REO (•) Prepare Journal enlries 10 accounl for commission Income for lhe year endod 28 February 2024, lncludlf'{l lhe closing entry . Narrations are not requ ired . Journal I Dale I Partlcufars Debit Credit 2024 $ $ I I I I I I I I I I I I I I I I I (6] State the amount of commission Income to be rn recorded in the statement of financial pe ormance for the year ended 28 February 2024_ CCHY/2024/PRELIM/4NA/P1/POA

7 ,. , .. ..... ······ ... (1 J ...... " .... I/le statement of (c) Stato tho socilon In which the lld/ustment 101 par1 2 will be recorded on financial position as at 28 February 2024: ··· ·· ······ " •'' ' '"' ' ' '' '. ······" ..... ... (1) [Total: 8) 4 Kai Xln Trading has a financial year end of 31 December. ft Is the business policy to charge a full year's depreciation In the year of purchase of Its non-rurrent asset. On 1 January 2022, I.he business bought a machinery costing $60 000. The following accumulated depreciation of machinery account was provided by the business . Accumulated Depreciation of Machinery account 2022 Dec 31 Depreciation of mach inery 2023 Jan 1 Balance bid Dec 31 Deprec iation of machinery 2024 Jan 1 Balance bid REQUIRED Debit Credit $ $ 6000 6 000 (a) State the depreciation method used to depreciate machinery . Balance $ 6000 Cr 6 000 Cr 12 000 Cr 12 000 Cr ................ ...... ............ ······ ·········· ·" ·· .... , ........... .. ........ .............. ...... ..................... [1) (b) Calculate the rate of depreciation for machinery . ......................... ...................................................................................................... ··············" ..... , ........................... ········· ............ , ........... ................ ········· ................... . .... ······ ............ ······ ...... ...... ··· ··· ..... .......... ....... ............. ... ....... ..... .. ........................ [1] CCHY/2024/PRELIM/4NA/P1/POA

, f (c) Ex.plain ""'~ I · "'"' an curron1 asset 0Ccount1no lhno,y, Why a bulhtn ,_,. to chlt09 ~~ on ' non- (21 (Turn over On f June 2023, Kai Xln Ttlld,ng purchall8d a