St Gabriels Sec 4E P2 with ANS

1 [Turn over SGSS/POAP2/4E5N/Prelim/2022 St. Gabriel’s Secondary School 2022 ‘O’ Preliminary Examination Subject : Principles of Accounts Paper : 7087/02 Level/Stream : Sec 4 Express / 5 Normal Academic Duration : 2 hours Date : 24 August 2022 Setters : Mr Tuang Fook Yong / Mdm Ruby Cheah No Additional Materials are required. _______________________________________________________________________ This question paper consists of 7 printed pages including this cover page. Name: …………………………………………( ) Class: Sec ……………….. 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. The number of marks is given in brackets [ ] at the end of each question or part question.

2 [Turn over SGSS/POAP2/4E5N/Prelim/2022 Answer all questions. 1 The following balances were extracted from the books of JY Pte Ltd, on 30 June 2022. $ Issued share capital, (400 000 ordinary shares on 1 July 2021) 778 000 Retained earnings 62 300 Property 900 000 Cash at bank 23 000 Cr Office equipment at cost 90 000 Motor vehicles at cost 180 000 Accumulated depreciation on 1 July 2021 - Office equipment 20 000 - Motor vehicles 24 000 Wages & salaries 70 800 Allowance for impairment loss of trade receivables 3 900 Sales revenue 322 900 Cost of sales 120 200 Rent received 88 000 Motor expenses 7 400 Sales returns 4 300 Insurance 28 000 Discount received 1 400 Inventory 28 600 Trade receivables 29 500 Trade payables 18 800 Interest on mortgage loan 3 500 4% Mortgage loan (repayable in 2032) 120 000

3 [Turn over SGSS/POAP2/4E5N/Prelim/2022 Additional information 1 Included in the insurance of $28 000 was a payment of $12 000 for a one year fire insurance policy commencing on 1 October 2021. 2 JY Pte Ltd sublets part of its property to a tenant for $8 000 a month since 2018. 3 A credit customer who owed $3 500, paid 40 cents for every dollar of debts owed on 30 April 2022. No record was made in the books. The remaining amount was to be written off as irrecoverable on 30 June 2022. 4 It is the business policy to maintain its allowance for impairment of trade receivable at 5% of trade receivables. 5 Inventory as at 30 June 2022 has a net realisable value of $26 500. 6 Cash of $5 000 withdrawn from the business bank account for office use was omitted from the books. 7 No record was made for dividend declared on 30 June 2022 at 5 cents per share. The dividends are to