St Gabriels Sec 4E P1 with ANS

1 [Turn over SGSS/POAP1/4E5N/Prelim/2022 St. Gabriel’s Secondary School 2022 ‘O’ Preliminary Examination Subject : Principles of Accounts Paper : 7087/01 Level/Stream : Sec 4 Express / 5 Normal Academic Duration : 1 hour Date : 19 August 2022 Setters : Mr Tuang Fook Yong / Mdm Ruby Cheah ▪ Section A: You must answer all parts of Question 1. ▪ Section B: Answer one question. ▪ You are advised to spend no longer than 50 minutes on Section A. INFORMATION FOR CANDIDATES The number of marks of each part-question is shown in brackets. Question 1 2 3 4 Total Attained Maximu m 11 10 7 12 40 _______________________________________________________________________ Name: …………………………………………( ) Class: Sec ……………….. READ THESE INSTRUCTIONS FIRST Write your name, class and register number on all the work you hand in. Write in dark blue or black pen. You may use an HB pencil for any diagrams or graphs. 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 entirely fictitious. The number of marks is given in brackets [ ] at the end of each question or part question.

2 [Turn over SGSS/POAP1/4E5N/Prelim/2022 This question paper consists of 10 printed pages including this cover page. Answer all questions. 1 Straford owns a tuition centre, ACEs. It has been the business policy that all receipts and payments of the centre are made by cheques. Straford decided to expand his business by operating another branch in Bukit Timah. As such, the business took a bank loan, to be repaid equally over 20 years, of $240 000 from SG Bank on 1 August 2020. Additional information 1 ACEs’ financial year ends on 31 December each year. 2 Partial repayment of the loan and interest due is on 31 July each year. 3 Interest rate is at 4% per annum payable on the outstanding amount of the loan on 31 July every year. REQUIRED (a) Calculate the amount (showing all working) of loan interest to be included in the statement of financial performance of the business for the year ended 31 December 2021. [3] (b) Prepare an extract statement of financial position for ACEs as at 31 December 2021. Show only the liabilities section. Extract Statement of financial position as at 31 December 2021

3 [Turn over SGSS/POAP1/4E5N/Prelim/2022 [3] The following information have also been provided by ACEs. $ Account balance as at 1 January 2021 Tuition fees received in advance 2 800 During the year ended 31 December 2021 Tu