KCPSS 4NA POA Prelim 2024

N’Level Revision Set O – Kuo Chuan Presbyterian N’Level Prelim 2024 -PAPER 1- Answer all the questions. 1 Kim Teck is a sole trader. As at 30 June 2023, his business had the following assets and liabilities. Current Assets Current Liabilities Non-current Assets Non-current Liabilities $50 000 $26 000 $80 000 $30 000 Required (a) State the meaning of each of the following terms: (i) Assets [1] (ii) Liabilities [1] (iii) Equity [1] (b) Calculate the equity of Kim Teck’s business as at 30 June 2023. [3]

2 The table shows the transactions that occurred in Kim Teck’s business. Show the effect of the following transactions on assets, liabilities and owners’ equity. Assets Liabilities Owners’ Equity Example: Kim Teck contributed $10 000 cheque into the business. Cash at bank +10 000 No effect Capital +10 000 Kim Teck’s business purchased goods worth $6 000 on credit from a supplier. Kim Teck withdrew $5000 cash from the business bank account for personal use. [4] [Total: 10] 2 The trade receivable account for Terry Trading in the books of Lydia Wholesale is shown below. Trade receivable – Terry Trading Date Particulars Dr Cr Balance 2023 Jul 1 Bal b/d 14 000 Dr 9 Sales revenue 3 000 17 000 Dr 12 Sales return 400 16 600 Dr 23 Cash at bank 15 000 1 600 Dr Required (a) Interpret the entries in Trade receivable – Terry Trading account on: (i) 9 July 2023 [1] (ii) 12 July 2023 [1]

3 (iii) 23 July 2023 [1] (b) State the source document for each of the transactions on: (i) 9 July 2023: _________________________ [1] (ii) 12 July 2023: _________________________ [1] (iii) 23 July 2023: _________________________ [1] The financial year of Lydia Wholesale ends on 31 July. The trade receivable balances are as follows: 31 July 2022 31 July 2023 Trade receivables $59 800 $65 000 On 31 July 2023, Terry Trading was declared bankrupt. Lydia Wholesale wrote off the debt of $1 600 owed by Terry Trading. Required (c) Prepare the journal entry to record the debt written off on 31 July 2023. A narration is not required. [2]

4 Lydia Wholesale maintains an allowance for impairment of trade receivables based on 5% of its trade receivable at the end of every financial year. Required (d) Prepare the journal entry to record the adjustment of allowance for impairment of trade receivable for the financial year ended 31 July 2023. Narration is not required. [2] [Total: 10] 3 Jeremy is an accountant preparing the financial statements of a business on 31 December 2023. Required (a) Complete the following table indicating with a tick (√) on which side of a trial balance each item would appear. Debit Credit Prepaid rent expense Accumulated depreciation of office equipm