Pasir Ris Sec 4E5N POA Prelim Exam (Paper 2) ANS

Name Class Register Number SECONDARY 4 EXPRESS / 5 NORMAL (ACADEMIC) PRELIMINARY EXAMINATION 2022 PRINCIPLES OF ACCOUNTS Monday 1100 – 1300 7087/2 29 August 2022 2 hour s No Additional Materials are required. 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. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. All questions in this paper carry equal marks. This document consists of 8 printed pages. Setter: Lee Chee Weng [Turn over Pasir Ris Secondary School

2 Section A Answer all questions. 1 The following balances were extracted from the books of Daniel Consultancy on 30 June 2022. $ Consultancy fee revenue 325 200 Share capital, 50 000 ordinary shares 50 000 Retained earnings 80 540 Rent 64 000 Wages and salaries 114 000 Insurance 5 400 Fixtures and fittings 35 000 Motor vehicles 75 000 Accumulated depreciation: Fixtures and fittings 12 250 Motor vehicles 30 000 Trade receivables 125 600 Allowance for impairment of trade receivables 5 782 Trade payables 8 720 Cash at bank 134 742 6% Bank loan repayable 35 000 Interest on bank loan 550 Commission income 6 800

3 Additional information 1 - Rent expense relates to a sixteen-month period ending on 31 October 2022. - Wages and salaries, $2 600 were outstanding. - Commission income received in advance was $950. 2 Bank loan approved and started on 1 January 2022. Loan interest for the year ended 30 June 2022 was not fully paid. 3 Motor vehicle is to be depreciated at 20% per annum using the reducing balance method. 4 Fixtures and fittings are to be depreciated at 10% per annum using the straight-line method. 5 A trade receivable owing $6 600 was declared bankrupt. This amount is to be written off. 6 The allowance for impairment of trade receivables is to be maintained at 5% of trade receivables. 7 The company declared a dividend of $0.50 per share. The dividend will be paid on 31 December 2022. REQUIRED (a) Prepare the statement of financial performance for the year ended 30 June 2022. [10] (b) Prepare the statement of financial position as at 30 June 2022. [10] [Total: 20]

4 2 The following information was extracted from the books of Wei Cong Trading on 31 August 2021: $ Trade receivables 25 000 Allowance for impairment of trade receivables 4 320 On 26 January 2022, a credit custom