2023 SMSS POA 4E5N PRELIM P1 WITH ANS

ST. MARGARET’S SECONDARY SCHOOLPreliminary Examinations 2023CANDIDATE NAMECLASSREGISTER NUMBERPRINCIPLES OF ACCOUNTSPaper 1 Secondary 4 Express / 5 Normal (Academic)7087/0125 August 20231 hour Additional Materials: NilREAD THESE INSTRUCTIONS FIRSTDo not turn over the pages until you are told to do so.Write your name, class and index number on all the work you hand in, including the cover page.Write in dark blue or black pen.Do not use staples, paper clips, highlighters, glue or correction fluid.The use of an approved calculator is allowed.Answer all questions in the spaces provided in the Question Paper.Where the columnar format is used, the running balance column should be updated for the first and last entries. Where applicable, the balance should be brought down to the next financial year.All calculations must be shown adjacent to the answer.The businesses described in this question paper are entirely fictitious.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. This document consists of 10 printed pages.

2Answer all questions.1Zen wishes to set up a business selling curtains. He approaches you for the following advice. REQUIRED(a)Give two features of a sole proprietorship.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[2](b)State one difference between a bank loan and a bank overdraft.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[2]On 31 July 2023, after preparing the trial balance, Zen discovered the following errors.1.Utilities of $345 was recorded on the wrong side of both the cash at bank and utilities accounts.2.Zen withdrew $1 200 worth of curtains from the business as samples for his clients. This was recorded in the drawings account.

3REQUIRED(c)State the journal entries to correct the above errors. Narrations are not required.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[4](d)The profit for the year before discovering the errors was $28 900. Calculate the correct profit for the year ended 31 July 2023, after the correction of the above errors 1 and 2. Show your workings.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[2][Total: 10]

42Fast Forward Pte Ltd provided following account balance on 1 August 2020.Retained ear