ESSS 2022 4E5N Prelim P2

EastSpringSecondarySchoolTowardsExcellenceandSuccess Name:………………………………………………………………………………( )Class:……………….OLevelPreliminaryExamination2022Secondary4Express/ 5Normal(Academic) PrinciplesofAccountsPaper2 7087/02 13September2022 2hoursTuesday 0800–1000 Additionalmaterials:5piecesofaccountingpaper READTHESEINSTRUCTIONSFIRSTWriteyourname,classandregisternumberinthespacesprovidedabove,andonalltheworkyouhandin.Writeindarkblueorblackpen.YoumayuseanHBpencilforroughworking.Donotusestaples,paperclips,highlighters,glueorcorrectionfluid.Theuseofanapprovedcalculatorisallowed.DONOTWRITEONANYBARCODES. Answerallquestions.Thebusinessesdescribedinthisquestionpaperareentirelyfictitious.Thenumberof marksis givenin brackets[ ] attheendofeachquestionorpartquestion.

2 Thisquestionpaperconsistsof7printedpagesincludingthecoverpage.Answerallquestions. Question1ThefollowingtrialbalancewasextractedfromthebooksofGritPteLtd,attheendofthefinancialyearon30June2022. Debit Credit$ $Sharecapital,180,000ordinaryshares 90,000Retainedearnings,1July2021 22,390Costofsales 84,500Utilities 11,870Advertising 6,130Salesrevenue 185,000Salesreturns 25,700Interestexpense 3,000Rentalexpense 8,500Commissionincome 1,150Officeequipment 78,300Fixturesandfittings 42,000Accumulateddepreciation:Officeequipment 23,000Fixturesandfittings 8,360Inventory 31,640Tradereceivables 81,500Allowanceforimpairmentoftradereceivables 6,140Cashatbank 1,380Tradepayables 8,1208%Bankloan 50,000Salaries 22,710Discount 310395,850 395,850

3 Additionalinformationon30June2022.1. Advertisingpaidincluded$1,200for advertisingon radioforthehalf-yearending31August2022.2. Commissionincomeof$420wasforservicestobeprovidedinJuly2022.3. Interestonthe8%Bankloanhasnotbeenfullypaid.$10,000oftheloanisrepayableon1December2022.4. Depreciationistobechargedasfollows:Fixturesandfittingsat15%perannumusingthestraight-linemethodOfficeequipmentat20%perannumusingthereducingbalancemethod5. A tradereceivableowing$1,500hadbeendeclareda bankruptbuthadnotbeenwrittenoff yet.6. The businessreviewedits debtorsand decidedthat 5% of the tradereceivablesbalancemaynotbecollectible.7. Adividendof$0.02persharewasdeclaredon28June2022tobepaidon1August2022. REQUIRED(a) Preparethestatementoffinancialperformancefortheyearended30June2022. [7] (b) Preparethestatementoffinancialpositionasat30June2022. [13] [Total:20]

4 Question2Charlynoperatesatradingbusiness.ShehasprovidedthefollowinginformationfromthebusinessbankstatementandcashatbankaccountforthemonthofApril2022. BankStatementPayments Receipts Balance 2022 $ $ $April1 Balanceb/f 4,520 Cr5 Chequeno:3013 720 3,800 Cr7 Deposit 1,800 5,600 Cr8 Chequeno:3012 670 4,930 Cr9 Rejectedchequefrom7April 1,800 3,130 Cr14 Chequeno:3015 300 2,830 Cr15 Deposit 780 3,610 Cr17 Chequeno:3016 500 3,110 Cr21 Chequeno:3014 1,010 2,100 Cr25 Directdeposit:Commission 310 2,410 Cr30 Bankcharges 25 2,385 Cr CashatbankaccountDate2022 Particulars Chequeno Debit$ Credit$ Balance$April 1 Balanceb/d 3,850 Dr4 Rent 3013 720 3,130 Dr7 YuesniTrading