QSS 2022 4E Prelim ANSWERS

QUEENSWAY SECONDARY SCHOOL PRELIM EXAMINATION 2022 PRINCIPLES OF ACCOUNTS PAPER 1 and 2 (7087) Sec 4 Express/ 5 Normal Academic Mark Scheme

7087 Sec 4 Express Prelim PAPER 1 Table of Specifications Qn Marks Qn Marks Qn Marks Qn Marks Introduction to Accounting 0 Accounting Information System 0 Elements of financial statements and the accounting equation 0 Double entry recording 0 Trial balance and financial statements 0 Revenue and other income 3a 8 3d 1 9 Cost of sales and other expenses 3b, 3c 5 3d 1 6 Cash 0 Inventories 0 Trade receivables 2b 2 2a 6 8 Non-current assets 0 Trade payables 0 Long-term borrowings 0 Equities 0 Correction of errors 1a 6 1b, 1c 5 11 Financial statement analysis 4b 2 4a 4 6 Total 4 25 7 4 40 7087 Sec 4 Express Prelim PAPER 2 Table of Specifications Qn Marks Qn Marks Qn Marks Qn Marks Introduction to Accounting 0 Accounting Information System 0 Elements of financial statements and the accounting equation 0 Double entry recording 0 Trial balance and financial statements 1a, 1b 20 20 Revenue and other income 0 Cost of sales and other expenses 0 Cash 0 Inventories 0 Trade receivables 0 Non-current assets 4a, 4b, 4c 6 4d 7 13 Trade payables 0 Long-term borrowings 0 Equities 3e 2 3a, 3b 11 3c, 3d 2 15 Correction of errors 0 Financial statement analysis 2c 4 2a 2 2b 6 12 Total 6 19 22 13 60 Total Marks Topic P1 AO1 (15%) P1 AO2 (10%) P1 AO3 (10%) P1 A04 (5%) Total Marks Topic P1 AO1 (10%) P1 AO2 (15%) P1 AO3 (20%) P1 A04 (15%)

PAPER 1 Q1, Total 11 marks (a) Total 6 marks; 1 mark for each correct entry Journal Date Particulars Debit Credit 2022 $ $ 1 Sep-30 Maintenance expense 300 1 Fixtures and fittings 300 1 2 30 Trade payable - Angie ($250 x 2) 500 1 Cash at bank 500 1 3 30 Cash in hand 20 1 Interest income 20 1 (b) Total 3 marks 1 1 1 c) Total 2 marks; accept any 2 stated When a trial balance is balanced, errors can exist when: ▪ A transaction is not recorded at all. ▪The wrong amount is recorded in the correct side of the correct accounts. ▪Transaction is recorded in the wrong account of a different accounting element. ▪Transaction is recorded in the wrong account of a same accounting element. ▪The correct amount is recorded in the wrong sides of the correct accounts involved. No effect Overstated $ Underst ated $ Error 1 300 Error 2  Error 3 20

Paper 1 Q2, Total 8 marks a) Total 6 marks ai) On 1 August, Kimly owed $20 000 to Rashid. 1 aii) 2 aiii) 1 aiv) 2 b) Total 2 marks 2 On 20 August, Rashid received a cheque, $10 000 from Kimly [1] and the outstanding amount owing of $7 000 was written off as uncollectible. [1] An allowance for impairment of trade receivables is an estimate of the amount of debts likely to be uncollectible. [1] This will ensure that the trade receivables balance reflects the amount that is collectible and is not overstated. [1] On 6 August, Rashid re