QSS 2022 4E Prelim Paper 1

NAME: CLASS: INDEXNO: QUEENSWAYSECONDARYSCHOOLPRELIMINARYEXAMINATION2022SECONDARY4EXPRESS/5NORMALACADEMIC PrinciplesofAccounts 7087/01Paper1 15September20221hourCandidatesanswerontheQuestionPaper READTHESEINSTRUCTIONSFIRSTWriteyourindexnumberandnameonalltheworkyouhandin.Writeindarkblueorblackpenonbothsidesofthepaper.YoumayuseanHBpencilforanyroughworking.Allcalculationsmustbeshownadjacenttotheanswer.Theuseofanapprovedcalculatorisallowed. Answerallquestions. Thebusinessesdescribedinthisquestionpaperareentirelyfictitious. Thenumberofmarksisgiveninbrackets[ ]attheendofeachquestionorpartquestion. ForExaminer’sUse Parent’sSignature 40 Thisdocumentconsistsof8printedpages. 1

Setter: MrsCindyTan [Turnover 2

AnswerALLquestions 1 MeiLingsellshairaccessories.Thefollowingerrorswerediscoveredbythebusinessfortheyearended30September2022. 1 Maintenanceof displayshelvesof$300wasrecordedinthefixturesandfittingsaccount.2 Chequepaymentof$250tocreditsupplier, Angie,wasrecordedasadebitentrytothecashatbankaccountandacreditentrytoAngie’saccount.3 Interestincomeof$90receivedincashwasrecordedinthebooksas$70. REQUIRED(a) Preparejournalentriesto correcttheaboveerrors.Narrationsarenotrequired. Journal Date Particulars Debit$ Credit$ [6] 3

(b) Completethefollowingtabletoshowtheeffectoftheerrorsontheprofitbeforecorrection.Ifthereisnoeffect,placeatick(✔)inthe‘Noeffect’column. Wherethereisaneffectontheprofitbeforecorrection,indicatetheamountbywhichprofitisoverstatedorunderstated. Noeffect Overstated$ Understated$Error1Error2Error3 [3] (c) Explainhowerrorscouldstillexistwhenatrialbalanceisbalanced. [2] [Total:11] 4

2 Thefollowingarethetransactionsrelatedto oneof Rashid’s creditcustomers,KimlyforthemonthofAugust2021. Tradereceivable,Kimly2021 Dr Cr Balance$ $ $Aug1 Balb/d 20000Dr6 Cashatbank 19500 500DrDiscountallowed 500 -10 Servicefeerevenue 12000 12000Dr13 Servicefeerevenue 5000 17000Dr20 Cashatbank 10000 7000Dr 20 Allowanceforimpairmentoftradereceivables 7000 - REQUIRED (a) Interprettheentriesinthetradereceivable,Kimlyaccounton:(i) 1August2021 [1] (ii) 6August2021 [2] (iii) 10August2021 [1] 5

(iv) 20August2021 [2] (b) Explaintheaccountingof allowanceforimpairmentof tradereceivablesusingtheprudencetheory. [2] [Total:8] 6

3 Rajurunsabusinessthatprovidesconsultancyservices.Thefollowingisavailableon1July2021. $Consultancyfeerevenuereceivedinadvance 3000Wagesexpenses payable 4500 Additionalinformation: Fortheyearended30June2022,thecashat bankaccountshowedthatthebusinessreceiveda totalof $100000forconsultancyfeerevenue.Therewasanother$5000thathasyettobereceived. Wagesexpense$8000waspaidbycheque.$600ofthewagesisstillowingtotheworkerson30June2022. REQUIRED (a) Preparealltherelevantjournalentriestoaccountfortheconsultancyfeerevenuefortheyear ended30June2022.Narrationsarenotrequired. JournalDate Particulars Debit$ Credit$ 7

[8](b) Calculatetheamounttobeshownaswagesexpenseinthestatementoffinancialperformancefortheyearended30June2022. [3] (c) Explainanaccountingtheorythatabusinessshouldapplywhenrecordingaccruedwages. [2] (d) Prepareanextractofthestatementoffinancialperformancefortheyearended30June2022,showingtherelevantportion(s). RajuStatementoffinancialperformancefortheyearended30June2022 [2] [Total:15]8

9

4 Atiqahhadthefollowingefficiencyratiosevaluatinginventorymanagementfortheyearsended30September2020,2021and2022. 2020 2021 2022Rate of inventoryturnover 9.43times 8.33times 7.28times Dayssalesininventory 20.63days 25.80days 32.51days REQUIRED (a) EvaluateAtiqah’sefficiencyininventorymanagementoverthethreeyearsended30September2020,2021and2022. [4] (b) SuggesttwowaystoimproveAtiqah’sefficiencyininventorymanagement. [Total:6]10 1 2 [2]