Geylang Methodist 2024 POA Paper 1 and 2 with Answers

(1, tiancimb Candidate Name Class Geylang Methodist School (Secondary) Preliminary Examination 2024 Index Number PRINCIPLES OF ACCOUNTS Paper 1 No Additional Materials required Setter: Mdm Fion Thia READ THESE INSTRUCTIONS FIRST 7087/01 Sec 4 Express/ Sec 5 Normal (Academic) 1 hour Friday, 16 August 2024 Write your index number and name in the spaces at the top of this page. Write in dark blue or black pen. Do not use staples, paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all questions on the question paper. The businesses described in this question paper are entirely fictitious. The number of marks is given in brackets [ ] at the end of each question or part question. The total marks for this paper is 40. This document consists of 8 printed pages. GMS(S)/P0A/P1/PRELIMS2024/4E5N(A) 1 The following information relates to Tasty Bakes as at 30 June 2022, 2023 and 2024. 2022 2023 2024 $ $ $ Equipment 50 400 47 300 51 600 Inventory 17 800 21 300 30 900 Trade receivables 6 470 6 380 5 970 Cash at bank 13 400 9 600 — Prepaid rent 3 400 3 210 4 530 Current portion of long-term borrowings — 6 000 6 000 Trade payables 11 000 7 000 13 500 Salaries payable 1 900 2 350 2 180 Bank overdraft — — 2 500 Working capital $28170 $25140 ? Current ratio 3.18 : 1 2.64 : 1 ? Quick ratio 1.54 : 1 1.04 : 1 ? REQUIRED (a) Calculate the working capital, current ratio and quick ratio for the year ended 30 June 2024. Present your workings clearly. Show your answers to two decimal places, where applicable. (I) Working capital Current ratio Quick ratio

GMS(S)/P0A/Pl/PRELIMS2024/4E5N(A) GMS(S)/P0A/Pl/PRELIM52024/4E5N(A) (b) Evaluate the trend in liquidity of Tasty Bakes business over the three years ended 30 June 2 The cash at bank account and bank statement of Sam's business for the month of February 2024 were 2022, 2023 and 2024. Use the given information and your answer to (a). (c) Suggest two ways to improve liquidity position of a business. [5] [2] (d) State one difference between a bank overdraft and current portion of a long-term borrowing. [2] [Total: 12] as follows: Cash at bank account Date Particulars Cheque number Debit ($) Credit ($) 2024 Feb 1 Balance b/d 5 Rent expense 105 1 700 8 Cash in hand 2 600 15 Utilities expense 106 1 600 18 Ben 1 520 22 Awang 3 600 Marl Balance b/d Bank statement Date Particulars Payments ($) Receipts ($) 2024 Feb 1 Balance b/d 2 Cheque 104 420 8 Cash 2 600 20 Cheque deposit 1 520 21 Cheque 106 1 600 23 Rejected cheque 1 520 25 Credit transfer: Harry Supplies 580 29 Bank charges 240 Balance ($) 2 900 Dr 1 200 Dr 3 800 Dr 2 200 Dr 3 720 Dr 7 320 Dr 7 320 Dr Balance ($) 3 320 Cr 2 900 Cr 5 500 Cr 7 020 Cr 5 420 Cr 3 900 Cr 4 480 Cr 4 240 Cr REQUIRED (a) State two types of internal controls, other than bank reconciliation, a business may use to safeguard cash balances. 3 4 [2] 4:2 io)

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