Ahmad Ibrahim 2024 POA Paper 1 and 2 with Answers

AISS PRELIMS 7087/01/2024 AHMAD IBRAHIM SECONDARY SCHOOLGCE O-LEVEL PRELIMINARY EXAMINATION 2024SECONDARY 4 EXPRESS & 5 NORMAL (ACADEMIC) Name:Class:Register No.:PRINCIPLES OF ACCOUNTS7087 / 01Paper 1Candidates answer on the Question Paper.No Additional Materials are required. 20241 hour READ THESE INSTRUCTIONS FIRSTWrite your name, index number and class in the spaces at the top of this page. Write in dark blue or black pen.You may use an HB pencil for any diagrams or graphs.Do not use staples, paper clips, highlighters, glue or correction fluid.QuestionMarks1 2 3Total 40Answer all questions.The number of marks is given in brackets [ ] at the end of each question or part question.

2 AISS PRELIM 7087/01/2024 This paper consists of 8 printed pages.Answer all questions.1Ryan provided the following cash at bank account for May 2024.Cash at bankDateParticularsChequeDebitCreditBalance2024 $$$May 1Balance b/d 340 Cr2Insurance 230 570 Cr 5Sales revenue 300 270 Cr 7Trade receivable, John 700430 Dr 9Trade payable, Arron001002760330 Cr10Transport expense001003460790 Cr11Inventory81020 Dr15Fixtures and fittings001004500480 Cr16Trade receivable, Yen Xi1 9001420 Dr28Trade payable, Nelson1 180240 DrJun 1Balance b/d 240 DrThe following bank statement was received on 3 June 2024.Bank StatementDateParticularsWithdrawalDepositBalance2024 $$$May 1Balance b/d 700 Dr1Cash 360340 Dr3Standing order - insurance 230 570 Dr7Credit transfer - Sam300270 Dr9Cheque no. 701009700430 Cr10Standing order – rent120310 Cr12Cheque no: 4123108101120 Cr13Cheque no: 001002670450 Cr16Cheque no: 00100450050 Dr 20Cheque no. 701009700750 Dr21Cheque deposit - Asthon74010 Dr31Bank charges72 82 DrAdditional informationThe accountant of the business discovered that the entry on 9 May 2024 was wrong.

3 AISS PRELIM 7087/01/2024[Turn over REQUIRED(a)Prepare the adjusted cash at bank account for May 2024. Bring down the balance to the next month. [6](b)Prepare the bank reconciliation statement as at 31 May 2024.

4 AISS PRELIM 7087/01/2024 [4](c)State and explain one internal control over cash, other than bank reconciliation. [2][Total: 12]2Joel is a perfume retailer and uses the First-In-First-Out (FIFO) method of inventory valuation. On 31 May 2024, the inventory of $3 000 is the total cost for 20 bottles of perfume. All transactions were carried with the following terms:1.All sales were made on cash terms. 2.Due to annual promotion, a trade discount of 10% was given to customers for all sales made in the month of June. 3.Business found a new supplier, Pari-Defuse, and made purchases for the month of June from Pari-Defuse on credit. 4.Pari-Defuse offers business a cash discount of 5% for payment made within 5 days of credit purchases.The following transactions took place for the month ended 30 June 2024. PurchasesSalesDateQuantity$DateQuantity$ (list price)20242024Jun 3203 300Jun 7205 500 6203 10015409 700 10203 90014203 400Date of payment made to Pari-Defuse for amount owing to date

5 AISS PRELIM 7087/01/2024[Turn over June 9June 13REQUIRED(a) Calculate the cost of sales for the month of June 2024.[1](b)Calculate the gross profit for the month of June 2024.[2](c)Calculate the ending inventory at 30 June 2024. [1](d)State the double entries for the transaction on 15 June 2024.[4](e)State the amount paid to Pasi-Defuse on 9 June 2024.[2](f)State amount owed to Pasi-Defuse at the end of June 2024.[1](g)Explain how inventory is valued, with the support of an accounting theory.[2]

6 AISS PRELIM 7087/01/2024 Joel has provided the information about his business rate of inventory for the two years ended 30 June 2023 and 2024.30 June 202330 June 202423.52 times19.81 timesREQUIRED(h)Calculate the days sales in inventory for the two years ended 30 June 2023 and 2024.30 June 202330 June 2024Days sales in inventory[2](i)Comment on the efficiency in inventory management of the business over the two years ended 30 June 2023 and 30 June 2024. [3](j)Give two examples on how Joel could improve the business’s efficiency in managing inventory.

7 AISS PRELIM 7087/01/2024[Turn over [2][Total: 20]3Glenn runs a trading business that sells bedsheet. The following ledger balances were provided for the financial year ended 30 June 2024$Trade receivables700Office equipment5 400Trade payables1 500Cash in hand 120Rent income receivable300Insurance expense payable890Bank overdraft450Capital (1 July 2023)700Profit for the year 4 600Drawings??REQUIRED(a)Calculate the amount for drawings, show your workings clearly. [4](b)State the double entry for the transfer of profit for the year ended on 30 June 2024.

8 AISS PRELIM 7087/01/2024 [2](c)State two types of non-accounting information a business will consider before deciding whether to grant credit to a customer.[2][Total: 8]END OF PAPERSetter Mr Teo CS

POA 7087/01/2024/Answer Q1a Cash at bank Date Partcular Dr ($)Cr ($)Bal ($) 2024 May-31Bal b/d 240Dr[1] Rent 120 120Cr[1] trsde receivable, John (dishonoured cheque) 700 580Cr[1] bank charges 72 652Cr[1] trade receivable, Asthon 740 88Dr[1] trade payable, Arron (error) 90 178Dr[1] Jun-01Bal b/d  178Dr Q1bBank reconcilation statement as at 31 May 2024 Bal as per bank statement -82[1] Add deposit in transit Trade receivable, Yen Xi 1900[1] 1818 less cheque not yet presented Transport expense 460 [1] trade payable, Nelson 11801640[1] Bal as per cash at bank 178 Q1cSegregation of duties Separate cash handling and cash recording duties among different employees so that no single person has control over the entrie cash process. Custody of cash Secure cash and cheques in a locked storage. AuthorisationObtain proper approvals for all payments from authorised personnel by having at least two persons to review and approve all payments. Bank reconciliation Compare the business’ records with the bank’s records to identify items that caused the difference between the ending balances in the cash at bank account and the bank statement.

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