CHIJ Secondary 2024 POA Paper 1 and 2 with Answers

O CONVENT OF THE HOLY INFANT JESUS SECONDARYPreliminary Examination in preparation forthe General Certificate of Education Ordinary Level 2024CANDIDATENAMECLASSREGISTERNUMBERPRINCIPLES OF ACCOUNTSPaper 1 Candidates answer on the Question Paper.No Additional Materials are required.7087/0127 August 20241 hour READ THESE INSTRUCTIONS FIRSTWrite your name, class and register number in the spaces provided on the work you hand in.Write in dark blue or black pen.You may use an HP pencil for rough working.Do not use staples, paper clips, glue, correction fluid or correction tape.Answer all questions.You may use a calculator.Where layouts are to be completed, you may need all the lines for your answer.The businesses mentioned in this question paper are fictitious.The number of marks is given in brackets [ ] at the end of each question or part question.For Examiner’s Use1234

2 CHIJSEC/2024/PRELIM/4E5N/POA/7087/P1 This document consists of 8 printed pages.[Turn overAnswer all questions.1Thomas Trading buys goods from Ashlyn.The business provided the following information for month of February 2024.Ashlyn accountDateParticularsDrCrBal2024$$$Feb 1Balance b/d2 180 Cr4Inventory1 5003 680 Cr12Cash at bank1 4402 240 Cr12Discount received3601 880 Cr21Inventory6 4208 300 Cr23Inventory5007 800 CrREQUIRED(a)Explain what a trade discount is.……………………………………………………………………………………………….……………………………………………………………………………………………….[1](b)Interpret the entries on the following dates.(i)12 February 2024…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[2](ii)23 February 2024……………………………………………………………………………………………………………………………………………………………………………………[1](c)Calculate the rate of discount on 12 February 2024.

3 [Turn overCHIJSEC/2023/PRELIM/4E5N/POA/7087/P1 ……………………………………………………………………………………………….……………………………………………………………………………………………….[1](d)Identify the source document used on the following dates.(i)4 February 2024…………………………………………………………………………………………[1](ii)23 February 2024…………………………………………………………………………………………[1](e)State two non-accounting information Thomas Trading should consider when deciding which supplier to buy from.……………………………………………………………………………………………….……………………………………………………………………………………………….[2][Total: 9]

4 CHIJSEC/2024/PRELIM/4E5N/POA/7087/P1 2Zhi Heng operates a pet supplies business. He supplied the following information for the year ended 31 March 2024.Units$Inventory as at 1 April 20235002 700Sales revenue for the year ended 31 March 20241 2307 600During the year ended 31 March 2024, the following purchases were made.1 July 2023200 units for $1 450 from Ron.15 October 2023350 units for $1 900 from Qi.14 February 2024180 units for $1 200 from Le.17 March 2024100 units for $700 from Xi.Additional information:1.Zhi Heng uses the First-In-First-Out (FIFO) method of inventory valuation.2.All sales and purchases were made on credit.3.The net realisable value of the inventory as at 31 March 2024 was $500.REQUIRED(a)State how inventory is valued.……………………………………………………………………………………………….[1](b)Calculate the total cost of sales for the year ended 31 March 2024.……………………………………………………………………………………………….……………………………………………………………………………………………….[2](c)Prepare journal entries to adjust the ending inventory value as at 31 March 2024.JournalDateParticularsDrCr

5 [Turn overCHIJSEC/2023/PRELIM/4E5N/POA/7087/P1 $$[2](d)State the effect and amount on profit for the year ended 31 March 2024 if the ending inventory was not adjusted.……………………………………………………………………………………………….[1]The rate of inventory turnover for the year ended 31 March 2023 was 6 times. REQUIRED(e)Calculate the rate of inventory turnover for the year ended 31 March 2024.……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….[2](f)Comment on rate of inventory turnover over the two years ended 31 March 2023 and 2024.……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….[3][Total: 11]

6 CHIJSEC/2024/PRELIM/4E5N/POA/7087/P1 3Chloe runs a minimart. The business rents out a part of the minimart to Jude for $1 200 per month.Chloe provided the following information for the year ended 30 June 2024.Account balances at 1 July 2023$Salaries expense payable600On 28 June 2024, the business paid $8 000 salaries through an electronic bank transfer. On this date, the business also received rental income by cheque.Account balances at 30 June 2024$Rental income received in advance from Jude400Salaries expense payable200REQUIRED(a)Calculate the amount of rental income to be shown in the statement of financial performance for the year ended 30 June 2024.……………………………………………………………………………………………….……………………………………………………………………………………………….[1](b)Calculate the amount of rental income received by cheque on 28 June 2024.……………………………………………………………………………………………….……………………………………………………………………………………………….[2](c)Prepare journal entries to record the salaries owing as at 30 June 2024 and the closing entries at the end of the financial year. JournalDateParticularsDrCr$$

7 [Turn overCHIJSEC/2023/PRELIM/4E5N/POA/7087/P1 [4](d)State the accounting theory that is being applied when accounting for salaries expense.……………………………………………………………………………………………….[1](e)State the effects and amounts on the profit for the year and liabilities if the rental income at the end of the financial year was not adjusted.……………………………………………………………………………………………….……………………………………………………………………………………………….[2](f)State two internal control measures a business may use to safeguard cash.……………………………………………………………………………………………….……………………………………………………………………………………………….[2][Total: 12]

8 CHIJSEC/2024/PRELIM/4E5N/POA/7087/P1 4Benton, a sole proprietor, discovered the following errors on 31 December 2023, after the financial statements were prepared.1The return of goods worth $560 by Larry, a credit customer, was debited to Larry’s account and credited to sales returns account.2A purchase of a printer worth $300 by cheque has been recorded in the office supplies expense account.The profit for the year ended 31 December 2023 before the errors were discovered was $800.REQUIRED(a)Complete the table to show how error 1 should be corrected.ErrorAccount to be debitedAccount to be creditedAmount ($)1[3](b)Calculate the adjusted profit or loss for the year ended 31 December 2023.……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….[2](c)State the accounting theory which must be applied when accounting for the sale and delivery of goods.……………………………………………………………………………………………….[1](d)Explain the limitation of a balanced trial balance.……………………………………………………………………………………………….……………………………………………………………………………………………….……………………………………………………………………………………………….

9 [Turn overCHIJSEC/2023/PRELIM/4E5N/POA/7087/P1 ……………………………………………………………………………………………….[2][Total: 8][END OF PAPER]

O CONVENT OF THE HOLY INFANT JESUS SECONDARY Preliminary Examination in preparation for the General Certificate of Education Ordinary Level 2024 CANDIDATE NAME ANSWER SCHEME CLASS REGISTER NUMBER PRINCIPLES OF ACCOUNTS Paper 1 Candidates answer on the Question Paper. No Additional Materials are required. 7087/01 27 August 2024 1 hour READ THESE INSTRUCTIONS FIRST Write your name, class and register number in the spaces provided on the work you hand in. Write in dark blue or black pen. You may use an HP pencil for rough working. Do not use staples, paper clips, glue, correction fluid or correction tape. Answer all questions. You may use a calculator. Where layouts are to be completed, you may need all the lines for your answer. The businesses mentioned in this question