Presbyterian High 2024 POA Paper 1 and 2 with Answers

Name- ( ) Class PRESBYTERIAN HIGH SCHOOL PRINCIPLES OF ACCOUNTS 7087/01 PAPER 1 23 August 2024 1 hour PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL 2024 SECONDARY FOUR EXPRESS / FIVE NORMAL PRELIMINARY EXAMINATION Candidates answer on the Question Paper. No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your name, index number and class 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, glue or correction fluid. The use of an approved calculator is allowed. DO NOT WRITE ON ANY BARCODES. Answer all questions. The businesses described in this question paper are entirely fictitious. The number of marks is given in brackets [ 1 at the end of each question or part question. Setter: Miss Chee Bee Seok Vetter: Mr Ha Yeong Fook This document consists of 9 printed pages. Answer all questions. 1. Janice imports hand-embroidered cushion covers from China to sell at her store. On 12 July 2023, she received the following invoice from Si Yun Pte. Ltd. $ 2 000 sets of cushion covers 4 500 Freight, insurance and customs 100 In addition, Janice paid for the following: i) Packing of cushion covers into gift boxes $300 ii) Design of gift box by Art student $100 iii) Promotion pamphlets $150 REQUIRED (a) Calculate the cost of this batch of inventory. [1] Janice provided the following information on her inventory for the month of August 2023. Date Quantity (pieces) Cost ($) Selling price ($) August 1 Unsold cushion covers 800 2 400 - 4 Cushion covers bought on credit , 1 000 2 770 - 10 Cushion covers bought for cash 2 000 2 500 - 12 Cushion covers sold on credit 800 - 4 500 17 Cushion covers imported 3 000 8 100 - 22 Cushion covers sold for cash 3 000 - 12 000 Janice uses First-in, First-out inventory management. REQUIRED (b) Calculate the cost of sales for the month of August 2023. [2]

On 31 August 2023, a fire took place at Janice's store. She discovered that one-third of her inventory was damaged and had to be discarded. The balance of cushion covers had to be repacked at a cost of $200. She was still able to sell them for $6 000. REQUIRED (c) Using an accounting theory, explain how inventory should be valued. [2] (d) Prepare journal entries to record the impairment loss on inventory on 31 August 2023. Narration is not required. [2] Journal Date Particulars ' Dr $ Cr $ Janice made a claim against the insurance company on 1 September 2023. The insurance company agreed to pay Janice $1 000 for the loss in October 2023. REQUIRED (e) Prepare journal entries to account for the insurance claim. Narration is not required. [2] Journal Date Particulars Dr $ Cr $ (f) State how profit for the month of August would be affected by the fire and insurance claim. [1] Janice shared the following information provided by her accountant. Year-ended 30 June 2022 30 June 2023 30 June 2024 Rate of inventory turnover 10.8 times 9.6 times 8.8 times REQUIRED (g) (i) Comment on the above trend of rate of inventory turnover. [2] (ii) State one measure Janice can take to improve the rate of inventory turnover. [1] , [Total: 13]

5 6 2. The following cash at bank account was extracted from Juliana's books. (b) Prepare a bank reconciliation statement as at 30 April 2024 to reconcile the balances in bank statement and updated cash at bank. [4] Cash at Bank account Cheque Dr Cr ; Balance 2024 number ' (.$), , .($) _t_ _M Apr 1 Balance b/d .. 4._ 420 Cr 4 8 ' Trade payable — Joel 1224 1 11 Sales revenue 2 500 16 Rent expense 1225 1 20 , Trade receivable — John 840 25 Inventory 1226 , 28 Trade receivable — Jim + 420 30 a Equipment 1227 .2.. 1 On 2 May 2024, Juliana received the bank statement below. 2024 Apr 1 Balance b/d Withdrawal ($) 2 Cheque 1222 1 420 5 , Direct debit: Utilities bills 330 9 Cheque 1224 1 000 11 Cash deposited 20 Direct credit: Commission 24 Cheque deposited 28 Cheque returned 840 28 Bank interest t 29 Cheque 1226 640 000 , 1 800 1 I 1 1 640 i 1 1 - - 4 200 - i Deposits I Balance ($) ($) 1 000 Cr 420 Dr 750 Dr 1 750 Dr 2 500 1 750Cr 200 950 Cr 840 1 790 Cr 950 Cr 201 976 Cr", 330 Cr REQUIRED (a) Update the cash at bank account and bring the balance to May 1, 2024. [5] Cash at Bank account Date Particulars Dr $ Cr $ Balance $ The bookkeeper calculated the profit for the year to be $13 200 prior to performing bank reconciliation. REQUIRED (c) Calculated the profit after performing bank reconciliation. [2] Bank reconciliation is a form of internal control to safeguard the asset of a business. REQUIRED (d) Explain another purpose of internal control. [1] [Total: 12]

7 3 Joshua provided the following information on his business performance for the year ended 30 June 2024. $ Joshua provided the past two Year ended 8 years profitability ratios. 30 June 2022 30 June 2023 Sales revenue Sales returns 280 000 4 000 Mark-up on cost 48.66% 46.38% Cost of sales 191 406 Profit margin 13.88% 13.03% Expenses incurred for the year 51 060 Returns on equity 30.54% 31.06% Equity on 1 July 2023 100 000 Equity on 30 June 2024 110 300 REQUIRED (a) Calculate the following, leaving your answers to two decimal places (I) Mark-up on cost (ii) Profit margin (iii) Returns on equity [1] [1] [1] REQUIRED (b) Comment on the profitability trend of Joshua's business. [5] (d) Suggest one way Joshua can improve the returns on equity. [1] C ' 1 [Total: 9]

(.. 9 4. Josephine included her credit sales revenue as her income even though the customers have yet to pay for the goods delivered. REQUIRED (a) Using an accounting theory, explain if Josephine has correctly reported her sales revenue. , Besides selling inventory, Josephine earns a 10% commission based on sales of potted plants belonging to Jeremy. She provided the following information relating to the commission income for the year ended 30 June 2024. 2023 July 1 Commission earned but not received, $500. Dec 28 Jeremy paid Josephine commission of $1 800 via bank transfer. 2024 Jun 12 Jeremy paid Josephine commission of $1 440 via bank transfer. Jun 30 The sales of potted plants for the year ended 30 June 2024 was $30 000. REQUIRED (b) Prepare journal entries to record the above and close the commission income for the year ended 30 June 2024. Narrations are not required. Journal Date Particulars Dr $ Cr $ 1 4t) 14I I ( co iittomt 900 ---C 0 plm iTsi9A ;to re(eNikSit coo De49 Cask Ast ha.* ig o..9 Copoi;SVoil ;ii tomR (too lot4 lamL Call, at 641, ilftfo ( 9fti 4110Sio A I‘A(DeV41 11410 /kAi 0 (ofri A r ;felon ii coPq 1 .A(044 24/si 4 NV • END OF PAPER [2] [4] [Total: 6]

1.? Name. ( ) Class. PRESBYTERIAN HIGH SCHOOL PRINCIPLES OF ACCOUNTS 7087/01 PAPER 1 16 August 2024 Friday 1 hour PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL PRESBYTERIAN HIGH SCHOOL 2024 SECONDARY FOUR EXPRESS / FIVE NORMAL PRELIMINARY EXAMINATION ANSWER SCHEME Setter: Miss Chee Bee Seok Vetter: Mr Ha Yeong Fook This document consists of 9 printed pages. 2 Answer all questions. 1. Janice imports hand-embroidered cushion covers from China to sell at her store. On 12 July 202