Tampines Sec 2024 POA Paper 2 with ANS

This document consists of 12 printed pages and 1 insert. TAMPINES SECONDARY SCHOOLSecondary Four Normal AcademicPRELIMINARY EXAMINATION 2024NAMECLASSREGISTER NUMBER PRINCIPLES OF ACCOUNTS 7086/02 Paper 2 7 August 2024 2 hoursCandidates answer on the Question Paper. Additional Materials: InsertREAD THESE INSTRUCTIONS FIRSTFor Examiner’s UseWrite your name, class and register number on all the work you hand in. 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 the questions.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 number of marks for this paper is 60. [Turn over NA

2Answer all questions.1Refer to the Insert for data for Question 1.REQUIRED(a) Prepare the statement of financial performance for the year ended 30 June 2024.Fantastic ServicesStatement of Financial Performance for the year ended 30 June 2024………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[8]

3(b) Prepare the statement of financial position as at 30 June 2024.Fantastic ServicesStatement of Financial Position as at 30 June 2024………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

4………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[12][Total: 20]

52Ning owns a trading business with a financial year end of 30 June.On 1 October 2023, the business purchased an air conditioning system and paid cheques for the following expenditures.$Cost of air conditioning system8 550Installation cost 90Air conditioning system maintenance services (4 times within 12 months) 360REQUIRED(a)Explain what is meant by capital expenditure.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...[2](b)Explain what is meant by revenue expenditure.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...[2](c)Calculate the cost of the air conditioning system to be recorded in the statement of financial position.…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...[1]The air conditioning system is to be depreciated over its useful life.REQUIRED(d)Define the term depreciation.…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...[1]

6(e)State the accounting theory adhere to when a business depreciates its non-current assets using the same methods and estimates over time.………………………………………………………………………………………………...[1]As at 30 June 2024, $90 of air conditioning maintenance services remains unutilised.REQUIRED(f)Calculate the amount of air conditioning maintenance services expense the business incurred for the year ended 30 June 2024.…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...[1](g)Explain how the air conditioning maintenance services expense is treated according to the matching theory.……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...[2][Total: 10]

73The financial year of Ann’s trading business ends on 30 June. The following information is provided.1 July 2023$30 June 2024$Commission income received in advance500Commission income receivable800During the year, commission income of $9700 was received by bank transfer.REQUIRED(a)Prepare journal entries to account for commission income for the year ended 30 June 2024, including the closing of the commission income. Narrations are not required.JournalDate2023ParticularsDebit($)Credit($) [8](b)Define accrual basis of accounting.………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...[1]

8Ann planned to expand her business and was considering taking a bank loan or a bank overdraft.REQUIRED(c)State one difference between a bank loan and a bank overdraft.…………………………………………………………………………………………………………………………