2022 QTSS 4E5NA Prelims P2 ANS

2022 QTSS Prelims 5NA P2 - Marking Scheme 1a Statement financial performance for the year ended 31 December 2021 $ $ Consultancy fee revenue 60800 Other income Commission income 1850 [1] 62650 Less: Other expenses Wages and salaries 13000 Rent (14000-550) 13450 [1] General expenses (2250+350) 2600 [1] Interest expense (5% x 20000) 1000 [1] Impairment loss on trade receivables [1420-(500-400)] [2] 1320 Depreciation expense of office equipment 3750 [1] (15%x25000 ) Depreciation expense of motor vehicles 11455 [1] (10%x(145000-30450) 46575 Profit for the year 16075 [8] Top Gun Consultancy

2022 QTSS Prelims 5NA P2 - Marking Scheme 1b $ $ $ $ Assets Non-current assets Cost Accumulated depreciation Net book value Motor vehicles 145000 41905 103095 [1] Office equipment 25000 10750 14250 Total non-current assets 117345 Current assets Trade receivables (71400-400) 71000 [1] Less: Allowance for impairment of trade receivables (2%x71000) 1420 [1] Net trade receivables (not compulsory) 69580 Prepaid rent expenses 550 [1] Cash in hand 580 Total current assets 70710 Total assets 188055 Equity and Liabilities Shareholders' equity Issued share capital, 100 000 ordinary shares 100000 [1] Retained earnings (40000+16075 [OF][1]-7000[1]) 49075 Total equity 149075 Non-current liability Long term borrowings (20000-2000) # 18000 Current liabilities Trade payables 10330 General expense payable 350 [1] Interest payable (1000-625) 375 [1] Bank overdraft 925 [1] Current portion of Long term borrowings # 2000 Dividends payable (0.07X100000) 7000 [1] Total current liabilities 20980 Total equity and liabilities 188055 #both must be present to be awarded 1 mark [12] Top Gun Consultancy Statement of financial position as at 31 December 2021

2022 QTSS Prelims 5NA P2 - Marking Scheme

2022 QTSS Prelims 5NA P2 - Marking Scheme

2ai ii b Date Particulars Debit ($) Credit ($) Bal ($) 2022 Mar-31 Balance b/d 555 Dr[1] Mar-31 Bradley Ltd 1200[1] 1755 Dr Mar-31 Rent (error) 20[1] 1735 Dr Mar-31 Trade receivable - Rooster Ltd (dishonoured cheque) 370 [1] 1365 Dr Mar-31 Bank charges 20[1] 1345 Dr Apr-01 Balance b/d 1345 Dr c Maverick Trading $ Balance as per bank statement 2020 [1] Add: Deposit in transit - Goose Co. 75 [1] Less : Cheque not yet presented – Insurance 750 [1] Adjusted balance as per cash at bank account 1345 [1]OF d Internal controls: - segregation of duties - custody of cash - authorisation [Any 2 of the above] Cash at Bank Bank reconciliation statement as at 31 March 2022 March 10 - Maverick Trading sold goods for $240 and received cheque / deposited the cash into business' bank. [1] March 12 - Owner took out $350 from the business' bank account for personal use. [1]

3a 30-Jun-20 30-Jun-21 30-Jun-22 Total current assets 14500 18900 Total current liabilities 6500 10000 i. Working capital 8000 [1] 8900 [1] CA- CL ii Current ratio 3.52 2.23 [1] 1.89 [1] CA/CL iii Qu