2022 QTSS 4E5NA Prelims P2 QNS

[Turn over Name: …………….………………………………….. ( ) Class: 5A Queenstown Secondary School Preliminary Examination 2022 Secondary Five Normal (Academic) Principles of Accounts Paper 2 7087/02 29 August 2022 Time: 0800 – 1000 Monday Duration: 2 hours Setter: Mdm Farhati Ahmad Additional Materials: Writing paper (5 sheets) READ THESE INSTRUCTIONS FIRST Write your name, class and index number on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use an HB pencil for rough working. Do not use staples, paper clips, glue or correction fluid. The use of approved calculator is allowed. Answer all questions. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 4 questions and 7 printed pages. For Examiner’s Use Q1 /20 Q2 /13 Q3 /13 Q4 /14 TOTAL /60

2 Answer all questions. 1 The following balances were extracted from the books of Top Gun Consultancy on 31 December 2021. $ Consultancy fee revenue 60 800 Wages and salaries 13 000 Rent 14 000 General expenses 2 250 Commission income 1 850 Motor vehicles 145 000 Accumulated depreciation of motor vehicles 30 450 Office equipment 25 000 Accumulated depreciation of office equipment 7 000 Trade receivables 71 400 Trade payables 10 330 5% bank loan repayable by June 2025 20 000 Interest paid on 5% bank loan 625 Allowance for impairment on trade receivables 500 Cash at bank 925 credit Cash in hand 580 Issued share capital, 100 000 ordinary shares 100 000 Retained earnings 1 January 2021 40 000 Additional information 1 Rent of $550 was paid in advance and general expense of $350 was owing. 2 10% of the loan is repayable in June 2022 and interest on the bank loan for the year has not been fully paid. 3 A customer who owed $400 has declared bankrupt. The business decided to write off the amount. 4 The allowance for impairment of trade receivables is to be maintained at 2% of trade receivables. 5 Office equipment is to be depreciated at 15% per annum using the straight- line method. 6 Motor vehicles are depreciated at 10% per annum using reducing -balance method. 7 A dividend of $0.07 per share had been declared and will be paid on 15 January 2022.

3 [Turn over REQUIRED (a) Prepare the statement of financial performance for the year ended 31 December 2021. [8] (b) Prepare the statement of financial position as at 31 December 2021. [12] [Total:20]

4 2 The cash at bank account and bank statement for Maverick Trading for the month of March 2022 were as follows. Cash at Bank Date Par