2022 QTSS 4E5NA Prelims P1 QNS

[Turn over Name: …………….………………………………….. ( ) Class: 5A Queenstown Secondary School Preliminary Examination 2022 Secondary Five Normal (Academic) Principles of Accounts Paper 1 7087/01 26 August 2022 Time: 1040 – 1140 Friday Duration: 1 hour Setter: Mdm Farhati Ahmad Candidate answer on the Question Paper. No Additional Materials are required. 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. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 4 questions and 9 printed pages. For Examiner’s Use Q1 /10 Q2 /10 Q3 /10 Q4 /10 TOTAL /40

2 1 Wanda runs Scarlet Witch Bakery. She rents a shop to expand her business. Her business has a financial year end of 31 March. The following information has been provided. Rent expense account Date Particulars Debit $ Credit $ Balance $ 2021 Apr 1 Rent expense payable 600 600 Cr 2022 Jan 31 Cash at bank 30 500 29 900 Dr Mar 31 Prepaid rent expense 5 900 24 000 Dr 31 Income summary 24 000 REQUIRED (a) Interpret the entries on the following dates. (i) 1 April 2021 …………………………………………………………………………………. ………………………………………………………………………............[1] (ii) 31 March 2022 …………………………………………………………………………………. .………………………………………………………………………………… …………………………………………………………………………………. …………………………………………………………………...................[2]

3 [Turn over On 1 April 2021, Scarlet Witch Bakery has $800 of commission received in advance. During the year ended 31 March 2022, the business received cheques amounting to $4 200 for commission income. On 31 March 2022, the business still has not received $1 200 of commission income earned. REQUIRED (b) Calculate the amount of commission income earned for the year ended 31 March 2022. Show your workings clearly. ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………[3] (c) Prepare journal entries to adjust the commission income for the year ended 31 March 2022. A narration is not required. Journal Debit $ Credit $ [2] (d) State and explain the accounting theory that is applied when adjusting the commission income for the year ended 31 March 2022. Name: …………………………………………………………………………...[1] Explanation: ………………………………………………………………………. ……………………………………………………………………………………[1] [Total:10]

4 2 The following trial balance was extracted from the books of Dr Strange Ltd on 31 July 2022. $ Sales revenue 51 500 Cost of sales 25 600 Motor vehicles 29 700