2024 BPGHS S5 POA P1 (MS)

Name of Candidate: …………………………………………… ( ) Class: …………… This paper consists of 6 printed pages [Turn over BUKIT PANJANG GOVERNMENT HIGH SCHOOL PRELIMINARY EXAMINATION 2024 SECONDARY 5 GCE 'O' LEVEL SYLLABUS PRINCIPLES OF ACCOUNTS Paper 1 7087/01 15 August, 2024 1 hour 0750 h – 0850 h READ THESE INSTRUCTIONS FIRST Do not turn over the cover page until you are told to do so. Write in dark blue or black pen on both sides of the paper. You may use an HB pencil for any diagrams or graphs. Do not use staples, paper chips, 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. FOR EXAMINER’S USE Question 1 / 16 Question 2 / 8 Question 3 / 16 Total: / 40 Candidates answer on the Question Paper No Additional Materials are required. MARKING SCHEME

2 © BPGHS Preliminary Examination 2024 7087/01 1(a) Any one of the followings: [1 – capital expenditure, 1 – revenue expenditure] • Capital expenditure refers to the cost of buying and bringing the non-current assets to its intended use, while revenue expenditure refers to the costs to operate, repair and maintain the non-current asset in working condition. • Capital expenditure provide benefits for more than 1 year, while revenue expenditure provides benefits which will be used within 1 year. • Capital expenditure is recorded as non-current asset in the statement of financial position, while revenue expenditure is recorded as expense in the statement of financial performance. 1(b) Journal Date 2024 Particulars Debit $ Credit $ Jan 1 Motor vehicles (120 000 + 6 500 + 2 800) 129 300 [1] Cash at bank 129 300 [1] Road tax expense 1 250 [1] Cash at bank 1 250 [1] 1(c) (i) Net book value = Cost – Accumulated depreciation = $62 000 – $32 000 = $30 000 [1] (ii) Gain/loss on sales of NCA = Sales proceeds – NBV = $27 000 – $30 000 = $(3 000) loss [1] Note: Student must show whether is it a gain or loss on sales of NCA to be awarded the mark.

3 © BPGHS Preliminary Examination 2024 7087/01 [Turn over 1(d) Journal Date 2024 Particular Debit $ Credit $ Jun 30 Income summary 3 000 Sales of non-current asset 3 000 1(e) Net book value of remaining motor vehicles = $(275 000 – 92 250) – $30 000 = $152 750 [1] Depreciation expense for year ended 30 June 2024 = 20% x $152 750 = $30 550 [1] 1(f) Accounting theory Matching theory [1] Explanation The cost of using the non-current asset is recorded as depreciation expense and matched against the income earned from using the non-current assets in the same accounting period to determine the prof