2024 BPGHS S5 POA P1 (QP)

Name of Candidate: …………………………………………… ( ) Class: …………… This paper consists of 10 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.

2 © BPGHS Preliminary Examination 2024 7087/01 1 Xin Catering specialises in food catering services. On 1 January 202 3, the business purchased a delivery van and paid the following by bank transfer. $ Purchase price of delivery van 120 000 Delivery cost of delivery van 6 500 Import tax 2 800 Annual road tax 1 250 REQUIRED (a) Explain the difference between capital expenditure and revenue expenditure. [2] (b) Prepare the journal entries to record the capital and revenue expenditures . Narrations are not required. Journal Date 2023 Particulars Debit $ Credit $ Jan 1 [4] The financial year end of Xin Catering ends on 30 June. The following balances were extracted on 1 July 2023. $ Motor vehicles 275 000 Accumulated depreciation of motor vehicles 92 250

3 © BPGHS Preliminary Examination 2024 7087/01 [Turn over On 1 October 2023, one of the motor vehicles was sold. The following ledger account was provided. Sales of non-current asset account Date Particular Debit Credit Balance 2023 $ $ $ Oct 1 Motor vehicles 62 000 62 000 Dr Oct 1 Accumulated depreciation of motor vehicles 32 000 ? Oct 1 Other receivable – Misty Trading 27 000 ? 2024 Jun 30 Income summary ? ? ? It is the company’s policy to depreciate motor vehicles at 20% per annum using the reducing- balance method. A full year’s depreciation is charged in the year of purchase and no depreciation in the year of sale. REQUIRED (c) Calculate the following for the motor vehicle that was sold. (i) Net book value [1] (ii) Gain or loss on sale of non-current asset [1] (d) Prepare the journal entries t hat took place on 30 June 2024. Narration is not required. Journal Date 2024 Particular Debit $ Cre