Zhonghua POA 2024 Sec 5 Prelim P2 Insert

1 ZHONGHUA SECONDARY SCHOOL PRELIMINARY EXAMINATION 2024 SECONDARY 5 NORMAL ACADEMIC Candidate’s Name Class Register Number PRINCIPLES OF ACCOUNTS 7087/02 INSERT 9 September 2024 2 hours READ THESE INSTRUCTIONS FIRST This insert contains the data for Question 1. Setter: Mr John Kok Vetter: Ms Teo Jing Zhi & Ms Destiny See This question paper consists of 3 printed pages (including this cover page) [Turn over

2 Data for Question 1 1 The following balances were extracted from the books of Desire Diamonds on 30 June 2024. $ Capital 249 520 Cost of sales 60 700 Sales revenue 170 270 Sales returns 9 000 Advertising 22 700 Salaries and wages 51 050 Loan interest 1 200 General expenses 10 380 Rent income 18 000 Trade receivables 31 950 Trade payables 20 650 Discount allowed 4 800 Discount received 1 440 8% Bank loan 50 000 Cash at bank 15 700 Inventory 10 300 Fixtures and fittings 72 000 Plant and equipment 288 000 Accumulated depreciation: Fixtures and fittings 12 000 Plant and equipment 50 900 Allowance for impairment of trade receivables 5 000

3 Additional information 1 A fire broke out and destroyed 30% of the inventory on 25 June 2024. Insurance claim was filed and agreement of reimbursement of $0.40 to every dollar of goods destroyed was made on 30 June 2024. No records were made with regard to this. After a full stock check, the market value of the inventory on 30 June 2024 amounted to $6 500. 2 The rent income covered an 18 months period ending 31 December 2024. 3 Salaries and wages amounted to $5 000 per month. 4 A sales invoice with a list price of $1 000 was not recorded even though the cost of goods portion was recorded. There was a trade discount of 5% for this transaction. 5 Fixtures and fittings was to be depreciated at 10% per annum using the straight -line method. 6 Plant and equipment was to be depreciated at 5% per annum using the reducing- balance method. 7 Single Strength, a trade receivable, went bankrupt and its debt of $3 000 was to be written off. 8 A review at year end estimated that 5% of the trade receivables was uncollectible. 9 The 5-year 8% bank loan was taken up on 1 January 2024. The loan and interest are payable every year on 1 January.

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