Zhonghua POA 2024 5N Prelim Paper 1 answer

1 ZHONGHUA SECONDARY SCHOOL PRELIMINARY EXAMINATION 2024 SECONDARY 5 NORMAL ACADEMIC Candidate’s Name Class Register Number Suggested Making Scheme PRINCIPLES OF ACCOUNTS 7087/01 Paper 1 28 August 2024 1 hour READ THESE INSTRUCTIONS FIRST Write your name, class and register number on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any rough working. Do not use paper clips, glue or correction fluid. Answer all questions. You may use a calculator. The businesses mentioned in this question paper are entirely fictitious. Where the columnar format is used, the running balance column should be updated for the first and last entries. Where applicable, the balance should be brought down to the next financial year. 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. Setter: Mr John Kok Vetters: Ms Teo Jing Zhi & Ms Destiny See This question paper consists of 9 printed pages (including this cover page) For examiner’s Use: Question Score 1 / 15 2 / 9 3 / 16 Total / 40

2 Answer all questions. 1 (a) Source document [1] (b) Objectivity theory. [1] Transactions are recorded based on information that is reliable and verifiable, where source documents serves this purpose. [1] (c) Monetary theory. [1] Only business transactions that can be measured in monetary terms are recorded while reputation is not measured in monetary terms. [1] (d) General Journal [6] Date Particulars Debit Credit 2024 $ $ March 31 Trade payable, Jackson LLP 2 000 [1] Trade payable, Jason Ltd 2 000 [1] March 31 Discount allowed 50 [1] Trade receivable, Lim Pte Ltd 50 [1] March 31 Cash at bank 1 400 [1] Commission income 1 400 [1] (e) Tylo Ltd Statement to show adjusted profit for the year ended 31 March 2024 Unadjusted loss for the year (522) [1] Add: Commission income 1 400 [1] 878 Less: Discount allowed 50 [1] Adjusted profit for the year 828 [1] [Total: 15]

3 2 (a)(i) Purchased inventory amounting to $35 000 from Hipster Co on credit. [1] (a)(ii) Inventory worth $3 000 was used for advertising purpose. [1] (b) The entry on 12 March 2024 [1] was an error as drawings should result in a reduction in inventory account and should therefore appear in the Cr column. [1] (c) Ending inventory = 53000 – 1000 = 52 000 [1] (d) Cost of sales = (10000+25000+48000) = 83 000 [1] Day sales in inventory = [(60000+52000)/2]/83000 x 365 [1] = 246.27 days [1] (e) It means Chic Co. takes 246.27 days to sell its average inventory. [1] [Total: 9]