Temasek Sec 2024 Prelims 5N POA P2 QP

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School. Name: Index Number: Class: _______ TEMASEK SECONDARY SCHOOL Preliminary Examination 2024 Secondary Five Normal Academic PRINCIPLES OF ACCOUNTS 7087/02 Paper 2 2 hours Candidates answer on the Question Paper. Additional Materials: Insert READ THESE INSTRUCTIONS FIRST Do not open the booklet until you are told to do so. Write your name, index number and class in the spaces at the top of this page. Write in dark blue or black pen. Do not use staples, paper clips, glue or correction fluid. The use of an approved calculator is allowed. Answer all 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. This document consists of 13 printed pages, 1 blank page and 1 insert.

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 2 1 Refer to the Insert for data for Question 1. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 July 2024. Zion Trading Pte Ltd Statement of financial performance for the year ended 31 July 2024

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 3 [10]

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 4 (b) Prepare the statement of financial position as at 31 July 2024. Zion Trading Pte Ltd Statement of financial performance for the year ended 31 July 2024

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 5 [10] [Total: 20]

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 6 2 On 1 April 2022, Vission Pte Ltd provided the following account balances. $ Share capital, 45 000 ordinary shares 90 000 Retained earnings 32 750 The financial year of Vission Pte Ltd ends on 31 March. The following transactions took place in 2023 and 2024. Date 2023 Mar 31 Dividends of $0.15 per share were declared and paid in full. Mar 31 Profit for the year was $7 500. 2024 Feb 1 5,000 ordinary shares were issued and fully paid at $2.50 per share. Mar 31 Dividends of $0.07 per share were declared and paid in full. Mar 31 Loss for the year was $2 800. REQUIRED (a) Define the following accounting theories: (i) objectivity [1] (ii) consistency [1] (b) State and explain one advantage a private limited company has as compared to a sole proprietorship business. [2]

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 7 (c) Prepare the share capital account for the years ended 31 March 2023 and 2024. [3] (d) Prepare the retained earnings account for the years ended 31 March 2023 and 2024. [5] [Total: 12]

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 8 3 John is a sole trader. When preparing the business financial statements for the year ended 30 June 2024, he discovered the following errors. 1 A cheque of $5 400 issued to credit supplier, Ben on 30 June 2024, had been recorded as $4 500. 2 Utilities for John’s private residence, $270, had been recorded as utilities of the business. 3 Credit sale of goods to Henny, $600, had been posted to the wrong sides of both sales revenue and Henny’s accounts. 4 Repairs on equipment had been understated by $80. REQUIRED (a) Prepare the journal entry to correct error 1. A narration is not required. [2] (b) Name and explain the accounting theory that is violated in error 2. [2]

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 9 The profit for the year ended 30 June 2024 was $12 000. REQUIRED (c) Prepare a statement to show the adjusted profit for the year ended 30 June 2024. [4] [Total: 8]

No part of the paper is to be reproduced without the approval of the Principal of Temasek Secondary School 10 4 Mohan Pte Ltd is a trader of luxury watches. Its financial year ends on 30 June. The following information has been extracted from the accounting books. 2024 $ Net sales revenue 223 900 Gross profit 96 300 Total operating expenses 60 700 Average equity 113 800 Average trade receivables 14 400 Additional information as follows: 2022 2023 2024 Mark-up on cost 68.92% 70.23% ? Gross profit margin 35.00% 39.99% ? Profit margin 21.46% 19.38% ? Return on equity 34.80% 32.77% ? Rate of trade receivables turnover 8.51 times 6.83 times 6.17 times REQUIRED (a) Compute the following ratios for the year ended 30 June 2024. Show your answers to two decimal places. (i) mark-up on cost [1] (ii) gross profit margin [1] (iii)profit margin [1] (iv)return on equity [1]