Meridian Sec 2024 POA P2 QP

Name:Class: Sec _____Index No.: _______4E5N MERIDIAN SECONDARY SCHOOL PRELIMINARY EXAMINATION 2024PRINCIPLES OF ACCOUNTS Paper 2 7087/02 23 August 2024SECONDARY 4 EXPRESS / 5 NORMAL (ACADEMIC) 2 hoursCandidates answer on the Question Paper.Additional Materials: Insert READ THESE INSTRUCTIONS FIRSTWrite your name, class and index number 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 the brackets [ ] at the end of each question or part question.The total number of marks for this paper is 60. For Examiner’s UseTotal Marks This document consists of 14 printed pages and 1 insert.[Turn over

2 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) 1Refer to the Insert for data for Question 1.REQUIRED(a)Prepare the statement of financial performance for the year ended 31 December 2023.Wong’s AdvertisingStatement of Financial Performance for the year ended 31 December 2023…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

3 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… [8] [Turn over

4 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) (b)Prepare the statement of financial position as at 31 December 2023. Wong’s AdvertisingStatement of Financial Position as at 31 December 2023…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

5 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… [12] [Total: 20][Turn over

6 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) 2ZH sold toiletries to Daily Supermarket on credit. As Daily Supermarket has settled payment for the previous month, there is no balance in its account on 1 August 2023.The following transactions took place in August 2023. 2023Aug 2ZH sold goods at a list price of $4 000 less 10% trade discount to Daily Supermarket. The cost of the goods sold was $2 000.Aug 5Aug 15Goods at list price of $600 was returned by Daily Supermarket. The cost of the returned goods was $300. These goods were bought on 2 August.ZH received a cheque for the amount outstanding less cash discount at 5%.(a)Prepare Daily Supermarket account in the books of ZH for the month of August 2023.Daily Supermarket account…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[4](b)State one difference between trade discount and cash discount.………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[2]

7 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/02) DY is an investor who wishes to invest in a fashion business. The following information on two businesses, Style Right and Fashion Dream, for the financial year ended 31 December 2023, was provided.Both businesses sold goods on credit only.Style Right Fashion Dream $ $Sales revenue320 000440 000Cost of sales 82 500130 000Average Trade receivables 70 000 30 000(c)(i) Calculate the rate of trade receivables turnover and trade receivables collection period for Fashion Dream. Show your answer to two decimal places. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………[2] Style RightFashion DreamRate of trade receivables turnover4.57 times?Trade receivables collection period79.84 days?(ii) Comment on the management of the trade receivables between b