Meridian Sec 2024 POA P1 QP

Name:Class: Sec _____Index No.: _______4E5N MERIDIAN SECONDARY SCHOOL PRELIMINARY EXAMINATION 2024PRINCIPLES OF ACCOUNTS Paper 1 7087/01 22 August 2024SECONDARY 4 EXPRESS / 5 NORMAL (ACADEMIC) 1 hourCandidates answer on the Question Paper.No Additional Materials are required. 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 40. For Examiner’s UseTotal Marks This document consists of 10 printed pages.[Turn over

2 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) 1(a) (i) State the two roles of accountants.……………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [2](ii) State and explain one accounting ethic accountants must uphold.……………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [2](b)State one stakeholder and explain why the stakeholder is interested in the accounting information of a business. ……………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [2]

3 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) (c)State the five stages in the accounting information system.………………………………………………………………………………………1.Source documents………………………………………………………………………………………………2.……..……………………………………………………………………………………….3.………………………………………………………………………………………………4. ………………………………………………………………………………………………5. Financial statements………………………………………………………………………………………….. [3](d)State and explain the accounting theory applied when recording drawings.………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..… [2] [Total: 11]

4 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) 2The following cash at bank account was extracted from DW Traders for the month of September 2023.Cash at bank accountDateParticularsCheque NumberDebitCreditBalance2023$$$Sep 1Balance b/d7 780Dr3Utilities expense724225507 230Dr9Hong Hui 2 2009 430 Dr10Sales revenue8 44017 870Dr15Rent expense724234 90012 970 Dr24Seng Yun724243 2809 690 Dr28Marianne Ho4 170 13 860Dr29WK Retail724252 40011 460 Dr30CH Agency7 54019 000 DrOct 1Balance b/d19 000 DrBank StatementDateParticularsWithdrawalDepositBalance2023$$$Sep 1Balance b/d 2 080Cr2Cheque deposit5 700 7 780 Cr9Cheque deposit2 2009 980 Cr17Cheque no: 724234 0905 890 Cr20Cash8 440 14 330Cr25Cheque no: 724243 28011 050 Cr28Cheque deposit4 17015 220Cr29Rejected cheque 4 17011 050 Cr30Interest 4011 090 CrIt was discovered that the accountant of DW Traders had incorrectly recorded the amount for cheque number 72423 in the business’s cash at bank account.

5 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) REQUIRED(a)Update the cash at bank account for the month of September 2023.Cash at bank account………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [4](b)Prepare the bank reconciliation statement as at 30 September 2023.Bank reconciliation statement as at 30 September 2023………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [4]

6 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) (c)The business’s profit for the month of September 2023 was $8 400. Calculate the adjusted profit for the month after bank reconciliation.………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [2][Total: 10]

7 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) 3(a)Explain one difference between a capital expenditure and a revenue expenditure.………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..… [2]SC runs a food catering business, SC food. The business purchased two motor vehicles at $60 000 each on 1 January 2022. One motor vehicle was sold on 7 February 2023 and a cheque of $10 000 was received on the same day. A new motor vehicle costing $88 000 was bought on credit from Lee Motors on 1 April 2023.The business’ policy is 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 is provided in the year of sale. The financial year end of the business is 31 December each year. REQUIRED(b) (i) State and explain, with an accounting theory, why non-current assets are depreciated. ……………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [2]

8 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) (ii)Calculate the gain or loss on sale of motor vehicle on 7 February 2023. ……………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [3](iii)State the effect on profit if part (ii) is not adjusted for the year ended 31 December 2023. ………………………………………………………………………………………………………………………………………………………………………………….. [1](iv)Prepare the motor vehicles account for the year ended 31 December 2023. Motor vehicles account……………………………………………………………………………………………………………………………………………………………………………………..………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. [3][Total: 11]

9 MSS 4E/5NA Preliminary Examinations 2024Principles of Accounts (7087/01) 4The following balances were extracted from the books of Wonderful Studio on 31 December 2023. $Trade receivables9 000Bank overdraft2 100Prepaid rental expense7 400Trade payables 10 000Current portion of long-term borrowings 16 000Long-term borrowings 6