MSHS 2024 POA P2 MS

POA P2 Prelim 2024 1 Answer Key MARIS STELLA HIGH SCHOOL (SECONDARY) PRELIMINARY EXAMINATIONS 2024 SECONDARY 4 EXPRESS PRINCIPLES OF ACCOUNTS Paper 2 7087/02 22 August 2024 2 hours MARK SCHEME MAXIMUM MARK: 60

POA P2 Prelim 2024 2 Answer Key Question 1 [Total: 20] (a) Happiness Pte Limited Statement of financial performance for the year ended 31 May 2024 $ $ Sales revenue 642 000 Less: Sales returns 4 100 Net sales revenue 637 900 1 Less: Cost of sales 448 310 Gross profit 189 590 1 Other income Commission income (4400+600) 5 000 1 Discount received 1 830 6 830 ½ Less: Other expenses Interest expense 2 500 Utilities expense (7200 – 1200) 6 000 1 Wages and salaries (54220+1780) 56 000 1 Rent expense 72 000 Discount allowed 1 900 ½ Depreciation – Motor vehicles (0.1 X 240000) 24 000 1 Depreciation – Fixtures and fittings (0.2 X 57600) 11 520 1 Impairment loss on trade receivables * 1 550 1 Impairment loss on inventory 3 500 178 970 1 Profit for the year 17 450 [10] *N = 0.05 X (31400-1400) = 1500 N-(O-W) = 1500 – (1350-1400) = 1500 – (-50) = +1550

POA P2 Prelim 2024 3 Answer Key (b) Happiness Pte Limited Statement of Financial Position as at 31 May 2024 $ $ $ Assets Cost Accumulated depreciation Net book value Non-current assets Motor vehicles (48000+24000) 270 000 72 000 198 000 ½ Fixtures and fittings (6400+11520) 64 000 17 920 46 080 ½ 244 080 Current assets Inventory (83500-3500) 80 000 1 Trade receivables (31400 – 1400) 30 000 ½ Less: Allowance for impairment of trade receivables 1 500 28 500 ½ Commission income receivable 600 1 Prepaid utilities expense 1 200 110 300 1 Total assets 354 380 Equity and Liabilities Shareholders’ Equity Share capital, 110 000 ordinary shares 220 000 ½ Retained earnings (5000+17450-6600) 15 850 235 850 1 Non-current liabilities Long term borrowings 80 000 ½

POA P2 Prelim 2024 4 Answer Key Current liabilities Trade payables 9 150 Bank overdraft 1 000 ½ Wages and salaries payable 1 780 1 Current portion of long -term borrowings 20 000 ½ Dividends payable 6 600 38 530 1 Total equity and liabilities 354 380 [10] Question 2 [Total: 12] (a) Cash at bank account Date Particulars Dr $ Cr $ Balance $ 2024 Apr 30 Balance b/d 1 280 Dr Trade receivable - Timothy 1 500 [1] 2 780 Dr Rent expense 3 000 [1] 220 Cr Inventory (error) 1 800 [1] 1 580 Dr Trade receivable – Matthew ight (dishonoured) 2 000 [1] 420 Cr Bank charges 300 [1] 720 Cr May 1 Balance b/d 720 Cr [5] (b) Bank Reconciliation Statement as at 30 April 2023 $ Balance as per bank state