MSHS 2024 POA P2 INSERT

[Turn over MARIS STELLA HIGH SCHOOLPRELIMINARY EXAMINATIONSSECONDARY FOURPRINCIPLES OF ACCOUNTS7087/02Paper 222 August 2024 INSERT2 hoursREAD THESE INSTRUCTIONS FIRSTThis insert contains the data for Question 1. This document consists of 3 printed pages and 1 blank page.

2Data for Question 1The following balances were extracted from the books of Happiness Ptd Ltd on 31 May 2024. $ Motor vehicles at cost270 000Fixtures and fittings at cost64 000Accumulated depreciation of Motor vehicles48 000 Fixtures and fittings6 400Inventory83 500Sales revenue642 000Sales returns4 100Cost of sales448 310Trade receivables31 400Trade payables9 150Allowance for impairment of trade receivables1 350Cash at bank1 000CrCommission income4 400Interest expense2 500Utilities expense7 200Wages and salaries54 220Discount received1 830Rent expenses72 000Discount allowed1 900Share capital, 110 000 ordinary shares220 000Retained earnings 1 June 20235 000Bank loan100 000

3 [Turn over Additional information1Motor vehicles are to be depreciated at 10% using the straight-line method assuming a scrap value of $30 000.2Fixtures and fittings are to be depreciated at 20% per annum using the reducing-balance method. 3At 31 May 2024:(i)commission income, $600, had yet to be received(ii)utilities expense, $1 200, was prepaid(iii)wages and salaries. $1 780, were owing.4A debt of $ 1400 owed by a customer was found to be irrecoverable. The company decided to write this amount off.5It was decided that 5% of the trade receivables were unlikely to be collectible.6On 31 May 2024, goods costing $3 500 were damaged. The inventory has yet to be written down.7One fifth of the bank loan is to be repaid on 31 December 2024.8The company declared a dividend of $0.06 per share. This will be paid on 30 June 2024.

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