SPS POA 2026 4E5NA P2 INSERT

NAMEFORM CLASSACAD CLASSINDEX NO. ST. PATRICK’S SCHOOLPRELIMINARY EXAMINATION 2026SUBJECT:Principles of AccountsDATE :14 August 2026(7087/02)LEVEL:Secondary 4 Exp/5NADURATION:2 hours INSERTREAD THESE INSTRUCTIONS FIRST.This insert contains the data for Question 1. This question paper consists of 2 printed pages including the cover page.

2 Data for Question 1Adrian, the owner of Advance Technology Company, provided the following balances of the business on 31 August 2026. $Fixtures and fittings189 000Motor vehicles80 810Accumulated depreciation: Fixtures and fittings59 080 Motor vehicles31 240Cash at bank Cash in hand1 7806 000(Credit)Capital, 1 September 202594 992Drawings9 270Discount received1 840Sales revenue602 360Cost of sales126 315Sales returns9 365Trade payables44 776Trade receivables95 700Inventory281 000Commission income16 210Salaries expense22 400Rent expense60 000General expense14 198Interest on bank loan7206% Bank loan, repayable 2030Allowance for impairment of trade receivables40 0002 500Additional information1As at 31 August 2026,Commission owing to the business was $4 725.Rent was paid for 15 months to 31 December 2026.The annual salaries was $30 000.2Following a review of the trade receivables, 4% of the trade receivables were estimated to be uncollectible.3Depreciation on non-current assets is based on the following methods:Fixtures and fittings are to be depreciated at a rate of 15% per annum using the straight-line method.Motor vehicles are to be depreciated at a rate of 20% per annum using the reducing-balance method.4Interest for the year on the 6% bank loan has not been paid in full.5One-quarter of the bank loan is to be repaid on 31 December 2026.6A fire broke out on 30 August 2026 and destroyed 25% of the inventory. The insurance company has agreed to cover the loss on 30 September 2026.

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