YCSS POA 2026 4E5N Prelim Paper2 Insert

[Turn over YUAN CHING SECONDARY SCHOOL Secondary Four Express / Five Normal Academic Course Preliminary Examination 2026 CANDIDATE NAME CLASS INDEX NUMBER PRINCIPLES OF ACCOUNTS Paper 2 INSERT 7087/02 28 August 2026 2 hours READ THESE INSTRUCTIONS FIRST This insert contains the data for Question 1. This paper consists of 2 printed pages.

2 Data for Question 1 Bella is the sole owner of Healthy Wellness , a business providing chiropractic treatment services. The following balances were extracted from the business on 31 July 2026: $ Equipment at cost 285 000 Fixtures and fittings at cost 73 000 Accumulated depreciation on equipment 102 600 Accumulated depreciation on fixtures & fittings 14 300 Service fee revenue 292 380 Capital, 1 August 2025 103 000 Drawings 1 670 4% bank loan repayable 2030 60 000 Trade payables 12 520 Trade receivables 22 000 Allowance for impairment of trade receivables 250 Loss on sale of non-current assets 7 500 Rental expense 65 000 Interest expense 1 600 Salaries expense 95 600 Advertising expenses 40 880 Discount received 3 750 Cash at bank (credit balance) 3 450 Additional information 1 At 31 July 2026, • Service fee revenue, $4 650, was receivable • Rental expense, $1 000, was prepaid 2 Equipment is to be depreciated at 20% per annum using the reducing-balance method. 3 Fixtures and fittings are to be depreciated at 10% per annum using the straight-line method, assuming a scrap value of $10 000. 4 The allowance for impairment of trade receivables is to be maintained at 4 % of trade receivables. 5 Loan interest for the year ended 31 July 2026 had not been fully paid. 6 One-quarter of the bank loan has to repaid by 31 July 2027. --- END OF PAPER ---