YCSS POA 2026 4E5N Prelim Paper2

[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 Candidates answer on the Question Paper. Additional Materials : Insert 7087/02 28 August 2026 2 hours READ THESE INSTRUCTIONS FIRST Write your name, class and index number in the spaces at the top of this page. Write in dark blue or black ink. 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 fictitious. The number of marks is given in brackets [ ] at the end of each question or part question. The total number of marks for this paper is 60. MARKS Total /60 This paper consists of 16 printed pages.

2 Answer all questions. 1 Refer to the Insert for data for Question 1. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 July 2026. Healthy Wellness Statement of financial performance for the year ended 31 July 2026 ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….……………………………………………………………..

3 [Turn over ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. …………………………….………………………………………………………..…………... [9]

4 (b) Prepare the statement of financial position as at 31 July 2026. Healthy Wellness Statement of financial position as at 31 July 2026 ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….……………………………………………………………..

5 [Turn over ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. …………………………….………………………………………………………..…………. [11] [Total: 20]

6 2 Marcus is a shareholder of Hunter Limited, a business that trades in electronics . Hunter Limited provided the following information for the financial years ended 30 April 2024, 2025 and 2026: 2024 2025 2026 $ $ $ Sales revenue 155 800 194 000 256 700 Cost of sales 132 430 164 900 196 600 Gross profit 23 370 35 890 60 100 Return on equity 23.3% 24.7% 26.9% Gross profit margin 15.0% 18.5% 23.4% Profit margin 9.0% 7.9% 6.7% Day sales in inventory 29.7 days 25.0 days 18.4 days REQUIRED (a) Calculate the mark-up on cost for the year ended 30 April 2026. Show your answers to two decimal places. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. …………………………….………………………………………………………..…………... [1] (b) Advise Marcus if he should continue to invest in Hunter Limited. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. …………………………….………………………………………………………..…………... [2]

7 [Turn over (c) Comment on the profitability of Hunter Limited over the three financial years ending 30 April 2024, 2025 and 2026. Use the information provided to support your answer. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. ……………………………………….…………………………………………………………….. …………………………….………………………………………………………..…………... [4] (d) Suggest one way in which Hunter Limited can improve their profit margin. ……………………………………….…………………………………………………………….. …………………………….………………………………………………………..…………... [1] (e) State one possible consequence if a