Woodlands Sec 4NA POA Prelim Paper 1 QP with ANS

NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC Name: ___________________________________( ) Class: ___________ WOODLANDS SECONDARY SCHOOL PRELIMINARY EXAMINATION 2022 NORMAL ACADEMIC Level: Sec 4 Normal Academic Marks: 40 Subject: Principles of Accounts Day: Friday Paper: 7086/01 Date: 5 August 2022 Duration: 1 hour Time: 10 45 – 11 45 READ THESE INSTRUCTIONS FIRST ___________________________________________________________________ Write down your name; register number and class on all the work you hand in. Write in dark blue or black pen. You may use an HB pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. DO NOT TURN THE PAGE UNTIL YOU ARE TOLD TO DO SO. This document consists of 9 printed pages and 1 blank page.

2 NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC 1 The following balances as at 31 March 2022 were extracted from the business of Shi Ting. $ Trade receivables 12 260 Bank loan 10 000 Commission income receivables 180 Trade payables 11 430 Inventory 12 850 Capital ? REQUIRED (a) State the accounting equation. [1] (b) Explain the meaning of each of the following terms: (i) assets [1] (ii) liabilities [1] (c) Using the accounting equation, calculate the value of capital as at 31 March 2022. [1]

3 NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC Shi Ting’s accountant wrongly recorded her personal car maintenance expenses of $230 into the motor vehicle expenses account. REQUIRED (d) Prepare a journal entry to correct this error. A narration is required. Journal Date Particulars DR CR 2022 $ $ Mar 31 [3] (e) State the effect of this error on profit for the year. [1] (f) State the two professional ethics that Shi Ting’s accountant should adhere to. [2] [Total: 10]

4 NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC 2 Raja buys and sells jeans on credit and started his business on 1 January 2020. Raja uses the FIFO (First in First Out) method of inventory valuation. The following transactions took place in January 2020. Jan 3 Bought 20 pairs of jeans costing $100 on credit from Cebu. Jan 5 Bought 10 pairs of jeans costing $60 on credit from Bambi. Jan 8 Bought 30 pairs of jeans costing $200 on credit from Shifu. Jan 10 Sold 30 pairs of jeans to Canva for $650. Jan 13 Bought 40 pairs of jeans costing $280 on credit from Pondy. Jan 15 Raja retur