Woodlands Sec 4NA POA Prelim Paper 2 QP with Ans

Name: ____________________________( ) Class: ________ WOODLANDS SECONDARY SCHOOL PRELIMINARY EXAMINATION 2022 NORMAL ACADEMIC Level: Sec 4 Normal Academic Marks: 60 Subject: Principles of Accounts Day: Thursday Paper: 7086/02 Date: 11 August 2022 Duration: 2 hours Time: 10 00 – 12 00 Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST _____________________________________________________________________ Answer all questions on the answer booklet provided. At the end of the examination, fasten all your work securely together. 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. NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC

2 NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC This document consists of 7 printed pages and 1 blank page. Answer all questions. 1 Christine operates San Bookshop which buys and sells books. The following balances were extracted on 31 May 2022. $ Office equipment at cost 60 000 Motor vehicles at cost 120 000 Accumulated depreciation of office equipment 24 000 Accumulated depreciation of motor vehicles 18 000 Sales revenue 131 370 Sales returns 6 500 Cash at bank 4 780 Trade payables 18 300 Discount received 170 Allowance for impairment of trade receivables 780 Interest expense 2 500 Wages and salaries expenses 12 500 Drawings 1 600 Bank loan repayable in 2027 30 000 Cost of sales 46 280 Inventory 7 620 Rent income 14 840 Trade receivables 13 600 Discount allowed 80 Capital, 1 June 2021 38 000 Additional information as at 31 May 2022: 1 Rent income, $2 400, has been received in advance. 2 Salaries and wages, $5 800, was prepaid.

3 NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC 3 Interest expense of $500 is still owing. 4 A review of trade receivables on 31 May 2022 showed that 5% of the trade receivables were estimated to be uncollectible. 5 Christine found $350 worth of books damaged at the end of the year. 6 Depreciation is to be charged on the office equipment at 20% per annum using the straight- line method. 7 Depreciation is to be charged on the motor vehicle at 15% per annum using the reducing balance method. 8 A deposit of $7 000 into the business bank account by Christine was not recorded yet. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 May 2022. [10] (b) Prepare the statement of financial position as at 31 May 2022. [10] [Total: 20]

4 NORMAL ACADEMIC NORMAL ACADEMIC NORMAL ACADEMIC 2 Alexandria started the business with $10 000 of capital contribution on 1 April 2019.