chij tpy 2023 4E/5N prelims

CONVENT OF THE HOLY INFANT JESUS SECONDARY Preliminary Examination in preparation for the General Certificate of Education Ordinary Level 2023 CANDIDATE NAME CLASS REGISTER NUMBER PRINCIPLES OF ACCOUNTS Paper 2 Additional Materials: 12-page Answer Booklet 7087/02 12 September 2023 2 hours READ THESE INSTRUCTIONS FIRST An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper, ask the invigilator for a continuation booklet. Answer all questions. The use of an approved calculator is allowed. The businesses described in this question paper are entirely fictitious. The number of marks is given in brackets [ ] at the end of each question or part question. For Examiner’s Use 1 2 3 4 Total O

2 CHIJSEC/2023/PRELIM/4E5N/POA/7087/P 2 [Turn over Answer all questions. 1 Jacob runs a hardware store. The following balances were extracted from the books of his business on 31 December 2022. $ Office equipment at cost 53 000 Motor vehicles at cost 80 000 Accumulated depreciation: Office equipment 10 600 Motor vehicles 24 000 Sales revenue 195 430 Sales returns 4 150 Cost of sales 70 200 Inventory 30 500 Commission income 12 300 Rent expense 18 600 Wages and salaries 22 450 Utilities expense 9 800 Trade receivables 23 250 Trade payables 35 180 Cash at bank (credit balance) 7 100 5% bank loan 25 000 Capital 7 240 Drawings 4 900 Additional information 1 Office equipment is to be depreciated at 10% per annum using the straight-line method. 2 Motor vehicles are to be depreciated at 30% per annum using the reducing-balance method. 3 At 31 December 2022: i commission income, $1 500, was receivable ii rent expense, $600, was prepaid iii wages and salaries, $950, were owing. 4 Utilities expense included $300 which were Jacob’s personal utilities bill. 5 Interest on the bank loan for the year to 31 December 2022 had not yet been paid. 6 One-fifth of the bank loan will be repaid on 30 June 2023. REQUIRED (a) Prepare the statement of financial performance for the year ended 31 December 2022. [10] (b) Prepare the statement of financial position as at 31 December 2022. [10]

3 CHIJSEC/2023/PRELIM/4E5N/POA/7087/P 2 [Turn over [Total: 20] 2 On 1 July 2020, Yasmine Trading bought a motor vehicle costing $90 000 and paid by cheque. On 30 June 2022, the business sold the motor vehicle on credit for $60 000 to Mr Ong. The business depreciates its motor vehicles at a rate of 20% per annum using the reducing-balance method. A full year of depreciation is charged in the year of purchase, and no depreciation is charged in the year of sale. Yasmine Trading’s financial year ends on 31 December. REQUIRED (a) Prepare the journal entries to record the sa