2019 N Level POA Answers
Paper 1 :
a)
Journal
| Dr ($) | Cr ($) | |
| Petty cash fund | 90 | |
| Cash at bank | 90 |
b) The amount in the petty cash fund can be easily adjusted to suit different circumstances.
c) Reimbursement required = (22 + 15 + 18 + 12) = $67
d)
Journal
| Date | Particulars | Dr ($) | Cr ($) |
| 2019 | |||
| Feb 1 | Drawings (5 + 6) | 11 | |
| Petty cash fund | 11 | ||
| Cash at bank | 11 | ||
| Petty cash fund | 11 |
e) This concept states that only transactions which can be measured in money terms are recorded.
ai) Supplier, Customer
ii) Supplier, Customer
b)
Allowance for impairment of trade receivables
| Date | Particulars | Dr ($) | Cr ($) | Balance |
| 2018 | ||||
| Jun 30 | Impairment loss on trade receivables (1 549 + 874 + 267) | 2, 690 | 2 690 Cr | |
| Jul 1 | Balance b/d | 2 690 Cr | ||
| 2019 | ||||
| Jun 30 | Impairment loss on trade receivables (2 690 – (481 + 594)) | 1 615 | 1 075 Cr | |
| Jul 1 | Balance b/d | 1 075 Cr |
c)
Impairment loss on trade receivables
| Date | Particulars | Dr ($) | Cr ($) | Balance |
| 2018 | ||||
| Jun 30 | Allowance for impairment of trade receivables (1 549 + 874 + 267) | 2, 690 | 2 690 Dr | |
| 30 | Income summary | 2, 690 | – | |
| 2019 | ||||
| Jun 30 | Allowance for impairment of trade receivables (2 690 – (481 + 594)) | 1 615 | 1 615 Cr | |
| 30 | Income summary | 1 615 | – |
d) Prudence concept.
e) Accounting period concept
a)
| Debit | Credit | |
| Sales returns | ✔ | |
| Bank overdraft | ✔ | |
| Cost of sales | ✔ | |
| Prepaid expenses | ✔ | |
| Income received in advance | ✔ | |
| Drawings | ✔ | |
| Accumulated depreciation of motor vehicles | ✔ |
b)
| Increase in profit | Decrease in profit | No effect | |
| $ | $ | ||
| Error 1 | 150 | ||
| Error 2 | 90 | ||
| Error 3 | ✔ | ||
| Error 4 | 1 080 |
c) Accounting entries recorded in the wrong account that is of a different class as the correct account.
d) Accounting entries recorded in the wrong account that is of the same class as the correct account.
Paper 2 :
Afiq’s business
Statement of financial performance for the year ended 30 April 2019
| $ | $ | |
| Advertising fee income (98850 – 15800) | 83050 | |
| Add: Other Income | ||
| Rental income | 3400 | |
| Less: Expenses | ||
| Printing and stationary | 8520 | |
| Insurance (3800 – 180) | 5420 | |
| General expenses | 3440 | |
| Wages and salaries (52115 – 21815) | 30300 | |
| Motor vehicles expenses (2100 + 470) | 2570 | |
| Depreciation on motor vehicles (20% x (18800-4400)) | 2880 | |
| Depreciation on fixtures and fittings (10% x 5900) | 590 | |
| 53700 | ||
| Profit for the year | 32730 |
Afiq’s business
Statement of financial position as at 31 March 2019
| Assets | $ | $ | $ |
| Non-current asset | cost | Acc. dep. | N.B.V |
| Motor vehicles | 18800 | 7280 | 11520 |
| Fixtures and fittings | 5900 | 2890 | 3010 |
| Total non-current assets | 14350 | ||
| Current assets | |||
| Prepaid insurance expense | 180 | ||
| Cash at bank | 10800 | ||
| Cash in hand | 175 | ||
| Trade receivables | 28200 | ||
| Total current assets | 39355 | ||
| Total assets | 53885 | ||
| Equity and liabilities | |||
| Owner’s equity | |||
| Capital (28050 + 32710 – 21815) | 38965 | ||
| Current liabilities | |||
| Trade payables | 14400 | ||
| Motor vehicles repairs payable | 470 | ||
| Total current liabilities | 14920 | ||
| Total equity and liabilities | 53885 |
(a) The purpose of a purchases journal is to record the purchase of goods/inventory for resale on credit.
(b) Invoice
(c) Trade discount are provided by suppliers to:
encourage bulk purchase
reward customers for loyalty
(d) 2019 July 5: Sales journal
2019 July 29: Sales returns journal
(e) 2019 July 5: 85% x $1200 = $1020
2019 July 29: 85% x $400 = $340
(f) External Stakeholders (any from:)
– Government
– Suppliers
– Customers
– Bank
a)
Yvonne
Updated cash at bank account
| Date | Particulars | Dr ($) | Cr ($) | Balance |
| 2019 | ||||
| Aug 31 | Balance b/d | 2217 Dr | ||
| Bao (dishonoured cheque) | 236 | 1981 Dr | ||
| Electricity expense | 74 | 1906 Dr | ||
| Bank charges | 81 | 1825 Dr | ||
| Sep 1 | Balance b/d | 1825 Dr |
b)
Yvonne
Bank reconciliation statement as at 31 August 2019
| $ | $ | |
| Credit balance as per bank statement | 1440 | |
| Add : Cheques not yet credited | ||
| Ira | 734 | 2134 |
| Less : Cheques not yet presented | ||
| Lok | 349 | 1825 |
| Debit balance as per adjusted cash at bank account | 1825 |
(c) $1,825
(d) Cheques may be dishonoured due to (any two):
– Post dated cheque
– Signature differs from bank records
– Missing details (date, signature)
– Amounts in words does not tally with amount in figures
– Insufficient funds in payee’s bank account
– Expired cheque
(a)
Ming
Inventory account
| Date | Particulars | Dr | Cr | Bal |
| 2019 | $ | $ | $ | |
| May 1 | Balance b/d | 1,125 Dr | ||
| May 5 | Trade payable | 550 | 1,675 Dr | |
| May 15 | Cost of sales | 500 | 1,175 Dr | |
| May 18 | Trade payable , Xin | 250 | 1,425 Dr | |
| May 25 | Cost of sales (returns ) | 125 | 1,550 Dr | |
| May 29 | Cost of sales | 375 | 1,175 Dr | |
| Jun 1 | Balance b/d | 1,175 Dr |
b) Net sales revenue = 840 – 210 + 630 = $1260
(Show workings)
c) Cost of sales = 500 + 375 – 125 = $750
(Show workings)
d) Gross Profit = $1260 – $750 = $510
(Show workings)
*[Removed from Syllabus]*
(a)
Journal
| Date | Particulars | Dr | Cr |
| 2017 | $ | $ | |
| Oct 1 | Machinery | 5,200 | |
| Cash at bank | 5,200 | ||
| 2018 | |||
| Dec 1 | Machinery | 8,600 | |
| Trade payable – Tuyam | 8,600 |
b) Depreciation of machinery
| Date | Particulars | Dr | Cr | Bal |
| 2018 | $ | $ | $ | |
| Sept 30 | Accumulated depreciation of machinery | 1,040 | 1,040 Dr | |
| Profit and loss | 1040 | 0 | ||
| 2019 | ||||
| Sept 30 | Accumulated depreciation of machinery | 2760 | 2760 Dr | |
| Profit and loss | 2760 | 0 | ||
| (1,040+1,720) |
c) Accumulated depreciation of machinery
| Date | Particulars | Dr | Cr | Bal |
| 2018 | ||||
| Sept 30 | Depreciation of machinery | 1040 | 1040 Cr | |
| Oct 1 | Balance b/d | 1040 Cr | ||
| 2019 | ||||
| Sept 30 | Depreciation of machinery | 2760 | 3800 Cr | |
| Oct 1 | Balance b/d | 3800 Cr |
