2019 POA N Level Answer 7088

2019 N Level POA Answers

Paper 1 :

a) 

Journal

Dr ($)Cr ($)
Petty cash fund90
    Cash at bank90

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

DateParticularsDr ($)Cr ($)
2019
Feb 1Drawings (5 + 6)11
    Petty cash fund11
Cash at bank11
    Petty cash fund11

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

DateParticularsDr ($)Cr ($)Balance
2018
Jun 30Impairment loss on trade receivables (1 549 + 874 + 267)2, 6902 690 Cr
Jul 1Balance b/d2 690 Cr
2019
Jun 30Impairment loss on trade receivables (2 690 – (481 + 594))1 6151 075 Cr
Jul 1Balance b/d1 075 Cr

c) 

Impairment loss on trade receivables

DateParticularsDr ($)Cr ($)Balance
2018
Jun 30Allowance for impairment of trade receivables (1 549 + 874 + 267)2, 6902 690 Dr
30Income summary2, 690
2019
Jun 30Allowance for impairment of trade receivables (2 690 – (481 + 594))1 6151 615 Cr
30Income summary1 615

d) Prudence concept.

e) Accounting period concept

a)

DebitCredit
Sales returns
Bank overdraft
Cost of sales
Prepaid expenses
Income received in advance
Drawings
Accumulated depreciation of motor vehicles

b) 

Increase in profitDecrease in profitNo effect
$$
Error 1150
Error 290
Error 3
Error 41 080

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 stationary8520
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 year32730

Afiq’s business

Statement of financial position as at 31 March 2019

Assets$$$
Non-current asset costAcc. dep.    N.B.V
Motor vehicles18800728011520
Fixtures and fittings590028903010
Total non-current assets14350
Current assets
Prepaid insurance expense180
Cash at bank 10800
Cash in hand175
Trade receivables28200
Total current assets39355
Total assets53885
Equity and liabilities
Owner’s equity
Capital (28050 + 32710 – 21815) 38965
Current liabilities
Trade payables14400
Motor vehicles repairs payable470
Total current liabilities14920
Total equity and liabilities53885

(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

DateParticularsDr ($)Cr ($)Balance
2019
Aug 31Balance b/d2217 Dr
Bao (dishonoured cheque)2361981 Dr
Electricity expense741906 Dr
Bank charges811825 Dr
Sep 1Balance b/d 1825 Dr

b) 

Yvonne 

Bank reconciliation statement as at 31 August 2019 

$$
Credit balance as per bank statement1440
Add : Cheques not yet credited 
Ira 7342134
Less : Cheques not yet presented
Lok3491825
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 5501,675 Dr
May 15 Cost of sales 5001,175 Dr
May 18Trade payable , Xin2501,425 Dr
May 25Cost of sales (returns )1251,550 Dr
May 29Cost of sales 3751,175 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

DateParticularsDr Cr 
2017$$
Oct 1Machinery 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 30Accumulated depreciation of machinery1,0401,040 Dr
Profit and loss10400
2019 
Sept 30Accumulated depreciation of machinery 27602760 Dr
Profit and loss27600
(1,040+1,720)

c)                                                        Accumulated depreciation of machinery 

Date Particulars Dr Cr Bal 
2018 
Sept 30Depreciation of machinery 10401040 Cr 
Oct 1Balance b/d1040 Cr
2019
Sept 30Depreciation of machinery 27603800 Cr
Oct 1Balance b/d 3800 Cr

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