2020 N Level POA Answers Paper 2
Adele
Statement of financial performance for the year ended 30 July 2021
| $ | $ | |
| Sales revenue | 191,520 | |
| Less: sales returns | 8,720 | |
| Net sales revenue | 182,800 | |
| Less : cost of sales | 120,240 | |
| Gross profit | 62,560 | |
| Add : other income | ||
| Commission income | 7,810 | |
| Less : expenses | ||
| General expense | 9,575 | |
| Rent and rates (10600-560) | 10,040 | |
| Wages and salaries (2,470 + 420 ) | 25,180 | |
| Motor vehicle expense | 7,335 | |
| Impairment loss on trade receivables | 300 | |
| Depreciation on motor vehicle [(19,000 – 650)x 20 %] | 2,500 | |
| Depreciation on fixtures and fittings (10%x 6,300) | 630 | 55,580 |
| Profit for the year |
Adele
Statement of financial performance for the year ended 30 July 2021
| Assets | $ | $ | $ |
| Non-current asset | cost | Acc. dep. | N.B.V |
| Motor vehicle | 19,000 | 9,000 | 10,000 |
| Fixtures and fittings | 6,300 | 2,830 | 3,470 |
| 13,470 | |||
| Current assets | |||
| Prepaid rent expense | 560 | ||
| Cash in hand | 120 | ||
| Trade receivables | 24,685 | ||
| Less: allowance for impairment on TR | (300) | ||
| Net trade receivables | 24,385 | ||
| Total current assets | 25,065 | ||
| Total assets | 38,535 | ||
| Equity and liabilities | |||
| Owner’s equity | |||
| Beginning balance | 36,930 | ||
| Add: profit for the year | 14,790 | ||
| Less : drawings | (21,600) | ||
| Total equity | 30,120 | ||
| Current liabilities | |||
| Trade payable | 18,120 | ||
| Accrued wages expense | 420 | ||
| Short term borrowing | 900 | ||
| Total current liabilities | 19,440 | ||
| 49,560 | |||
| Total equity and liabilities |
(a)
| transaction | Debit | Credit |
| 1 | Cash at bank | Bank loan |
| 2 | Inventory | Trade payable – Rashid |
| 3 | Insurance | Cash at bank |
| 4 | Stationary | Cash in hand |
(b) The cash book is where all collections and payments of monies are first recorded. It records the cash
discount given to credit customers and cash discount obtained from credit suppliers.
(c)
| Debit ($) | Credit ($) | |
| Trade receivables – Hanna | 45 | |
| Cash at bank | 45 |
(a)
A source document captures information about a business transaction. The document provides proof
that the transactions have occurred. As all the important information is captured in the source
documents, it ensures that the transactions will be accurately recorded later.
(bi) Credit note
(bii) Bank statement
(ci) General Journal
(cii) Credit note
(3d) Sales journal
(3ei) To encourage prompt payment
(eii) $4,600 * 3% = $138
(eiii) Discount allowed
(eiv) Debit balance
(3f) Going concern concept
(a)
Shing
Trade payable control account
| Date | Particulars | Dr | Cr | Bal |
| 2019 | $ | $ | $ | |
| Jun 1 | Balance b/d | 25,320 Cr | ||
| 2020 | ||||
| May 31 | Cash at bank | 32,860 | ||
| Inventory | 42,750 | |||
| Trade receivables control | 490 | |||
| Inventory (purchase returns ) | 6,870 | 27,850 Cr | ||
| Jun 1 | Balance b/d | 27,850 Cr |
(b)
Shing
Trade receivables – Zhu account
| Date | Particulars | Dr | Cr | Bal |
| 2020 | $ | $ | $ | |
| May 1 | Balance b/d | 4,600 Dr | ||
| May 8 | Sales revenue | 1,890 | ||
| May 15 | Sales returns | 300 | ||
| May 31 | Cash at bank | 619 | 5,571 Dr | |
| Jun 1 | Balance b/d | 5,571 Dr |
(c) prudence concept
(a)
Nasim
Fixtures and fittings account
| Date | Particulars | Dr | Cr | Bal |
| 2019 | $ | $ | $ | |
| Sept 1 | Balance b/d | 3,460 Dr | ||
| 2020 | ||||
| Jan 11 | Cash in hand | 30 | ||
| Apr 9 | Other payable – Lee suppliers | 350 | ||
| Jul 5 | Capital | 75 | ||
| Sept 1 | Balance b/d | 3,915 Dr |
(b)
Nasim
Capital account
| Date | Particulars | Dr | Cr | Bal |
| 2019 | $ | $ | $ | |
| Sept 1 | Balance b/d | 45,200 Cr | ||
| 2020 | ||||
| Jul 5 | Fixtures and fitting | 75 | ||
| Aug 31 | Drawings ($200 + $10,580) | 10,780 | 34,495 Cr | |
| Profit and loss (loss) | 2,425 | 32,070 Cr | ||
| Sept 1 | Balance b/d | 32,070 Cr |
(c) Accounting entity theory
