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2021 7087 GCE O Level Paper 2 Specimen Paper Answers

The 7087 GCE O Level Principles of Accounts POA Specimen Paper 2 can be accessed here. 1a) XY Pte Ltd Statement of Financial Performance for the year ended 31 July 2020 $ $ Sales revenue 325,000 Less: Sales returns 2,400 Net sales revenue 322,600 Less: Cost of sales 94300 Gross profit 228,300 Add:Other income Rent…

The 7087 GCE O Level Principles of Accounts POA Specimen Paper 2 can be accessed here.

1a)

XY Pte Ltd
Statement of Financial Performance for the year ended 31 July 2020
$$
Sales revenue325,000
Less: Sales returns2,400
Net sales revenue322,600
Less: Cost of sales94300
Gross profit228,300
Add:Other income
Rent income(1000+500)15001500
Less: Other expenses
Impairment loss on trade receivables200
General expense(39700-350)39350
Depreciation of office equipment
(25% x 193,000)
48250
Depreciation of motor vehicles
(20% x [84,000-30,420])
10752
Equipment repairs(5600+3000)8600
Wages and salaries(78960+560)79520186672
Profit for the year43,128

b)

XY Pte Ltd
Statement of financial position as at 31 July 2020
$$$$
Non-current assetsCostAccumulateddepreciationNet book value
Motor Vehicles840004099243044
Equipment19300014625046750
Total non-current assets89758
Current assets
Inventory41320
Trade receivables20000
Less: Allowance for impairment of trade receivables80019200
Rent receivable500
Prepaid general expenses350
Cash at bank2430085670
Total Assets175,428
Equity & Liabilities
Owner’s equity
Share capital ,100,000 ordinary shares100,000
Retained earnings (18260+43128-12,000)49,424149,388
Current liabilities
Trade payables13480
Wages and salaries payable560
Dividends payable12,00026040
Total equity and liabilities175,428