2021 POA N Level Answer 7086

2021 N Level POA Answers 7086

Paper 1 :

ai) Integrity. Being straightforward and honest in all professional and business relationships

aii) Objectivity. Not letting bias, conflict of interest or undue influence of others to override professional judgment

(b) To serve as an objective and verifiable evidence of a business transaction.

(c) 

Source documentType of transaction
(i)ReceiptCash purchase or cash sale
(ii)Debit noteCorrect an undercharge of a credit sale or purchase
(iii)InvoiceCredit purchase or credit sale
(iv)Credit NoteReturn of credit sale or credit purchase
(v)Payment VoucherRecord of payments 

(d) 

Income Summary.

(e) 

•  safeguard assets of the business

•  ensure business transactions are recorded objectively and on a timely basis

•  ensure that the business complies with laws and regulation

a)

Trade payable : Ting

DateParticularsDr ($)-Cr ($)+Balance
2021
Jun 1 Balance b/d 4820 Cr
2Inventory (purchases) 2160
6Inventory (returns) 180 
30Cash at bank30003800 Cr
Jul 1 Bal b/d 3800 Cr


b)

Trade discount is given by the seller to the buyer of goods to encourage bulk purchase.

ci)
Dr Trade payable 

Cr Discount Received

(ii)

Dr Discount allowed Cr Trade receivable

a)

Method of depreciationWorkingsDepreciation expense for the year ended
31 August 202031 August 2021
Straight-lineUseful life 5 yearsScrap value $2500($40000-$2500)/5
= $7500
$7,500$7,500
Reducing-balanceof 20% per annumYr 1: $40,000×20%=$8000

Yr 2:
($40,000-$8000)x20% = $6400
$8,000$6,400

b) Reducing balance method


c) 

Jerome

Extract of Statement of Financial Position as at 31 August 2021

 CostAccumulated DepreciationNet Book Value
Non-current Assets$$$
Motor vehicles 40,00014,40025,600

a)

Only trading businessBoth trading business and service business
Calculates cost of sales
Calculates profit for the year
May have other income
Always holds inventory

b) 

 General Journal  
2021 Dr ($)Cr ($)
 Cash at bank20000 
 Capital 20000
 Office equipment500 
 Capital 500
 Drawings20 
 Inventory 20

Paper 2 :

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