nn MINISTRY OF EDUCATION, SINGAPORE In collaboration with UNIVERSITY OF CAMBRIDGE LOCAL EXAMINATIONS SYNDICATE, ‘General Certteateof Education Advanced Level Highor2 PRINCIPLES OF ACCOUNTING 9755/01 Papert ctobernoverber 2012 2 hours 30 minutes gem Atel Maes: Mont acon pep shox) 33S EAD THESE msTAUCTIONS FRST ite your Crt curb, nox number ar ame ena the wore you ha Wire hn ark au or tise pen on ath ses of the pape. = ‘You may use sf ponte any rough working, Do nol use staples, paper ips, highighlers gue or correction fi, ‘rower all questions, ‘Allcabulatens must be shown agacentto the ans. ‘Yeu may use cleat. ‘tthe end of th examination taste all you work securely together. ‘Toe number of marks is gen In rack | athe ana ofeach question or pat question, ‘This document consists of 9 pied pages and 3 bink papes oe Cie etc times vaavasary caiman euciea swore cine ony wena (en over 42 SECTION A Answor al questons. 41 ecounts are prepared using numberof accounting conventions, including the ftowing 1 prudence: 2 consistency: 3 accruals. EQUI Briefly explain the terms and give an example of each in relation to the preparation of final ‘accountalstatements. (Total: 9) 2 Mr Wei does not koep double enty accounting cords in reapect of his business, He hae asked you to calculate whether or not he has made a profit or loss forthe last year by providing you with the folowing informaton At30.hine 2012 At30 June 2011 8 8 Freehold property 0000 ‘30000 Motor vetices 15000 19000 ‘Stock (ventory) 4300 5100, Debtors (rade receivables) 7600 3900 CCrecitors (rede payables) 8000 5500 Bank balance 1200 ‘300 Mr Wel advises you that curing the year he took drawings of $12000 from the business. The freehold propery was revaluod during the year REQUIRED Prepare a calculation showing how much proft or loss Mr Wel has made for the year ended 30 dune 2012, (rote: 9}3. MeWong, a retailer, suspects that some of his takings have been stolen. He provides you wit the folowing information in respect of his sales aed purchases for the lat month; 8 Net cash purchases forthe month at cost 22000 Takings banked 92300 ‘Drawings paid rom takings betore banking 14000 ‘Wages pald trom takings bofore banking +3000 Mr Wong eams a uniform 20% margin on all his sales. During the month his inventory (stock) increased by $2000. REQUIRED (@) Calculate the amount of cash stolen during the month 5 (©) State two ways he could improve the security of his cash takings. @ Trotat: 71 4 Jotns accounting year ends on $0 une 2012, Hs book:keeper has prepared a drat trading and profit and oss account (income statament) This showed a net profit of $20000, John has reviewed the value of his stock (rwentory) and foun the folowing errors: 11 The opening stock (inventory) at 1 July 2011 had bean overvalued ty $4000, 2 100 items of product A at 30 June 2012 had boon included at their cost price of $30 ‘each. The goods were sighly damaged and could only be sold fr $25 each 320 tems of product 8 had been Incuded at thelr cost pice of $40 each. These were ‘also damaged and required further work, costing $2 per tem fo bring them to a saleable ceoaiton. When this had been done the itome could then be sold for $20 each. REQUIRED (@) State the basis on which imzentory stock) should be valued for inclusion in the income ‘Statement (raging and profit and loss account) a] 1B) Calculate the corect net profit gue alter taking hems 1-3 abou into account. 4 (Total: 6) ovciesanccae resonneie Tum over‘8 The balance sheet (statement of nancial position) of Sam's acing Company (PTE) at 21 March 2011 is sot out below: ‘Saris Trading Company (PTE) Balance Sheet (Statoment of Ftancial Poston) ‘31 March 2017 $000 $000 $000 Cost Depa NBV heed Ascot (non-currant) ‘Land and buildings Plant and machinery 4s isa Bilao 2B 7” ‘Current apsots ‘Stock (inventory) Debtors (rade recoivabes) 1 Bank (cash and cash equivalents) Current Habits ‘Grecitos (rade payables) ® 6 Long-term lilies (non-curent) ‘ean ‘eB Equty ‘Ordinary shares Retained earnings laws° “The company accountant has propared the folowing satemento cash flows (cash tow statement) for the year ended 81 March 2012: { ‘Sam’ Trading Company (PTE) Cash Flow Statement (Statement of Cash Flows) For Year Ended 31 March 2012 000 $000 ‘cash generated from operations Profi rom operations ei ‘Depreciation for he year on plant and machinery 8 ‘Change in crettors(vade payables) 8 (Change in debtors (rade receivables) 2 | ‘Grange instock (inventory) a ‘Dwvidends pala 2 Intorost pad a | 5 Invecting activin Purchase of new machinery @) Sale of old machinery 2 0 Financing actives ‘Repayment ofan ® Net decrease in Bank (cash and cash equivalents) a ‘Bank atthe begining ofthe year (cash nd cash equivalents) a ‘Bank atthe end ofthe year (cash and cash equivalents) G ‘Addtonal information 1 The machinery was sold on 1 Apri 2011. Itoriginally cost $4000, There was no proft or loss on disposal 2 During the yoar the lane and buildings had been revalued at $7000. REQUIRED () Prepare the balance shoe statement of nancial positon) for Sam's Tracing Company (PTE) ‘at St March 2012, 6) (©) State two advantages of preparing a cash flow statement (statement of cash flows). [4] (Tota: 20)