POA question of the a day (29 Jan 2009)
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While revising for his O levels last yr, a student of mine passed me this question from his teacher. He said the teacher claimed nobody from St Gab's passed the paper because of this 32-mark question. Sry I can't seem to format it nicely (can't tab, insert ms doc tables, pdf?).
Incomplete records (analysis) question from 2007 St Gab's Sec Prelim:
Zaphaniah is a sole trader who started his business on 1 January 2003 at a rented premises with an annual rent of $36 000. His business ends its financial year on 31 December annually. Zaphaniah does not keep a proper set of accounts, but has made the following information available for the year ended 31 December 2006
31 Dec 2005 31 Dec 2006
$ $
Stock 3320 5621
Debtors 4290 11540
Creditors 1780 3150
Prepaid advertising expenses 222 300
Accrued motor repairs 111 70
Unused stationery 20 15
Bank Loan 20000 20000
Bank 6500 Cr ?
Motor vehicles 45000 ?
Shop fittings 12000 ?
Provision for depreciation
- Motor vehicles 18000 ?
- Shop fittings 1800 ?
Additional information:
(i) Stock costing $820 had been sent to a customer on a ‘sale or return’ basis on 29 November 2006. These goods were not sold and were returned by the customer on 2 January 2007.
(ii) Summarised Cash Book information in respect of the year’s transactions to 31
December 2006 was as follows
$
Cash takings banked 12 000
Cash payments from takings:
Stationery 90
Carriage on purchases 230
Drawings for personal use 1 560
Motor repairs 2 745
Office expenses 325
Creditors 300
Cheque banked:
Proceeds from personal investment 4 000
Debtors 54 382
Debts previously written off as bad debts 1 210
Cheques Issued:
Purchases 560
Creditors 16 670
Rent 29 000
Insurance 3 500
Household expenses 1 200
Advertising 4 200
Shop fittings 2 600
Wages 7 200
Carriage on sales 1 400
(iii) Total amount of credit note issued and received are $110 and $190 respectively.
(iv) The cash discount columns of the Cash Book show the following totals:
Debit total $ 90
Credit total 200
(v) On 31 December 2006, a contra entry was made to record Ben’s balance of $300 and $20 respectively in Zaphaniah’s Purchases Ledger and Sales Ledger.
(vi) $70 of debt owed by a customer was deemed irrecoverable and was written off during the year.
(vii) Depreciation has to be charged at 20% p.a. on the net book value of motor vehicles and 5% p.a. on the cost of shop fittings.
(viii) ¼ of wages was for packaging of goods resale.
(ix) Insurance was paid for 5 months ended 28 February 2007.
(x) A provision for doubtful debts of 2% has to be created for December 2006.
(xi) Interest on loan is to be charged at 6% p.a.
(xii) Bank statement received on 31 December 2006 revealed the following discrepancies:
$
Unpaid cheques 80
Standing order - electricity 320
Credit transfer – commission received 2 640
REQUIRED
(a) Prepare the Trading and Profit and Loss Account for the year ended 31 December 2006. [22]
(b) Prepare the Balance Sheet as at 31 December 2006. [10]
[Total : 32] -
Atempted the question. I find it quite alright except for the least common (i) and (v).
Other than that, it basically covers lots of chapters from Bank recon to sales/purchases ledgers, and most important balanced day adjustment.
Definitely slight higher standard question for stronger students.
Time-wise, I guess the setter miss out this. Even an experience student like me takes 20min at this Q. *faint*
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Post answer post topic
Me copy paste into examworld
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I just attempted the question and I think your accounts teacher is MAD.
He/she is farking MAD MAD MAD!!!!
Either that or he/she doesn't like any of the students from your school.
Suggest you complain MOE, see if any reasonable accounts teacher (from another school) can do this within the alloted time.
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After finishing this, I only got one thing to say to the teacher from St. Gab.
!@$!@%$@!%*)!!!!!!
This is beyond O level standard lah!!!!
This is the best that I can do, if anybody has better suggestion, let me know.
Blue goes to P&L a/c.
Red goes to B/S.
Green you can ignore because I used it to re-check working. It is the same as figures in black.
***Didn't do adjustment for item v), not sure if there is a need to.
