Cambridge O Level accounting paper 2(structured written paper)

● Answer all questions. ● Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. ● You may use a calculator. ● International accounting terms and formats should be used as appropriate. ● You should show your workings. INFORMATION ● The total mark for this paper is 100. ● The number of marks for each question or part question is shown in brackets [ ]. ● Where you are asked to complete a layout, you may not need all the lines for your answer. This document has 20 pages. Any blank pages are indicated. DC (DE) 320789 © UCLES 2022 [Turn over 1 BC a sole trader prepared the following trial balance from his accounts on 31 August 2022. Dr Cr $ $ Purchases 120 000 Revenue 231 500 Sales returns 3 600 Inventory 1 September 2021 11 100 Capital 111 900 Bank 4 100 Non-current assets at cost Premises 98 000 Machinery 52 000 Provision for depreciation of non-current assets Machinery 28 400 Commission receivable 2 200 Trade receivables 19 200 Trade payables 7 300 Discount allowed 600 Discount received 1 400 Insurance 9 600 Repairs 12 400 Salaries 53 900 Rates 6 000 Carriage inwards 386 800 Additional information 1 The closing inventory at 31 August 2022 was valued at $12 000. 2 Commission received of $800 was owing at 31 August 2022. 3 The balance shown for salaries covers the 11 months to 31 July 2022. Salaries for August 2022 are due and unpaid. There have been no salary increases over the previous 12 months and an equal amount is paid each month. 4 At 31 August 2022 rates were prepaid by $300. 5 The insurance included $700 covering a private insurance premium for BC. 6 The repairs included $4000 that related to a new attachment for machinery. 7 Machinery is to be depreciated at the rate of 20% per annum by the reducing balance method. A full year’s depreciation is charged regardless of the date of any purchases. There were no disposals during the year. Premises are not depreciated. REQUIRED (a) Prepare the income statement of BC for the year ended 31 August 2022 BC Income Statement for the year ended 31 August 2022 ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... ……………………………………………………………........... $ …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... $ …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... …………….... ……………....