2013 POA Suggested Solutions for Paper 2!

Hi there!

For those who have put in your fair share of labor, I hope today’s paper was easy for you. πŸ™‚ This year, we have a lag with sources for Paper 1. We will put up the suggested solutions for P1 ASAP. If you are looking for it, head straight below, read the FAQ section and download your answers for review.

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To my 2013 students, I just want to say thanks for making this year one of the most enjoyable and memorable moments in my teaching career.

You’ve been such a delightful and fun cohort to teach. What a privilege it is to share moments with you in the classrooms and outside of them.

They are memories I’ll have with me for a long time. I’m grateful for the sense of joy and anticipation every time I am in the class and I’m so happy to see so many survive my very bad jokes.

Look forward to see you make good of the learning experience we had together (POA or not) and may you excel tremendously in whichever industry you set your eyes on.

I’ll miss you sorely. πŸ™‚

Your partner in crime,

Caleb

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Frequently Asked Questions

Q: Can you upload the question paper for Paper 1?

A: No, unfortunately. Question papers cannot be uploaded due to copyright reasons. Authorized publishers will make these available at all major bookstores from Feb 2014 onwards.

Q: My presentation is this like my school teacher says, it differs from your answers – will I be marked wrong by Cambridge?

A: I’m not the examiner/guru/genie. This remains as suggested solutions and serves as a point of reference.They are not absolute answers. We can discuss who’s right and wrong till the cows come home but it’s decided by the all-power examiner. πŸ™‚

Q: I noticed something is wrong with your answer. Did you make a mistake?

A: Well, the mistake could be mine. In fact, assume it’s mine. πŸ™‚

That’s why I put it up here for discussion. Help better it that all of us can benefit. Tell us your thoughts in the comments section below. I’ll update and upload the new version(s) if there is a need. πŸ™‚

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When you are ready, right click and choose β€œSave As” to download:

7092/02 GCE O’ Level Principles of Accounts 2013 Paper 2 Suggested Solutions

Again, we will upload the answers for Paper 1 as soon as we can. πŸ™‚

Update 1:

8 Nov, 9:48a.m -Solution update:

Adrian Chiam pointed out that insurance expenses was for 15 months. (Thanks)

22 Nov, 5:42p.m

Solutions revised! Credit goes to:

Joshua Ng, Jun Hong, poastudent, Tim, Qq, Green, Chloe and the community on PrinciplesofAccounts.com.sg!

Comments are closed at this time. Check back soon!

  • Poa.student

    The prepayment for insurance covers 3 months but the total period is 15 months πŸ™‚ thank you for the amswers though πŸ™‚

  • Joshua Ng

    1.For Question 2b) , 3 – Is it possible to put Office Equipment Repairs?
    2. I thought it is Purchase of fixed assets on credit ? If is not on credit it will go to cash book

  • poa.student

    May I also ask, will we be penalized for writing down the closing for General journal and if it is fine if we wrote “computers” instead of “office.equipment”? Thank you πŸ™‚

  • calebho

    It should be ok. Just my opinion though. I believe 2 examiners mark your paper. ‘Computer’ should through fine.

  • calebho

    So long as what you are saying is the prepaid insurance is 240, we are agreeing with each other. πŸ™‚

  • Saleha Noor

    hello there,
    i’ve doubts on your COE Question, part 1.
    since i overstated my bank by $27, should’int i credit bank instead?

  • poa.student

    I posted prior to mr ho updating answers haha. Alright, thank you! πŸ™‚

  • Guyang

    Hey just a query. For qn4c) Can I say the balance shows the total opening balances of all individual creditors account placed in the Purchases ledger at that day.

  • lucy

    hello, may i know why for 2b(1), you credited kim and debited debtor?

  • sharon

    For 2b)-3 can it be Office Equipment Repairs or Office Repairs?

  • Student.

    Question 5a, shouldn’t the method for depreciation be reducing balance method instead of straight line method? Since office equipment is an asset that provides more benefits when its new. Just enquiring πŸ™‚

  • KunYou

    Hi,Just to check for the provision for depreciation account,in the event if add disposal and the amount is correct,Then will there be marks given?

  • Ho

    Hi Caleb! May I ask if I have included the 8/6% loan interest as CL, how much marks will I obtain? And if I did pro-rata for the depn qn, how will I fare? Completely 0 marks for both calculations? thanks in advance!

  • Chloe

    Why we dont need to record the interest on loan for qn 3?

  • Anonymus

    For 4a, they are asking for source document but not book of prime entry i believe.

  • Anonymus

    It is neither an asset nor a liability. Its an expense.

  • Green

    Source of information refers to the journals where you can find your balances for your plc,it is not source documents

  • Green

    Not false but unfortunately they are asking you for the method used by the question itself so the answer can only be the straight line method.

  • Green

    Sorry but if I calculated interest on loan wrongly and did not adjust in additional info no. 3 how much marks will I lose?( P.S I’m referring to qn1 of paper 2 and still managed to balance like others)

  • Joshua Ng

    Some people say that it is Accrued Interest On Loan which makes it a liability but it is not as the QNS only indicates that there is a loan , assumption should not be made that the owner has not paid

  • Chloe

    But we also cannot assume that the owner has already paid.

  • Qq

    Hi, for the provision for depreciation for motor vehicles a/c, since the amount is already given, can the working for the first bal b/d(may 1 2011) be (1800+1620)? And for the disposal part(the grey part), if i wrote it, would i be penalised and get marks deducted? Thank you!

  • calebho

    Hi Green, the balance sheet will still balance because it’s an error of omission. πŸ™‚ I think it’s 1 mark or 1.5 max. 2 is too harsh.

  • calebho

    Nothing was said. Shouldn’t assume adjustment needed. My 2 cents. πŸ™‚

  • calebho

    If I got you correctly, you mean that you included $4878 into the accounting year 1 May 11 to 30 Apr 12?
    If that’s the case, it means you didn’t understand the accounting period that the question is testing. It’s a conceptual error. I wouldn’t award marks. It’s fairly tricky unless one is sharp with the dates.

  • calebho

    great thought there, Green. πŸ™‚

  • calebho

    It’s a phrasing issue – clearly correct identification. Don’t see why you’d be penalized.

  • chloe

    Okay. If we included it, will there be any working marks given? Or totally 0 marks?

  • calebho

    yes. it’s a very sound answer. πŸ™‚

  • calebho

    Hi Qq, sure. It clearly shows your understanding of NBV. For your next question, I’d say that marks will be deducted. It appears to me that this is the tricky part of the whole question, if not the paper.

  • calebho

    chloe, thanks for your comment. you know what. let me have a re-look at the question and get back to you.

  • Qq

    Damn… but thank you so much for replying!

  • Green

    Ok noted,didn’t adjust due to me being paranoid,thought qn wanna trick me since it didn’t say not recorded in the books

  • Hello

    Depends on the marking scheme and how well we did.
    If we did too badly on average, they will mark leniently and accept computers.
    If many candidates put as office equipment, it will be marked wrong.
    -sorry if im too straight, no offences-

  • Hello

    Thanks for the answers. (:
    Hopefully you’ll work out Paper 1 answers anytime soon (:

  • Joshua

    But anyway lets give the benefit of doubt that the adjustment is needed ( which i think is not possible ) , the accruals should be more than $2720 as the interest for the bank loan is already more than that.

  • Joshua Ng

    Office Equipment is the official right answer , Computer is the one that is debatable

  • Tim

    Hi Caleb. May i ask for the disposal account. Shouldn’t be the disposing date be 2013 April 30 instead of 2013 June 30 for the Loss on disposal?

  • Hello

    By right, in the real world, there’s is no such accounts called computers.
    Its also the same concept as there’s no such account called vans (which it should be motor vehicles).
    By left, true, its debatable since now all the accounts name all anyhow name one, depending on how the company likes to name them.

  • KunYou

    Ok,I understand,But just curious if there are missing or wrong dates,Will The markers minus marks?

  • calebho

    U r welcome. πŸ™‚
    May take a while with Paper 1. Still waiting for source.

  • calebho

    Hi Tim, you are right. Updated with your input. Much thanks!

  • calebho

    Hi Ho! I’m not too clear with what you are asking for the first part of your question. Do you mean the figures to put in P/L and B/S in Q1 or separately for Q3?

    For Depreciation- unfortunately, you cannot pro-rate. The question was very clear on the first line that a full year’s depreciation is charged in the year of purchase but none in the year of sale. Depending on the way you present your workings, there could be some marks. But likely 0.

  • calebho

    Very likely. Dates and details are very important in POA. Accounting period concept. Need to account accurately. πŸ™‚

  • calebho

    re-uped solutions with your input. thanks!

  • calebho

    revised solutions with your input. thanks!

  • calebho

    better that this comment is coming from the student than from me. πŸ™‚

  • calebho

    There is a gap between academics and real life. Haha. There are standardized chart of accounts with fixed wordings in computerised systems – even that, most of them can be customised to fit the business’ needs.

  • Weilun

    For qn 2c, can i say that the general journal is used to record other transactions that does not appear in other journals?

  • poastudent

    Hello, Mr Ho. For Q2b-1, why is it debit kim and credit debtor? Wouldn’t that offset each other? I was under the impression that we debit kim and.credit bank. Please.enlighten.me, thank you πŸ™‚