Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

Refer to Source A1 in the Insert.
(a)[12]

Prepare the manufacturing account for Marco for the year ended 31 January 2018.

(b)[3]

Prepare an extract from the statement of financial position at 31 January 2018 showing how inventories are presented.

(c)[2]

State two accounting concepts associated with the provision for unrealised profit.

(d(i))[4]

Explain why Marco should set up a provision for unrealised profit.

(d(ii))[4]

Analyse the effect on profit if Marco fails to make a provision for unrealised profit.

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