Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Noor, who traded on her own account, was getting her business’s financial statements ready for the year ending 31 December 2018. The information below is provided.
(a(i))[3]
General expenses total
(a(ii))[1]
Insurance expense
(a(iii))[1]
Rent receivable amount
(a(iv))[3]
Closing inventory figure
(b)[2]
State two accounting concepts that are used when recording a provision for doubtful debts.
(c)[5]
Calculate the rise or fall in the provision for doubtful debts at 31 December 2018.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Opening prepaid amount $480” …