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

Preparation of financial statements — practice question

Read Source A3 in the insert provided.
(a)[7]

Prepare the statement of changes in equity for the year ended 31 December 2020, showing the profit for the year as the balancing figure. A total column is needed.

(b)[13]

Prepare a statement of cash flows for the year ended 31 December 2020 in line with IAS 7. Use the space on the next page for your workings.

(c)[5]

Assess the effect of the payment of the dividend and the partial repayment of the debenture on the cash and cash equivalents at 31 December 2020 of T Limited.

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