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

Preparation of financial statements — practice question

The trial balance below was taken from the records of V Limited on 31 December 2023.
(a)[14]

Prepare the statement of profit or loss for the year ended 31 December 2023, using the space provided on page 4 to show your workings.

(b)[2]

On page 5, complete the statement of changes in equity for the year ended 31 December 2023.

(c)[2]

State two factors that directors should consider when declaring a dividend.

(d)[7]

Advise the directors on which option to select. Justify your choice by assessing the impact on both profitability and liquidity.

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