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

Preparation of financial statements — practice question

Jing operates as a sole trader. He does not keep complete accounting records. Every sale and purchase is made on credit. He supplied the information below for the year ended 30 April 2015.
(a(i))[2]

Calculate the sales figure for the year ended 30 April 2015.

(a(ii))[2]

Calculate the purchases total for the year ended 30 April 2015.

(a(iii))[11]

Prepare Jing’s income statement for the year ended 30 April 2015 in a conventional layout.

(b)[2]

Prepare the journal entry for this transaction. No narrative is needed.

(c)[2]

State two kinds of entries, apart from the correction of errors, that would normally be recorded in the general journal.

(d)[8]

Assess the business performance for the year ended 30 April 2015. Suggest likely reasons for the changes.

(e)[3]

State three advantages to a business of using ratios.

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