Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Warren operates as a sole trader. Trading began on 1 February 2016. For the year ended 31 January 2017, he did not maintain detailed accounting records, although he has supplied the information below. Warren uses a 50% mark-up on cost.
(a)[6]
Prepare the trading section in the income statement for the year ended 31 January 2017.
(b)[4]
Explain two advantages of keeping control accounts.
(c)[5]
Explain the effect these transactions would have on the financial statements for the year ended 31 January 2017.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme.