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

Preparation of financial statements — practice question

At 31 December 2017, the trial balance for N plc was as follows.
(a)[15]

Prepare the income statement for the year ended 31 December 2017.

(b)[5]

Calculate the balance on the revaluation reserve account at 1 January 2017 after the revaluation.

(c)[3]

State how the destruction of the new photocopier in January 2018 should be dealt with in the 2017 financial statements and in the 2018 financial statements.

(d)[2]

State the meaning of impairment loss for non-current assets.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Revenue came to $2 348 000

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