(a)[2]
Calculate the profit made for the year ended 30 September 2018.
(b)[11]
Prepare a statement of changes in equity for the year ended 30 September 2018.
(c)[2]
State one distinction between a capital reserve and a revenue reserve.
Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
K Limited finalises annual accounts to 30 September. For the year ended 30 September 2018, the directors worked out profit from operations of $44\,500. On 31 January 2018, they redeemed a 6\% debenture of $100\,000, together with interest accrued up to that date.