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

Preparation of financial statements — practice question

Lee, who is a sole trader, gave the following details taken from his books of account on 30 April 2019. More information is also provided.
(a)[13]

Prepare Lee’s income statement for the year ended 30 April 2019, and use the space on the next page for your workings.

(b(i))[4]

Prepare the current assets as they would appear in Lee’s statement of financial position at 30 April 2019.

(b(ii))[4]

Prepare the current liabilities as they would appear in Lee’s statement of financial position at 30 April 2019.

(c)[4]

State two benefits and two drawbacks of trading as a sole trader.

(d)[5]

Advise Lee on which option he ought to choose. Justify your answer.

Worked solution & mark scheme

This 30-mark question has a full step-by-step worked solution and mark scheme. One marking point: Revenue totals $161 800

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI