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

Preparation of financial statements — practice question

X Limited is a wholesaler of sports goods. The company's directors have supplied information for the year ended 30 April 2019.
(b(i))[3]

Calculate the closing inventory amount at 30 April 2019.

(b(ii))[1]

Calculate the trade receivables balance at 30 April 2019.

(b(iii))[2]

Calculate the trade payables balance at 30 April 2019.

(c)[3]

Prepare the income statement for X Limited for the year ended 30 April 2019.

(d)[3]

Calculate the proceeds received by X Limited from the rights issue.

(a(i))[2]

Calculate the value of issues to production on 5 March by using the First In First Out (FIFO) method.

(a(ii))[3]

Calculate the value of issues to production on 23 March by using the First In First Out (FIFO) method.

(a(iii))[1]

Calculate the value of closing inventory at 31 March.

(e)[7]

Prepare a statement showing the total selling price that Jessie will quote to the customer.

(f)[5]

Advise Jessie whether or not she should accept the offer. 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: Straightforward to calculate

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