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

Preparation of financial statements — practice question

K Limited's directors supplied the information as at 31 December 2018.
(a(i))[1]

Identify the accounting concept that applies to item 1.

(a(ii))[1]

Identify the accounting concept that applies to item 2.

(b)[9]

Prepare a statement showing the revised profit for the year ended 31 December 2018.

(c)[4]

Calculate the net book value of motor vehicles at 31 December 2018.

(d)[10]

Prepare the statement of financial position at 31 December 2018.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Item 1 – matching / accrual concept

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