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

Preparation of financial statements — practice question

Ahmed operates a manufacturing business in Singapore that makes computer screens. The information relates to consignments sent to India.
(a)[2]

Calculate the value per unit at which the screens are transferred from Singapore to India.

(b(i))[3]

Prepare a concise Bank account showing the entries in Ahmed’s books that relate to the consignment.

(b(ii))[7]

Prepare the consignment account for the transaction.

(b(iii))[5]

Prepare Rohan’s account.

(c)[8]

Advise Ahmed on whether he ought to carry on with the consignment arrangement with Rohan. Support your answer with relevant calculations and with reference to non-financial factors.

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