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

Preparation of financial statements — practice question

V plc had share capital comprising 450000 ordinary shares of $1$ each. Market and accounting data are given.

(a)[3]

Calculate profit for the year ended 31 December 2018.

(b)[15]

Prepare the statement of financial position at 31 December 2018. (Use cash at bank as the balancing figure.)

(c)[2]

Calculate price earnings ratio.

(d)[5]

Assess V plc and T plc on profitability and on how efficiently inventory is managed.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme.