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

Preparation of financial statements — practice question

The directors of K Limited are getting the financial statements ready for the year ended 31 October 2019. The information below is provided.
(a)[11]

Complete the income statement for the year ended 31 October 2019. Use the space on the next page to show your workings.

(b)[7]

Prepare the statement of changes in equity for the year ended 31 October 2019.

(c)[3]

State three advantages to the shareholders of trading as a limited company.

(d)[4]

Assess the performance of Q plc using these ratios.

(e)[5]

Advise the director whether the company ought to proceed with the proposal to repay the debentures. Justify your answer.

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