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

Preparation of financial statements — practice question

Consult Source A4 in the Insert.
(a)[4]

Prepare the summarised equity and liabilities part of the draft statement of financial position of W plc at 31 December 2019.

(b)[3]

Calculate the draft profit for the year to 31 December 2019.

(c)[10]

Prepare the draft statement of changes in equity for the year ended 31 December 2019. No total column is needed.

(d)[4]

Define what is meant by the terms ‘adjusting events’ and ‘non-adjusting events’ under IAS 10.

(e)[4]

Explain the proper accounting treatment for the $8000 owed by a customer who was declared bankrupt at 31 December 2019.

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