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

Preparation of financial statements — practice question

The details below are given for a limited company on 31 December 2020: Non-current assets $200\,000$ Shareholders’ equity $170\,000$ $5\%$ debentures (2028) $40\,000$ Bank loan $150\,000$ The bank loan is to be repaid in five equal annual instalments, with the first instalment due on 1 June 2021. What was the total working capital on 31 December 2020?

  • A$120\,000$
  • B$130\,000$
  • C$160\,000$
  • D$190\,000$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI