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

Preparation of financial statements — practice question

Refer to Source A2 in the insert.
(a)[10]

Prepare the equity and liabilities part of the statement of financial position at 31 December 2020.

(b(i))[4]

Calculate the profit for the year ended 31 December 2020.

(b(ii))[3]

Calculate the profit from operations for the year ended 31 December 2020.

(c)[4]

Explain two accounting ratios that need the value of profit from operations.

(d(i))[2]

State how the proposed dividend will be treated in the books of account.

(d(ii))[2]

State how the proposed dividend will be treated in the financial statements.

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