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

Preparation of financial statements — practice question

The information below has been taken from the statement of financial position of a limited company. $6\%$ debenture (2026-2028) $20\,000$ $400\,000$ ordinary shares of $\$1$ each $400\,000$ 5-year bank loan $200\,000$ Share premium account $50\,000$ Retained earnings $75\,000$ Calculate the value of total equity.

  • A$525\,000
  • B$545\,000
  • C$695\,000
  • D$725\,000

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