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

Preparation of financial statements — practice question

Refer to Source A2 in the insert.

(a)[8]

Prepare a statement to show the ‘profit for the year’ for the year ended 31 December 2021.

(b(i))[3]

Part 3.

(b(ii))[3]

Part 4.

(c)[2]

State one distinction between a rights issue and a bonus issue of shares.

(d)[9]

Prepare the statement of changes in equity for the year ended 31 December 2021; a total column is unnecessary.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Profit from operations totals $98 000” …