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

Preparation of financial statements — practice question

Read Source A in the insert provided.
(a)[2]

Calculate the partnership profit for the year ended 31 March 2022.

(b)[10]

Use page 3 to prepare the partners’ capital accounts and show the closing entries. Put your workings in the space provided for workings.

(c)[4]

Calculate the amount paid by J Limited into the partnership bank account.

(d)[4]

Prepare the partnership bank account to record the closing entries.

(e)[5]

Advise whether J Limited should continue with the expansion strategy. Justify your answer.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Interest on capital figures: Alan $300 000 \times 4% = $12 000; Betty $240 000 \times 4% = $9 600

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