Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Haroon and Rakesh are partners who supply cleaning services to local businesses. Their business began on 1 January 2023, when the partners brought in assets. They have not kept complete accounting records. Figures for the year ended 31 December 2023, together with extra information, are given.
(a)[3]
Calculate the total revenue earned in the year ended 31 December 2023.
(b)[10]
Prepare the statement of profit or loss for Haroon and Rakesh for the year ended 31 December 2023.
(c)[4]
Prepare an extract from the statement of financial position at 31 December 2023 that shows only the current assets section.
(d)[6]
Calculate Rakesh’s capital account balance at 31 December 2023.
(e)[7]
Advise the partners on whether they ought to keep a full accounting system using an accounting software package. Justify your answer.
Worked solution & mark scheme
This 30-mark question has a full step-by-step worked solution and mark scheme.