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

Preparation of financial statements — practice question

Bilal supplied the following details for his service business for the year ended 31 December 2024.
(a)[14]

Prepare the statement of profit or loss for the year ended 31 December 2024. Use the space provided on page 4 to set out your workings.

(b)[7]

Prepare an extract from the statement of financial position at 31 December 2024, showing only the assets section.

(c(i))[2]

Explain, with reference to an accounting concept, why Bilal keeps an allowance for irrecoverable debts.

(c(ii))[2]

Explain, with reference to an accounting concept, why Bilal always uses the same depreciation method for every class of non-current asset.

(d)[5]

Advise Bilal which option he should select. Justify your answer by discussing both options.

Worked solution & mark scheme

This 30-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI