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

Preparation of financial statements — practice question

The directors of Rebuild Limited are in the process of preparing the financial statements for the year ended 31 December 2015.
(a)[5]

Prepare the statement of changes in equity for the year ended 31 December 2015.

(b)[4]

Prepare the statement of changes in equity for the 6 months ended 30 June 2016.

(c)[4]

State two differences between ordinary shares and debentures.

(d)[1]

State the significance of $(2018-2020).

(e)[1]

State why an issue of debentures does not appear in the statement of changes in equity.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Correct share capital and share premium entries

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