Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Hamid and Patel deal with one another on a regular basis. Hamid dispatched goods to Patel on consignment. Information about sales, expenses and settlement is provided.
(a(i))[1]
Prepare the goods sent on consignment account in Hamid's books at 31 March 2015.
(a(ii))[11]
Prepare the consignment to Patel account in Hamid's books at 31 March 2015.
(a(iii))[7]
Prepare the Patel account in Hamid's books at 31 March 2015.
(b)[2]
Analyse how the irrecoverable debt incurred during the year affects profit.
(c)[4]
Advise whether Hamid and Patel should go into partnership with each other or not. 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: “Consignment to Patel shown as $12\,000$” …