Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Ross, who is a sole trader, runs a business that sells computer equipment. He has already prepared the income statement below for the year ended 31 March 2017, and it contains errors.
(a)[13]
Prepare the corrected income statement for the year ended 31 March 2017 using the information provided.
(b)[13]
Prepare the statement of financial position at 31 March 2017, taking into account all relevant information and the information from part (a).
(c)[4]
Advise Ross whether he ought to create a provision for doubtful debts or not. Justify your answer.
Worked solution & mark scheme
This 30-mark question has a full step-by-step worked solution and mark scheme.