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

Preparation of financial statements — practice question

Under IAS 1 Presentation of financial statements, notes to the accounts are expected to form part of the financial statements.
(a)[3]

State three benefits to shareholders of including notes to the accounts within the financial statements.

(b(i))[7]

Calculate the depreciation charge for the year ended 30 September 2017 on buildings.

(b(ii))[7]

Calculate the depreciation charge for the year ended 30 September 2017 on fixtures and fittings.

(b(iii))[7]

Calculate the depreciation charge for the year ended 30 September 2017 on motor vehicles.

(c)[8]

Prepare the property, plant and equipment note for the statement of financial position at 30 September 2017. Total columns must be included.

(d)[7]

Advise the directors which option is the most suitable for financing the purchase of land. Justify your answer.

Worked solution & mark scheme

This 39-mark question has a full step-by-step worked solution and mark scheme. One marking point: Give extra information at the end of the financial statements

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