Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
AH Limited has completed its trial balance for the year ending 30 September 2017.
(a)[3]
Explain how a bonus issue of shares differs from a rights issue of shares.
(b)[7]
Calculate the profit for the year ended 30 September 2017.
(c)[8]
Prepare the statement of changes in equity at 30 September 2017 (a total column is not required).
(d)[7]
Prepare the statement of financial position for 30 September 2017.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A bonus issue costs nothing, so it does not raise additional funds” …