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

Preparation of financial statements — practice question

S Limited is a private limited company. The directors have prepared the following information at 30 September 2019.
(a)[12]

Prepare the income statement for the year ended 30 September 2019. Use the space on the next page to set out your workings.

(b)[10]

Prepare the statement of financial position at 30 September 2019. Use the space provided on the next page to show your workings.

(c)[3]

Explain the term "6% debentures (2021-2022)", as shown in S Limited’s financial statements.

(d)[5]

Advise the directors which option they ought to choose. Justify your answer.

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