Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Ismail began a retail business on 1 January 2019 with the assets and liabilities shown below. He then drafted an income statement for the year ended 31 December 2019, but it included errors.
(a)[15]
Prepare the corrected income statement for the year ended 31 December 2019.
(b)[4]
Calculate the amount shown on Ismail’s capital account at 31 December 2019.
(c)[7]
Advise Ismail which option he ought to select. Justify your answer.
(d)[4]
State four advantages to a business of maintaining a complete set of accounting records.
Worked solution & mark scheme
This 30-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Sales revenue $274 500” …