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

Preparation of financial statements — practice question

Eleni runs a business that sells computers. She does not keep complete accounting records. The information below is given.
(a)[2]

Calculate the total revenue for the year ended 30 June 2021.

(b)[3]

Prepare the cash account to work out the amount paid in cash for general expenses.

(c)[15]

Prepare an income statement for the year ended 30 June 2021.

(d)[5]

Prepare an extract from the statement of financial position at 30 June 2021 showing only the capital and liabilities section.

(e)[5]

Advise Eleni on whether she should increase her prices by $5\%$. Justify your answer.

(f)[3]

State three factors that a business should take into account when making a provision for doubtful debts.

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