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

Preparation of financial statements — practice question

Refer to Source A1 in the insert.
(a)[1]

Calculate the draft profit for the year using the trial balance figures.

(b)[5]

Calculate the corrected profit for the year ended 31 December 2020. Begin with your answer to (a).

(c)[17]

Prepare the statement of financial position at 31 December 2020 after allowing for all relevant information. Use the space on the next page for your workings.

(d)[2]

Explain how your treatment of the bonus issue might have been different if the trial balance had shown a balance of $\$8000$ on a share premium account.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI