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

Preparation of financial statements — practice question

The balances below were taken from the draft financial statements of H Limited at 30 September 2022.
(a)[3]

Prepare the journal entry for the bonus issue of shares. Dates and narration are not needed.

(b)[4]

Calculate the net book value for plant and machinery at 30 September 2022.

(c)[4]

Calculate the adjusted cash and cash equivalents balance at 30 September 2022.

(d)[5]

Calculate the adjusted retained earnings balance at 30 September 2022.

(e)[8]

Prepare the statement of financial position as at 30 September 2022. H Limited Statement of Financial Position at 30 September 2022

(f)[4]

Explain two distinctions between capital reserves and revenue reserves.

(g)[2]

Explain one accounting concept used when a provision for doubtful debts is made.

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