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

Preparation of financial statements — practice question

R Limited is a retail business.
(a)[3]

Explain what is meant by 8% debentures (2025-2026).

(b)[10]

Prepare the statement of changes in equity for the year ended 30 September 2022.

(c)[2]

Explain why dividends proposed at the end of a financial year do not appear in a company’s statement of financial position.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Loan due for repayment between 2025 and 2026

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