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

Preparation of financial statements — practice question

Refer to Source A2 in the insert.
(a)[18]

Prepare the corrected statement of financial position as at 31 December 2021.

(b)[2]

Indicate whether the two events listed in point 6 of the additional information are adjusting or non-adjusting events. 5 January 2022 6 January 2022

(c)[2]

Explain why a business may choose to revalue its non-current assets.

(d)[3]

Advise the directors whether they ought to make a provision for doubtful debts. Support your view.

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