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

Preparation of financial statements — practice question

Study Source A3 in the insert.
(a)[4]

Prepare a summarised income statement for the year ended 31 March 2022.

(b)[6]

Identify the two items from information items $1$ to $8$ that need disclosure by note to the accounts. Explain why each is treated in that way.

(c)[2]

State the meaning of the term ‘contingent asset’. Illustrate your answer with an example.

(d)[7]

Calculate the correct profit for the year. Begin with the draft profit from your answer to (a).

(e)[3]

Prepare the journal entry for information item $6$ from the list provided. Include a narrative.

(f)[3]

Calculate the correct amount of trade receivables at 31 March 2022.

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