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

Preparation of financial statements — practice question

P Limited markets electronic goods through its online business. The directors supplied the information below.
(a)[15]

Draw up the statement of profit or loss for the year ended 31 July 2023. Use the space provided to set out your workings.

(b)[6]

Draw up the statement of changes in equity for the year ended 31 July 2023.

(c)[2]

State two examples of revenue reserves of a limited company.

(d)[7]

Advise the directors whether they were right to make a bonus issue of shares instead of making a new issue of shares. Support your response.

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