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

Preparation of financial statements — practice question

T Limited’s financial year concluded on 30 June 2024.
(a)[15]

Prepare the statement of profit or loss for the year ending 30 June 2024. Use the space on page 5 to show your workings.

(b)[4]

Calculate the cash and cash equivalents balance at 30 June 2024.

(c)[6]

Prepare an extract from the statement of financial position at 30 June 2024 to show only the equity and liabilities section.

(d)[5]

Assess the directors’ decision on 30 June 2024 to take out the 5% debenture (2028-2029). Justify your assessment by weighing up both the advantages and the disadvantages of this decision for the company.

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