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

Preparation of financial statements — practice question

Ahmed operates as a sole trader and does not keep complete accounting records. He was given the information below for the year ended 30 June 2024.
(a)[17]

Prepare the statement of profit or loss for the year ended 30 June 2024. Use the space provided on page 4 to show your workings.

(b)[6]

Explain, with reference to an accounting concept, why adjustments 5, 6 and 11 on page 2 had to be reflected in the financial statements.

(c)[7]

Advise Ahmed whether he should go ahead with either of these options. Justify your advice by discussing both financial and non-financial factors.

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