Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
The balances below were taken from the books of T plc after the statement of profit or loss for the year ended 31 December 2024 had been prepared. Retained earnings include a draft profit figure of $104800. It was later found that some errors had been made while preparing the statement of profit or loss.
(a)[7]
Calculate the revised profit for the year ended 31 December 2024.
(b)[7]
Complete the statement of changes in equity for the year ended 31 December 2024.
(c)[9]
Prepare the statement of financial position at 31 December 2024.
(d)[7]
Advise the directors which option they should choose. Support your choice by weighing up the advantages and disadvantages of both options.
Worked solution & mark scheme
This 30-mark question has a full step-by-step worked solution and mark scheme.