Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
The balances shown below were recorded in the books of P plc on 1 April 2024. In the year ending 31 March 2025, the events below took place. By 31 March 2025, share capital stood at 840 000 ordinary shares of $1 each.
(a)[2]
Calculate the number of issued ordinary shares at 1 April 2024.
(b)[10]
Prepare the following ledger accounts to record the transactions in the year ended 31 March 2025: Share premium account; Retained earnings account.
(c)[3]
State three factors that directors should take into account when setting the amount to be paid as a final dividend.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme.