Accounting 0452 · IGCSE · Limited companies

Limited companies — practice question

B Limited supplies cleaning services to client offices and factories. The clients supply their own cleaning materials. The trial balance of B Limited at 30 June 2023 appears below.
(a)[6]

Prepare B Limited's income statement for the year ended 30 June 2023.

(b)[5]

Prepare the statement of changes in equity for B Limited for the year ended 30 June 2023.

(c(i))[2]

Explain why B Limited does not have any inventory.

(c(ii))[2]

Explain why B Limited does not need a provision for doubtful debts.

(d)[5]

Advise the directors on whether they ought to issue debentures or ordinary shares. Justify your answer.

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