1.5. Preparation of financial statements
A subsection of Accounting, 9706, through 1. Financial accounting (AS Level)
Listing 10 of 637 questions
A company provided the following information for the financial year ended 31 December. 31 December $ 1 January $ ordinary share capital ($1 shares) − share premium − general reserve retained earnings During the year a bonus issue of one ordinary share for every five ordinary shares was made. It is the company’s policy to keep its reserves in the most flexible form. A dividend of $0.15 per share was paid during the year on all ordinary shares held on 1 January. What was the profit for the year?
9706_w24_qp_13
MCQ
2024
Paper 1, Variant 3
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The draft profit of L plc for the year ended 30 June 2024 was calculated at $58 340. The directors have discovered some errors in the accounting records. The draft profit had been calculated before correcting the following: Closing inventory had been overstated by $2800. Returns outwards of $570 had been debited to the Purchases account. Distribution costs included a payment of $4320 for advertising covering the three years ending 31 March 2027. Calculate the revised profit for the year ended 30 June 2024. Additional information The share capital of L plc comprised ordinary shares of $0.50 each. During the year ended 30 June 2024 the following transactions took place. Date Transaction 31 August 2023 Paid a final dividend of $0.05 per share on all shares in issue at that date. 31 December 2023 Made a bonus issue of one ordinary share for every seven shares held at that date. The directors decided to leave the reserves in the most flexible form. 31 March 2024 Paid an interim dividend of 2% on all shares in issue at that date. 31 March 2024 Made a rights issue of one ordinary share for every four shares held at a premium of $0.20 per share. The rights issue was fully taken up. 30 June 2024 Property was revalued downwards by $8000. The value of ordinary share capital at 30 June 2024 was $200 000. Calculate the value of ordinary share capital at 1 July 2023. Complete the statement of changes in equity for the year ended 30 June 2024. L plc Statement of changes in equity for the year ended 30 June 2024 Share capital $ Share premium $ Revaluation reserve $ Retained earnings $ Total $ At 1 July 2023 19 200 6 500 18 400 Final dividend Bonus issue Interim dividend Rights issue Revaluation Profit for the year At 30 June 2024 200 000
9706_w24_qp_22
THEORY
2024
Paper 2, Variant 2
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The following balances have been extracted from the records of N plc at 1 October 2023. $ Share capital (ordinary shares of $0.50 each) 250 000 Share premium 13 400 Retained earnings 71 800 The following transactions took place during the year ended 30 September 2024. 1 November 2023 Issued 50 000 ordinary shares at $0.70 each. 1 March 2024 Made a rights issue of one ordinary share for every five shares held at that date at an issue price of $0.65. The issue was fully subscribed. 1 May 2024 Paid a final dividend of $0.02 per share on all shares in issue at that date. 1 July 2024 Made a bonus issue of one ordinary share for every eight shares held at that date. The profit for the year ended 30 September 2024 was $41 800. Prepare the following accounts for the year ended 30 September 2024. Dates are not required. Share capital Details $ Details $ State two features of a debenture. State two features of ordinary shares.
9706_w24_qp_23
THEORY
2024
Paper 2, Variant 3
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Questions Discovered
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