O-LevelAccountingPreparation of financial statementsOct/Nov 2020Paper 2 Q320 Marks
JP Limited's financial year ended on 30 September 2020. The following balances were available at that date. | $ --- | --- 7% debentures (2026) | 20000 Administrative expenses | 44000 Carriage inwards | 1500 Distribution costs | 38000 Debenture interest paid | 700 Inventory at 1 October 2019 | 66000 Non-current assets at book value at 1 October 2019 | 610000 Provision for doubtful debts | 1000 Purchases | 263000 Revenue | 529500 Trade receivables | 80500 Additional information 1 Inventory at 30 September 2020 was valued at $59 000. 2 Interest on the 7% debentures (2026) had been paid up to 31 March 2020. 3 Administrative expenses included rates of $1200 for the six months ending 31 March 2021. 4 Distribution costs of $800 were outstanding at 30 September 2020. 5 Non-current assets should be depreciated by 10% per annum using the reducing balance method. 6 Irrecoverable debts of $500 are to be written off. 7 The directors wish to maintain the provision for doubtful debts at 2% of trade receivables. REQUIRED
✓ Correct Answer
The correct answer is —. This question tests the candidate's understanding of preparation of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep