11: Company Financial Statements

Question 1

explain equity share capital and dividends in terms of equity shares and preferences shares

Answer 1

Question 2

what are the account entries for dividends

Answer 2

Question 3

what is the key journal for accounting for dividends

Answer 3

Question 4

explain the retained earning ledger

Answer 4

Question 5

double entry for a bonus issue

Answer 5

Question 6

explain non-current liabilities

Answer 6

Question 7

explain accounting for non-current liabilities:

on issue of debt

on repayment of debt

interest paid

outstanding interest owed

Answer 7

Question 8

what to do if you are told a loan is repaid through the issue of shares REAL EXAM Q

Answer 8

Question 9

what are provisions

Answer 9

Question 10

explain the accounting, ‘create provision based on best estimate of amounts payable’ ‘incur expenditure’ ‘remove excess provision’

Answer 10

Question 11

In the accounting exam you may be asked to increase or decrease a provision, often a warranty
provision, from an existing balance in the trial balance. explain for an increase and decrease in provision

Answer 11

Question 12

dr and cr for tax charge estimated

Answer 12