Adjustments to Draft Financial Statements

Worked examples (10)

• 1Charge from a trial balance (4 marks)
• 2Record the adjustment (3 marks)
• 3Show it in both statements (5 marks)
• 4Straight-line adjustment (4 marks)
• 5Allocate the charge in a company (5 marks)
• 6Adjustment with an addition (6 marks)
• 7Effect of omitting depreciation (5 marks)
• 8Two assets, two methods (6 marks)
• 9Concepts behind the adjustment (4 marks)
• 10Full adjustment from a trial balance (7 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Write off an irrecoverable debt (3 marks)
• 2Increase in allowance (4 marks)
• 3Decrease in allowance (4 marks)
• 4Allowance as a % of receivables (5 marks)
• 5Show net receivables (5 marks)
• 6Recovery of a written-off debt (4 marks)
• 7Net charge with all three items (6 marks)
• 8Concept behind the allowance (4 marks)
• 9Write-off vs allowance (4 marks)
• 10Effect of omitting the allowance change (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style

Worked examples (10)

• 1Charge with a closing prepayment (3 marks)
• 2Charge with a closing accrual (3 marks)
• 3Charge with opening and closing balances (5 marks)
• 4Prepare the expense account (5 marks)
• 5Show the balances in the SOFP (4 marks)
• 6Charge with all four elements (6 marks)
• 7Effect of omitting an accrual (5 marks)
• 8Work back to the amount paid (5 marks)
• 9Concept behind the adjustment (4 marks)
• 10Adjust two expenses (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Income with accrued income (3 marks)
• 2Income received in advance (3 marks)
• 3Classify income balances (4 marks)
• 4Income with opening and closing balances (5 marks)
• 5Prepare the income account (5 marks)
• 6Show the balances in the SOFP (4 marks)
• 7Effect of omitting accrued income (5 marks)
• 8Effect of omitting received-in-advance (5 marks)
• 9Work back to the amount received (5 marks)
• 10Concept behind income in advance (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style