The Sage Course Companion on Financial Accounting is an accessible introduction to the subject that will help readers to master key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces.

Preparing the Final Accounts (Worked Example)

Preparing the Final Accounts (Worked Example)

Preparing the final accounts (worked example)

You are now in a position to prepare a profit and loss account and balance sheet as might be required in a typical exam question.

Work through every entry paying careful attention to the layout of the profit and loss account and balance sheet.

In this question, you are dealing with a public limited company (Plc) rather than a sole trader. Therefore, you should expect to find entries in the trial balance for share capital and dividends. Remember to put both the interim and final dividends at the bottom of the trading and profit and loss account and put the share capital and outstanding (unpaid) dividends in the balance sheet.

Worked Example: Tasty Cakes Plc

Tasty Cakes Plc is ...

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