OxfordAQA A-Level Accounting: Limited company accounts (9615) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

Practise section 3.1.7, Limited company accounts, of the OxfordAQA International AS and A-level Accounting (9615) specification, Version 1.2, for International AS exams May/June 2025 onwards and International A-level exams May/June 2026 onwards. This International AS section is examined, according to the specification, in Paper 2: Financial & Management Accounting. Company names and figures are fictional, in dollars.

Before attempting these, work through the study guide and the revision notes. You will find the course hub at /boards/oxfordaqa/a-level/accounting/, the checklist at /checklists/oxfordaqa/a-level/accounting/, and the free diagnostics, which help you decide what to practise.

Questions

1. Sennick Drones Ltd issues 240,000 ordinary shares with a nominal value of 0.10 each at an issue price of 0.38 each. All cash is received. Calculate the amounts credited to ordinary share capital and to share premium, and the amount debited to the bank account. [3]

2. State the sub-heading in a limited company’s statement of financial position under which each item appears.

(a) 7% debentures repayable in 2034 [1] (b) Taxation owing at the year end [1] (c) Share premium [1] (d) Rent paid in advance [1]

3. Explain why dividends paid by a limited company do not appear in its income statement. [2]

4. For its year to 31 January 2026, Tolsey Teas Ltd reports: revenue 318,000; cost of sales 171,500; expenses (excluding interest) 94,750; taxation 9,100. The company has 75,000 of 6% debentures; only 2,250 of debenture interest has been paid. Calculate the three profit figures the income statement must show. [5]

5. At 1 November 2024, the equity of Fairlop Cycles Ltd was: ordinary shares of 1.00 each 200,000; share premium 15,000; retained earnings 42,000. In the year to 31 October 2025 it issued 60,000 ordinary shares at 1.40 each, made a loss for the year after tax of 18,500 and paid dividends of 9,000. Draw up the company’s statement of changes in equity for that year. [6]

6. Kelsdale Pottery Ltd has ordinary shares with a nominal value of 0.50 each. Extracts from its records show:

	Start of year	End of year
Ordinary share capital	150,000	180,000
Share premium	12,000	42,000
Retained earnings	58,400	81,300

Profit for the year after tax was 34,900. There was one share issue during the year.

(a) Calculate the dividends paid during the year. [2] (b) Calculate the number of shares issued during the year. [2] (c) Calculate the issue price per share. [2]

7. A trainee at Brantsey Glass Ltd prepared this draft:

Gross profit                          190,000
Less: Operating expenses    120,600
      Dividends paid         14,000
      Debenture interest      3,000
                                      137,600
Profit for the year after tax          52,400

The company has 50,000 of 12% debentures, held for the whole year. Taxation for the year is 10,500. Calculate the corrected figures for all three profit lines: from operations, before tax and after tax. [6]

8. Explain two differences between the equity section of a limited company’s statement of financial position and the capital section of a sole trader’s statement of financial position. [4]

9. Hessle Bay Marine Ltd prepares its accounts to 30 September. On 1 October 2025 it borrowed 84,000 at 9% a year interest. The loan is repaid in seven equal annual instalments, the first on 30 September 2027. At 30 September 2026, interest has been paid only for the six months to 31 March 2026. Calculate the finance cost for the year, the interest owing, and the amounts shown under current liabilities and non-current liabilities for the loan itself. [4]

10. On 28 February 2026, Pitchcombe Opticians Ltd extracted this trial balance:

Account	Dr	Cr
Revenue		352,000
Purchases	188,400
Inventory at 1 March 2025	22,600
Wages	54,300
Directors’ remuneration	30,000
Rent	18,000
Sundry expenses	6,950
Debenture interest	2,100
Premises: cost / accumulated depreciation	180,000	21,600
Fixtures: cost / accumulated depreciation	45,000	13,500
Trade receivables / trade payables	28,400	19,750
Bank	9,800
Dividends paid	7,500
Ordinary shares of 1.00 each		90,000
Share premium		12,000
Retained earnings at 1 March 2025		24,200
7% debentures (repayable 2033)		60,000
Totals	593,050	593,050

At 28 February 2026: inventory 25,100; rent prepaid 1,500; depreciation on premises 2% on cost and on fixtures 10% on cost; taxation 9,250. No shares were issued during the year.

(a) Prepare Pitchcombe Opticians Ltd’s income statement for the year to 28 February 2026. [7] (b) Prepare its statement of changes in equity for that year. [3] (c) Prepare its statement of financial position at that date. [6]

Answers

1. Bank 240,000 x 0.38 = 91,200 [1]. Ordinary share capital 240,000 x 0.10 = 24,000 [1]. Share premium 240,000 x 0.28 = 67,200 [1]. [3] Examiner insight: Show the premium per share (0.28) in your working, then check that capital plus premium equals the cash received.

2. (a) Non-current liabilities [1] (b) Current liabilities [1] (c) Equity [1] (d) Current assets (other receivables) [1] [4] Examiner insight: Use the exact sub-heading names from the specification; “long-term” or “short-term” on its own may not be accepted.

3. Dividends are a distribution of profit to the shareholders (owners), not a cost of earning revenue [1]. So they are taken away from retained earnings, a movement recorded in the statement of changes in equity once the after-tax profit is known [1]. [2] Examiner insight: The second mark needs you to say where dividends do go; stating only “they are not an expense” gives half the answer.

4. Gross profit 318,000 - 171,500 = 146,500 [1]. Profit from operations 146,500 - 94,750 = 51,750 [1]. Finance cost 6% x 75,000 = 4,500, the full year, not the 2,250 paid [1]. Profit before tax 51,750 - 4,500 = 47,250 [1]. Profit after tax 47,250 - 9,100 = 38,150 [1]. [5] Examiner insight: Label each of the three profit lines with its full name; an unlabelled figure is hard to credit even when it is correct.

5. Opening balances [1]. Share capital 60,000 x 1.00 = 60,000 [1]; premium 60,000 x 0.40 = 24,000 [1]. Loss (18,500) [1] and dividends (9,000) [1] in retained earnings.

                    Share capital   Premium   Retained    Total
At 1 Nov 2024             200,000    15,000     42,000  257,000
Share issue                60,000    24,000              84,000
Loss for the year                              (18,500) (18,500)
Dividends paid                                  (9,000)  (9,000)
At 31 Oct 2025            260,000    39,000     14,500  313,500

Closing balances 260,000 / 39,000 / 14,500 / 313,500 [1]. [6] Examiner insight: Brackets matter: a loss shown without brackets and then added to retained earnings throws every later figure out.

6. (a) Opening retained earnings + profit - dividends = closing, so dividends = 58,400 + 34,900 - 81,300 [1] = 12,000 [1]. (b) Shares at start 150,000 / 0.50 = 300,000; at end 180,000 / 0.50 = 360,000 [1]; shares issued 60,000 [1]. (c) Premium per share (42,000 - 12,000) / 60,000 = 0.50 [1]; issue price 0.50 + 0.50 = 1.00 [1]. [6] Examiner insight: In (b), divide the increase in share capital by the nominal value (0.50), not by 1; share capital is recorded at nominal value only.

7. Remove dividends paid from the expenses [1]. Profit from operations 190,000 - 120,600 = 69,400 [1]. Finance cost 12% x 50,000 = 6,000 [1]. Profit before tax 69,400 - 6,000 = 63,400 [1]. Taxation deducted 10,500 [1]. Profit after tax 52,900 [1]. [6] Examiner insight: Set out the corrected three profit lines in full rather than adjusting the trainee’s single total.

8. First difference: a company’s equity is split into ordinary share capital, share premium and retained earnings [1], whereas a sole trader shows a single capital account that combines capital introduced and profit [1]. Second difference: a company’s owners receive dividends, deducted from retained earnings [1], whereas a sole trader’s drawings are deducted directly from capital [1]. [4] Examiner insight: Each difference needs both sides of the comparison, not just the company’s.

9. Finance cost 9% x 84,000 = 7,560 [1]. Interest owing 7,560 / 2 = 3,780, a current liability [1]. Instalment 84,000 / 7 = 12,000 due on 30 September 2027, so 12,000 under current liabilities [1] and 72,000 under non-current liabilities [1]. [4] Examiner insight: An instalment due within 12 months of the year end must be moved to current liabilities; showing the whole 84,000 as non-current loses that mark.

10. (a)

Revenue                                    352,000
Less: Cost of sales                        185,900
      (22,600 + 188,400 - 25,100)
Gross profit                               166,100
Less: Wages                     54,300
      Directors' remuneration   30,000
      Rent (18,000 - 1,500)     16,500
      Sundry expenses            6,950
      Depreciation: premises     3,600
      Depreciation: fixtures     4,500
                                           115,850
Profit from operations                      50,250
Less: Finance costs (7% x 60,000)            4,200
Profit for the year before tax              46,050
Less: Taxation                               9,250
Profit for the year after tax               36,800

Cost of sales [1]; gross profit [1]; rent [1]; both depreciation charges [1]; profit from operations 50,250 [1]; finance costs [1]; profit before and after tax 36,800 [1].

(b)

                Share capital  Premium  Retained    Total
At 1 Mar 2025          90,000   12,000    24,200  126,200
Profit for the year                       36,800   36,800
Dividends paid                            (7,500)  (7,500)
At 28 Feb 2026         90,000   12,000    53,500  155,500

Opening balances [1]; profit and dividends in retained earnings [1]; closing total 155,500 [1].

(c)

Non-current assets      Cost   Acc. dep.  Carrying
  Premises           180,000     25,200   154,800
  Fixtures            45,000     18,000    27,000
                                          181,800
Current assets
  Inventory                                25,100
  Trade receivables                        28,400
  Other receivables (rent prepaid)          1,500
  Cash and cash equivalents                 9,800
                                           64,800
Total assets                              246,600
Equity                                    155,500
Non-current liabilities: 7% debentures     60,000
Current liabilities
  Trade payables                           19,750
  Other payables (debenture interest)       2,100
  Taxation                                  9,250
                                           31,100
Total equity and liabilities              246,600

Non-current assets [1]; current assets [1]; equity [1]; debentures as non-current [1]; current liabilities including interest owing and taxation [1]; both totals 246,600 [1]. [16] Examiner insight: If you doubt an earlier figure, still carry your own profit after tax into (b) and your own closing equity into (c) rather than leaving gaps, so each statement is complete and correctly laid out.

Where marks are usually lost

• Dividends deducted as an expense instead of in the statement of changes in equity.
• Finance costs taken as the amount paid, not the full year’s charge.
• Interest owing or taxation owing left out of current liabilities.
• Profit before tax, rather than profit after tax, carried into retained earnings.
• A loan instalment due within 12 months left under non-current liabilities.
• Accumulated depreciation not updated for the current year’s charge before calculating carrying amounts.

Next steps

• Revise from the revision notes
• Reread the study guide
• OxfordAQA Accounting course hub
• Printable 9615 topic checklist
• Try all free 10-minute diagnostics
• Book a free trial class

Official syllabus

OxfordAQA International AS and A-level Accounting (9615) specification, Version 1.2, for International AS exams May/June 2025 onwards and International A-level exams May/June 2026 onwards, published by OxfordAQA – section 3.1.7, Limited company accounts.