Step-by-step guide for Preparation of Financial Statements SOPL and SOFP (July 2024)

Step 1 - Read the questions

Step 2 - Prepare the SOPL & SOFP

Step 3 - Insert items that not highlighted in SOPL and SOFP

Step 4 - Dealing with adjustments - Inventory

Step 5 - Dealing with adjustments - Rent

Step 6 - Dealing with adjustments - Depreciation

Step 7 - Dealing with adjustments - Accounts Receivables & Bad Debts

Step 8 - Dealing with adjustments - interest on loan still accrued

Step 9 - Dealing with adjustments - interest income

Step 10 - Dealing with adjustments - More Accruals & Prepayments

Step 11 - Net profit calculated in SOPL is transferred to the capital/equity section in SOFP.