A Level · Accountancy · Chapter 18

Ch 18 Limited Companies: Share Issues, Reserves and Statements of Cash Flows: complete notes

Neat, exam-ready notebook-style notes for Ch 18 Limited Companies: Share Issues, Reserves and Statements of Cash Flows, following the Cambridge A Level 9706 syllabus, AS and A Level. This chapter is part of the complete A Level Accounting 9706 Complete Notes: All 25 Chapters, AS and A Level (Cambridge 2026–2028).

Free preview: Ch 18 Limited Companies: Share Issues, Reserves and Statements of Cash Flows notes

A quick look at the chapter from our A Level Accountancy notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.

Topics in this chapter

1. 3.1.5 Limited companies
2. Share capital
3. Issuing shares
4. Reserves
5. The schedule of non-current assets
6. Statement of profit or loss and statement of changes in equity
7. The statement of cash flows (IAS 7)

“I can” checklist: what you must be able to do

• record share issues, rights issues and bonus issues by journal
• explain capital and revenue reserves and their uses
• record a revaluation and calculate the surplus
• treat interim, final and proposed dividends correctly
• prepare a company statement of profit or loss (IAS 1)
• prepare a statement of changes in equity with several events
• prepare a schedule of non-current assets
• prepare a company statement of financial position
• derive the figures for, and prepare, a statement of cash flows
• evaluate share issues, debentures, dividends and cash position

What is inside the full chapter notes

• Notes on share capital, share issues, reserves and dividends; the five company statements with model layouts; 8 worked examples
• Exam skills for Paper 3; common mistakes from the examiner report
• 20 exam-style multiple-choice questions, explained
• Two Paper 3 style questions (25 marks each) with full mark schemes; quick reference and "I can" checklist

See real pages (free sample)

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What you get in the pack

• All 25 chapters of the Cambridge International AS & A Level Accounting 9706 syllabus (exams 2026–2028): business entities, double entry, non-current assets, trial balance and errors, bank reconciliation, control accounts, adjustments, sole trader, partnership and limited company accounts, ratios, costing, absorption and marginal costing, partnership changes, clubs, manufacturing accounts, statements of cash flows, IAS and auditing, mergers, activity based costing, standard costing, budgeting and investment appraisal
• Every syllabus statement covered in order, each marked AS or A Level, with clear notes, tables and diagrams drawn for these notes
• 8 worked examples in every chapter: calculations and model answers that show how to earn the marks
• Exam skills for every paper (layouts, workings, own-figure marks, advise and evaluate answers) and common mistakes taken from Cambridge examiner reports
• 20 multiple-choice questions per chapter with answers and explanations
• Original exam-style structured questions in the style of Papers 1–4 with full mark schemes and complete answer layouts (no past-paper reprints)
• Quick-reference sheet and an "I can" checklist at the end of every chapter
• Colour PDF and a black and white copy of every chapter for printing
• Independent notes; not endorsed by or affiliated with Cambridge University Press & Assessment

All chapters in this pack

1. Ch 1 Types of Business Entity
2. Ch 2 The Accounting System and Accounting Concepts
3. Ch 3 Accounting for Non-current Assets
4. Ch 4 Trial Balance, Errors and Suspense Accounts
5. Ch 5 Bank Reconciliation Statements
6. Ch 6 Control Accounts
7. Ch 7 Adjustments to Financial Statements
8. Ch 8 Financial Statements of Sole Traders
9. Ch 9 Partnership Accounts
10. Ch 10 Limited Company Accounts
11. Ch 11 Analysis and Communication of Accounting Information
12. Ch 12 Costs and Cost Behaviour: Materials and Labour
13. Ch 13 Costing Applications and Absorption Costing
14. Ch 14 Marginal Costing and Cost-Volume-Profit Analysis
15. Ch 15 Partnerships: Goodwill, Changes and Dissolution
16. Ch 16 Clubs and Societies
17. Ch 17 Manufacturing Accounts
18. Ch 18 Limited Companies: Share Issues, Reserves and Statements of Cash Flows
19. Ch 19 International Accounting Standards, Ethics and Auditing
20. Ch 20 Business Acquisition, Merger and Computerised Accounting Systems
21. Ch 21 Analysis and Interpretation of Financial Statements
22. Ch 22 Activity Based Costing
23. Ch 23 Standard Costing and Variance Analysis
24. Ch 24 Budgeting and Budgetary Control
25. Ch 25 Investment Appraisal