Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The AB Cricket Club draws up its financial statements every year.
(a)[3]

Identify three differences in the wording used in the financial statements of a club as opposed to those of a profit-making organisation.

(b)[6]

Prepare the trading account for the snack bar for the year ended 31 December 2016.

(c)[7]

Prepare the account for Subscriptions for the year ended 31 December 2016.

(d)[4]

Identify four actions, other than sponsorship, that the club could take to finance the repair of the buildings.

(e)[5]

State the advantages and disadvantages for the club if the proposed sponsorship is taken up.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Surplus of income over expenditure is used rather than profit.

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