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

Preparation of financial statements — practice question

Consult Source A1 in the Insert.
(a)[7]

Prepare the income and expenditure account for the year ending 30 June 2018.

(b)[2]

State two differences between an income and expenditure account and a receipts and payments account.

(c)[7]

Prepare the statement of financial position as at 30 June 2018.

(d)[4]

Calculate the restaurant cash surplus or deficit for the year ended 30 June 2018.

(e)[5]

Evaluate whether the club ought to fund the improvement with members’ loans or a bank loan. Support your answer.

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