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

Preparation of financial statements — practice question

The Seagulls Boating Club is a small not for profit organisation that earns income from members’ subscriptions and a café.
(a)[2]

State two differences between the financial statements of a not for profit organisation and those of a limited company.

(b)[5]

Prepare the café trading account for the year ended 31 March 2016.

(c)[4]

Prepare the subscriptions account for the year ended 31 March 2016.

(d)[5]

Prepare the income and expenditure account for the year ended 31 March 2016.

(e)[9]

Recommend to the treasurer whether he should introduce a computerised accounting system or not. Support your answer by analysing both the benefits and the limitations for the club.

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