Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
A Social Club offers activities for elderly people. It also supplies meals for them and arranges coach trips.
(a)[4]
State two differences between a club and a limited company.
(b)[7]
Prepare the income and expenditure account for the year ending 31 December 2017.
(c)[10]
Prepare the statement of financial position at 31 December 2017.
(d)[4]
Advise the management committee whether it should increase the price of the coach trip tickets. Justify your answer.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A club exists to serve its members; a company aims to make profit” …