Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
A Social Club organises activities for elderly people. It also serves meals for them and arranges coach trips. The club’s ledger accounts for the year ended 31 December 2017 included the following:
(a)[4]
State two ways in which a club and a limited company differ.
(b)[7]
Prepare the income and expenditure account covering the year ended 31 December 2017.
(c)[10]
Prepare the statement of financial position at 31 December 2017.
(d)[4]
Advise the management committee on whether or not it should increase the price of the coach trip tickets. Support your answer with a reason.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme.