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

Preparation of financial statements — practice question

Read Source A1 from the insert.
(a)[7]

Prepare the full subscriptions account for the year ended 31 December 2020.

(b)[7]

Prepare the income and expenditure account for year ended 31 December 2020.

(c)[5]

Advise the managing committee on whether the new policy on unpaid subscriptions ought to be continued. Justify your answer.

(d)[4]

Prepare the refreshments trading account for the year ended 31 December 2020, using sales as the balancing figure.

(e)[2]

State two reasons why a club or society might carry out a trading activity.

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