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

Preparation of financial statements — practice question

Refer to Source A1 in the insert.
(a)[2]

State two reasons why a club needs a clear objective.

(b)[4]

Explain how the tuition fees of $8000$ are to be recorded in the revised financial statements of MN Drama Club. Support your answer by referring to the relevant accounting concept.

(c)[12]

Prepare the amended income and expenditure account for the year ended 31 December 2021.

(d)[7]

Advise the chairman whether he ought to carry out the plan. Justify your response.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: It helps the club make sure it has suitable plans / strategies

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI