Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Sunshine Social Club operates a gift shop. Items are sold only to members at a discounted price. Selected balances for the gift shop at 31 December are given, along with a summarised receipts and payments account and further information.
(a)[3]
State three ways in which a donation differs from a member subscription received by a not-for-profit organisation.
(b)[15]
Prepare the trading account for the club’s shop for the year ended 31 December 2015.
(c)[4]
Discuss two methods of improving the performance of the gift shop.
(d)[3]
Calculate how much the chairman needed to contribute to the club in order to cover the deficit.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme.