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

Preparation of financial statements — practice question

AB Cricket Club operates as a not-for-profit organisation.
(a)[2]

State two reasons why members of a not-for-profit organisation do not get a dividend.

(b)[11]

Prepare the income and expenditure account for the year ending 31 August 2016.

(c)[8]

Prepare the statement of financial position as at 31 August 2016.

(d)[4]

Explain why the club allocates the life membership fund to the income and expenditure accounts over 10 years.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Clubs are not chiefly set up to earn a profit

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