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

Preparation of financial statements — practice question

Look at Source A1 in the insert.
(a(i))[12]

Set out the fully correct income and expenditure account.

(a(ii))[7]

Set out the correct statement of financial position, making the surplus or deficit for the year clear.

(b)[3]

Advise the managing committee on whether they ought to adopt a rule that cancels the membership of anyone whose subscriptions are overdue by more than one month. Support your answer.

(c)[3]

Explain how life membership subscriptions are accounted for and state the accounting concept that is applied.

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