3.1. Preparation of financial statements
A subsection of Accounting, 9706, through 3. Financial accounting (A Level)
Listing 10 of 678 questions
The treasurer of the Ocean Fishing Club has prepared the following receipts and payments account for the year ended 31 March 2014. Receipts Payments $ $ Balance at 1 April 2013 6 570 Payments to trade payables 2 974 Subscriptions received 7 400 Shop wages 3 670 Donations 1 450 Administration expenses 2 790 Receipts from annual family day 2 300 New equipment 5 600 Shop takings 7 690 Repairs to equipment 2 500 Transfer to deposit account 7 000 _____ Balance c/d 25 410 25 410 1 April 2013 31 March 2014 $ $ Shop inventory Trade payables for shop Deposit account 6 000 13 000 Equipment at cost 9 800 ? Provision for depreciation 2 940 ? Repairs to equipment owing Shop wages due Shop fittings at net book value Additional information The donations are to be capitalised. There are 350 members who pay an annual subscription of $20. At 1 April 2013, 30 members had paid in advance for the coming year but 24 members had not yet paid for the year ended 31 March 2013. At 31 March 2014, 10 members had yet to pay and some members had paid in advance but the treasurer has not yet calculated how many. Interest of 5% per annum is credited to the deposit account by the bank on 31 March each year. This has not yet been entered in the books. The transfer of $7000 to the deposit account was made on the 31 March 2014. Equipment is depreciated at 15% per annum using the reducing balance method. A full year’s depreciation is charged in the year of purchase. REQUIRED Prepare the shop trading account for the year ended 31 March 2014. Prepare the income and expenditure account for the year ended 31 March 2014. Prepare the statement of financial position at 31 March 2014. Additional information The club wishes to buy a new boat for use by members. It will cost $12 500. REQUIRED Suggest three ways the club could raise the finance to purchase the new boat. State one advantage and one disadvantage of each method you have suggested. 1 Advantage Disadvantage
9706_s14_qp_23
THEORY
2014
Paper 2, Variant 3
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678