Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 20 - No. 36)

If a club purchases equipment, where is this recorded?

Income and expenditure account only

Statement of Financial Position only

Both income and expenditure account and statement of financial position

Receipts and Payments Account and Statement of Financial Position

Equipment is recorded in the cash book, therefore the receipts and payments account, and also as an asset in the statement of financial position.