Accounting procedures — IGCSE Accounting (0985) questions by topic
Accounting procedures questions ask you to calculate depreciation using the reducing balance method, identify the effect of treating expenses as capital expenditure on profit and expense totals, state how a business should value its inventory, and work through adjustments such as renting out unused office space. Calculate, state, identify, construct and find are the top command words, each testing whether an accounting rule is applied correctly to the figures given.
This page draws on 16 real questions worth between 1 and 20 marks, from papers set in 2024 and 2025. Submit your depreciation and valuation workings for instant marking, since these questions often build one figure from another and an early misapplied rule, such as valuing inventory at the wrong of cost or net realisable value, will carry through the rest of the answer.
May–June 2025, Paper 11
What is the effect of incorrectly treating expenses as capital expenditure? income statement --- --- --- profit for the year expenses total A overstated overstated B overstated…
Answer this question and get it marked →Atif depreciates his motor vehicles at a rate of 20% per annum, using the reducing balance method. On 1 May 2024, Atif owned motor vehicles which had cost $35 000. The accumulated…
Answer this question and get it marked →T Limited rents out part of its premises. At the start of the year, the tenant was $600 in arrears. During the year, T Limited received $8650 in rent from the tenant. T Limited's…
Answer this question and get it marked →A provision for doubtful debts of 5% of trade receivables is maintained. At 1 January 2024, the provision for doubtful debts account had a credit balance of $240. At 31 December…
Answer this question and get it marked →How should a business value its inventory? A at the higher of cost and net realisable value B at the lower of cost and net realisable value C at the higher of selling price and…
Answer this question and get it marked →A business provided the following information about two expenses. 1 January 2024 $ amount paid during year ended 31 December 2024 $ 31 December 2024 $ --- --- --- --- electricity…
Answer this question and get it marked →May–June 2025, Paper 12
When Mark started a car repair business, he purchased premises and equipment. Two years later, he spent $5000 on building an extension, $600 on new equipment and $750 on…
Answer this question and get it marked →On 1 January 2023, equipment was purchased for $50 000. The equipment is expected to have a useful life of five years and a residual value of $10 000. The straight-line method of…
Answer this question and get it marked →Anjum rents part of her premises to Ajay for $6120 per annum. At the beginning of the year, Ajay had paid two months' rent in advance. At the end of the year, Ajay had paid three…
Answer this question and get it marked →Why does a trader write off money owed by a credit customer as an irrecoverable debt? A because the credit customer has not paid their account at the end of the trading period B…
Answer this question and get it marked →Shilpa's financial year ends on 30 April. On 31 March 2025, she wrote off a debt owed by Tahir as irrecoverable. Which entry did Shilpa make on 31 March 2025? debit credit --- ---…
Answer this question and get it marked →Tony has prepared an inventory calculation statement at the end of the financial period. cost ($) net realisable value ($) --- --- --- cricket bats 600 750 cricket gloves 400 320…
Answer this question and get it marked →Draft financial statements prepared at the end of the first year of trading show: • draft profit for the year of $24 000 • trade receivables of $6300. An amount of $200 is to be…
Answer this question and get it marked →May–June 2025, Paper 21
Mo is a farmer. He prepares his financial statements to 31 December each year. He delivers his farm produce to his customers in his delivery vehicle. Mo charges depreciation on…
Answer this question and get it marked →May–June 2025, Paper 22
Jasmine owns a consulting business. At 1 April 2024, Jasmine's ledger accounts included the following balances. $ --- --- Motor vehicles 16 000 Provision for depreciation of motor…
Answer this question and get it marked →May–June 2024, Paper 21
Ahmed owns a trading business. He prepares his financial statements to 31 December each year. Ahmed had some unused office space and he decided to use some of this to store…
Answer this question and get it marked →