IGCSE Accounting (9–1) 0985 · Topic 4

Accounting procedures: past paper questions

161 real questionsasked in 7 of the last 10 exam series2021–2026usually: Calculate, Justify, State, Show, Explain

Real questions on accounting procedures

The newest 20 of 33 written questions, plus 128 multiple-choice. Open one to see it on the real paper.

0985/21 · May/June 2026 · Q3a[4]
Prepare the rent expense account for the year ended 31 March 2026. Balance the account and bring down the balance at 1 April 2026. Yasmin and Zafran Rent expense account details $ date details Yasmin and Zafran are considering obtaining a long-term loan to buy the storeroom which they are now renting. REQUIRED
See it on the paper →
0985/21 · May/June 2026 · Q3b[5]
Advise the partners whether or not they should take out a long-term loan in order to buy the storeroom. Justify your answer by providing points both for and against doing this. The partnership agreement provides for: ¢ interest on partners’ loans of 7.5% per annum * — interest on drawings of 5% per annum * — interest o...
See it on the paper →
0985/21 · May/June 2026 · Q3c[7]
Prepare Yasmin’s current account for the year ended 31 March 2026. Balance the account and bring down the balance at 1 April 2026. Yasmin Current account date details $ date details $ The credit balances on Zafran’s accounts at 31 March 2026 were: $ capital account 35000 current account 5600 REQUIRED
See it on the paper →
0985/21 · May/June 2026 · Q4a[5]
Prepare the journal entry required to correct the depreciation charge. A narrative is required. Sally Journal date details $ $ Workings: Sally has now discovered the following further errors in her accounting records. 1 2 3 4 Rent expense paid of $620 had been debited to the rental income account. The sales journal and...
See it on the paper →
0985/22 · May/June 2026 · Q4a(i)[1]
one reason why the company used the straight-line method for charging depreciation on shop fixtures and fittings.
See it on the paper →
0985/22 · October/November 2025 · Q3a[4]
Calculate the depreciation charge for each year of the recovery vehicle’s working life, assuming Ahmed replaces the recovery vehicle on 31 August 2025. Show your workings. $
See it on the paper →
0985/22 · October/November 2025 · Q3b[2]
State one advantage and one disadvantage of the reducing balance method of depreciation. Advantage On 1 February 2025, a local dealer offered to buy the recovery vehicle from Ahmed for $35 000 cash. REQUIRED Disadvantage
See it on the paper →
0985/22 · October/November 2025 · Q3c[3]
Show your workings, and state whether it would have been a ‘profit’ or ‘loss’. (c) Calculate the profit or loss on disposal if Ahmed had sold his recovery vehicle to the local dealer on 1 February 2025.
See it on the paper →
0985/22 · October/November 2025 · Q3d(i)[2]
Prepare Ahmed’s motor vehicles account for the year ended 30 April 2025 if Ahmed had sold his recovery vehicle to the local dealer on 1 February 2025. Ahmed Motor vehicles account Date Details $ Date Details $
See it on the paper →
0985/22 · October/November 2025 · Q3d(ii)[4]
Prepare Ahmed’s disposal of motor vehicles account for the year ended 30 April 2025 if Ahmed had sold his recovery vehicle to the local dealer on 1 February 2025. Ahmed Disposal of motor vehicles account Date Details $ Date Details $ Ahmed sold his recovery vehicle. Since the sale, he has been hiring a recovery vehicle...
See it on the paper →
0985/22 · October/November 2025 · Q4b[3]
Balance the account and bring down the balance at 1 April 2025. AY Limited Provision for doubtful debts account Date Details $ Date Details $ (b) Write up the provision for doubtful debts account in AY Limited’s ledger for the year ended 31 March 2025.
See it on the paper →
0985/22 · October/November 2025 · Q4c(i)[1]
Explain what is meant by ‘a provision for doubtful debts’. (c) (i)
See it on the paper →
0985/21 · May/June 2025 · Q2a[3]
Calculate the accumulated depreciation on the delivery vehicle which Mo sold on 31 March 2024.
See it on the paper →
0985/21 · May/June 2025 · Q2b[4]
Prepare the disposal account for the sale of the delivery vehicle on 31 March 2024. Mo Disposal of vehicles account Date Details $ Date Details $ Mo purchased a new delivery vehicle on 1 April 2024. The purchase price is made up as follows: Cost of vehicle Petrol Insurance (6 months) Number (licence) plates $ 12 500 60...
See it on the paper →
0985/21 · May/June 2025 · Q2c[2]
Calculate the amount which Mo will record in his delivery vehicle account for this transaction on 1 April 2024. Mo is considering opening a shop to sell his farm produce. He hopes that customers will come to his farm and buy from the shop so that he will not need to deliver to them. He will use an existing farm buildin...
See it on the paper →
0985/21 · May/June 2025 · Q5b[4]
Calculate the valuation of Grace’s inventory of handbags at 31 March 2025.
See it on the paper →
0985/22 · May/June 2025 · Q3a[4]
Prepare the provision for depreciation of motor vehicles account for the year ended 31 March 2025. Balance the account and bring down the balance at 1 April 2025. Jasmine Provision for depreciation of motor vehicles account Date Details $ Date Details $
See it on the paper →
0985/22 · May/June 2025 · Q3b[4]
Prepare the provision for doubtful debts account for the year ended 31 March 2025. Balance the account and bring down the balance at 1 April 2025. Jasmine Provision for doubtful debts account Date Details $ Date Details $
See it on the paper →
0985/22 · May/June 2025 · Q3c[6]
Prepare the rent and rates account for the year ended 31 March 2025. Balance the account and bring down the balances at 1 April 2025. Jasmine Rent and rates account Date Details $ Date Details $ At 31 March 2025, Jasmine had a bank overdraft of $2620. REQUIRED
See it on the paper →
0985/22 · May/June 2025 · Q3e(ii)[1]
one way Jasmine may reduce the possibility of irrecoverable debts. (ii)
See it on the paper →

What examiners said

Ways to reduce the possibility of irrecoverable debts is an important strategy that all businesses will keep under constant review. There are many well established methods of credit control and answers were generally of a high level and good candidates could identify at least two of the ten available. Weak answers would be too vague, for example ‘increase cash’ instead of ‘sell more on a cash basi...
— Examiner report, October/November 2022, 0985/22 Q4(c) (Cambridge)

Two factors to be considered when setting a provision for doubtful debts was a challenging question. Candidates may well be used to calculating the provision as a percentage from textbook exercises, but they appeared to lack an appreciation of how this level may be arrived at in a commercial environment. Specific techniques commonly employed such as reviewing how long debts have been outstanding a...
— Examiner report, October/November 2022, 0985/22 Q4(d) (Cambridge)

Candidates were required to advice a trader whether to purchase a large quantity of inventory at a reduced price. At least one advantage and one disadvantage of the proposal should have been provided together with a clear recommendation. An increase in the amount of inventory does not necessarily lead to an increase in sales. The sales may increase because of the additional advertising and/or the...
— Examiner report, May/June 2022, 0985/21 Q4(b) (Cambridge)

Practise this topic

Answer these questions online and get each one marked against the official mark scheme, with what you missed and how to fix it.

Download 0985 papers

In the syllabus

1 0452.4.1.01 — distinguish between and account for capital expenditure and revenue expenditure

distinguish between and account for capital expenditure and revenue expenditure
distinguish between and account for capital receipts and revenue receipts
calculate and comment on the effect on profit of incorrect treatment
calculate and comment on the effect on asset valuations of incorrect treatment.

2 0452.4.1.02 — distinguish between and account for capital receipts and revenue receipts

distinguish between and account for capital receipts and revenue receipts

3 0452.4.1.03 — calculate and comment on the effect on profit of incorrect treatment

calculate and comment on the effect on profit of incorrect treatment

4 0452.4.1.04 — calculate and comment on the effect on asset valuations of incorrect treatment.

calculate and comment on the effect on asset valuations of incorrect treatment.

5 0452.4.2.01 — define depreciation

define depreciation
explain the reasons for accounting for depreciation
name and describe the straight-line, reducing balance and revaluation methods of depreciation
prepare ledger accounts and journal entries for the provision of depreciation
prepare ledger accounts and journal entries to record the sale of non-current assets, including the use

6 0452.4.2.02 — explain the reasons for accounting for depreciation

explain the reasons for accounting for depreciation

7 0452.4.2.03 — name and describe the straight-line, reducing balance and revaluation methods of depreciation

name and describe the straight-line, reducing balance and revaluation methods of depreciation

8 0452.4.2.04 — prepare ledger accounts and journal entries for the provision of depreciation

prepare ledger accounts and journal entries for the provision of depreciation

9 0452.4.2.05 — prepare ledger accounts and journal entries to record the sale of non-current assets, including the use

prepare ledger accounts and journal entries to record the sale of non-current assets, including the use

10 0452.4.3.01 — recognise the importance of matching costs and revenues

recognise the importance of matching costs and revenues
prepare ledger accounts and journal entries to record accrued and prepaid expenses
prepare ledger accounts and journal entries to record accrued and prepaid incomes.

11 0452.4.3.02 — prepare ledger accounts and journal entries to record accrued and prepaid expenses

prepare ledger accounts and journal entries to record accrued and prepaid expenses

12 0452.4.3.03 — prepare ledger accounts and journal entries to record accrued and prepaid incomes.

prepare ledger accounts and journal entries to record accrued and prepaid incomes.

13 0452.4.4.01 — understand the meaning of irrecoverable debts and recovery of debts written off

understand the meaning of irrecoverable debts and recovery of debts written off
prepare ledger accounts and journal entries to record irrecoverable debts
prepare ledger accounts and journal entries to record recovery of debts written off
explain the reasons for maintaining a provision for doubtful debts
prepare ledger accounts and journal entries to record the creation of, and adjustments to, a provision for

14 0452.4.4.02 — prepare ledger accounts and journal entries to record irrecoverable debts

prepare ledger accounts and journal entries to record irrecoverable debts

15 0452.4.4.03 — prepare ledger accounts and journal entries to record recovery of debts written off

prepare ledger accounts and journal entries to record recovery of debts written off

16 0452.4.4.04 — explain the reasons for maintaining a provision for doubtful debts

explain the reasons for maintaining a provision for doubtful debts

17 0452.4.4.05 — prepare ledger accounts and journal entries to record the creation of, and adjustments to, a provision for

prepare ledger accounts and journal entries to record the creation of, and adjustments to, a provision for

18 0452.4.5.01 — understand the basis of the valuation of inventory at the lower of cost and net realisable value

understand the basis of the valuation of inventory at the lower of cost and net realisable value
prepare simple inventory valuation statements
recognise the importance of valuation of inventory and the effect of an incorrect valuation of inventory on

19 0452.4.5.02 — prepare simple inventory valuation statements

prepare simple inventory valuation statements

20 0452.4.5.03 — recognise the importance of valuation of inventory and the effect of an incorrect valuation of inventory on

recognise the importance of valuation of inventory and the effect of an incorrect valuation of inventory on

Past papers, syllabus and examiner reports © UCLES (Cambridge University Press & Assessment). Questions are matched to topics from the official syllabus. AssessPro is independent and not endorsed by Cambridge.