IGCSE Accounting (9–1) 0985 · Topic 1

The fundamentals of accounting: past paper questions

56 real questionsasked in 5 of the last 10 exam series2023–2026usually: Justify, State, Calculate

Real questions on the fundamentals of accounting

The newest 8 of 8 written questions, plus 48 multiple-choice. Open one to see it on the real paper.

0985/22 · May/June 2026 · Q1c[5]
Advise Saleh whether or not he should increase the rate of discount allowed and charge an interest on overdue accounts. Justify your answer by providing points for and points against making these changes. Turn over
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0985/21 · May/June 2025 · Q2d[5]
Advise Mo whether or not he should open the shop. Justify your answer by providing advantages and disadvantages of opening the shop. Mo owns his farmland and rents out one of his fields to a neighbouring farmer, Barry, for $80 a month. Barry pays Mo by bank transfer. On 1 January 2024, Barry owed Mo two months’ rent. D...
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0985/21 · May/June 2025 · Q4c[1]
State the meaning of the term ‘equity’.
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0985/22 · May/June 2025 · Q5c[3]
Calculate Rexford’s trade receivables at 31 December 2024. Rexford is considering employing a part-time bookkeeper. The bookkeeper would be paid $5000 per annum. REQUIRED
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0985/22 · May/June 2025 · Q5d[5]
Advise Rexford whether or not he should employ a bookkeeper. Justify your answer by providing two points for and two points against employing a part-time bookkeeper.
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0985/21 · May/June 2024 · Q5c[5]
Advise Stella whether or not to start selling on credit terms. Justify your answer by providing points for and against starting selling on credit.
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0985/22 · October/November 2023 · Q4d[1]
State why financial statements may still be reliable even if errors are present.
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0985/21 · May/June 2023 · Q3c[7]
Calculate Eshe’s capital at 31 March 2023 after the errors have been corrected.
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What examiners said

Very few correct answers were seen and the importance of key words such as ‘material’ and ‘significant’ were not offered. Many attempted to describe compensating errors or errors not affecting the trial balance.
— Examiner report, October/November 2023, 0985/22 Q4(d) (Cambridge)

Using the data provided about opening capital, draft profit for the year and the errors discovered, candidates were required to calculate the closing capital. Stronger responses earned good marks, but the weaker responses included evidence to suggest that some candidates found this question challenging. Once again, it was important to show calculations. Common errors included: • omission of eithe...
— Examiner report, May/June 2023, 0985/21 Q3(c) (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.

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In the syllabus

1 0452.1.1.01 — understand and explain the difference between book-keeping and accounting

understand and explain the difference between book-keeping and accounting
state the purposes of measuring business profit and loss
explain the role of accounting in providing information for monitoring progress and decision-making.

2 0452.1.1.02 — state the purposes of measuring business profit and loss

state the purposes of measuring business profit and loss

3 0452.1.1.03 — explain the role of accounting in providing information for monitoring progress and decision-making.

explain the role of accounting in providing information for monitoring progress and decision-making.

4 0452.1.2.01 — explain the meaning of assets, liabilities and owner’s equity

explain the meaning of assets, liabilities and owner’s equity
explain and apply the accounting equation.

5 0452.1.2.02 — explain and apply the accounting equation.

explain and apply the accounting equation.

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