AQA A-Level Accounting: Accounting for organisations with incomplete records (7127) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover section 3.14, Accounting for organisations with incomplete records, of the AQA A-level Accounting (7127) specification (version 1.1, October 2026, A-level exams June 2019 onwards). The qualification is not tiered and section 3.14 is assessed on Paper 1. Use a calculator throughout. All businesses and figures are invented.

Learn the content with the study guide and the revision notes. See also the AQA A-level Accounting hub and the 7127 checklist.

Questions

1. Explain what is meant by a statement of affairs. [2]

2. Selby Trade Supplies keeps no sales ledger. Trade receivables were £6,300 at the start of the year and £7,050 at the end; £61,200 was received from credit customers; irrecoverable debts of £450 were written off; £600 was set off against a supplier’s account (contra); and a customer’s cheque for £380 was dishonoured. Prepare the total trade receivables account to find credit sales. [4]

3. Thorne Café’s till rolls show cash takings of £38,600. Cash in hand was £240 at the start of the year and £185 at the end. From the takings the owner banked £24,750, paid wages of £8,400 and bought supplies for £1,920. The rest was taken as drawings. Prepare the cash account to find drawings. [4]

4. Ailsa Penrose runs a window cleaning business and keeps no books.

	1 July 2025 £	30 June 2026 £
Equipment	4,800	4,200
Vans	7,300	11,900
Trade receivables	1,900	2,350
Bank	2,650	3,180
Trade payables	420	560
Fuel accrued	–	140
Bank loan	3,000	2,000

She took drawings of £350 a week for 52 weeks. On 1 January 2026 she brought her own van, valued at £6,000, into the business. Calculate the profit for the year ended 30 June 2026. [5]

5. Rowan Books sells all goods at a gross profit margin of 30%. Thieves broke in on 18 May 2026. Since 1 January: opening inventory £18,400, purchases £52,700 and sales £71,000. The owner had taken books costing £600 for her own use, not yet recorded. Inventory left after the theft cost £4,560. Calculate the cost of the inventory stolen. [5]

6. Tarn Couriers depreciates vehicles at 25% a year by the reducing balance method on vehicles held at the year end, with a full year’s charge in the year of purchase and none in the year of disposal. At 1 April 2025 vehicles had a carrying amount of £26,000. During the year a vehicle with a carrying amount of £4,200 was sold for £5,000, and a new vehicle was bought. At 31 March 2026, after depreciation, vehicles had a carrying amount of £30,600.

(a) Calculate the profit or loss on disposal. [1] (b) Calculate the depreciation charge for the year. [2] (c) Calculate the cost of the new vehicle. [2]

7. Megan Callow owns Callow Plant Nursery. Her year ends 31 March 2026.

	1 April 2025 £	31 March 2026 £
Inventory	5,200	6,100
Trade receivables	2,600	3,300
Trade payables	3,900	4,450
Rates prepaid	300	360
Electricity accrued	250	310
Bank	3,450	not known

Equipment at 1 April 2025: cost £20,000, accumulated depreciation £6,000.

Bank summary for the year. Receipts: from credit customers £41,900; cash sales £47,300 (all cash sales are banked intact). Payments: trade payables £49,800; wages £14,200; rates £3,600; electricity £2,100; drawings £15,000; new equipment £6,000.

An irrecoverable debt of £150 was written off. Depreciation is 15% a year on the cost of equipment held at the year end.

(a) Calculate credit sales and credit purchases. [4] (b) Prepare the income statement for the year ended 31 March 2026. [8]

8. Use the information in Question 7.

(a) Calculate Megan’s capital at 1 April 2025. [3] (b) Calculate the bank balance at 31 March 2026. [2] (c) Prepare the statement of financial position at 31 March 2026. [5]

9. Joel Kirby, a plumber with several credit customers and a van loan, records his business only through his bank statements. His accountant suggests moving to a double entry system using accounting software. Evaluate whether Joel should change his system. [6]

10. Ullswater Tiles had revenue of £150,000 and adds a mark-up of 25% to cost. Its rate of inventory turnover was 8 times, closing inventory was £16,500 and profit in relation to revenue was 6%.

(a) Calculate the cost of sales and the gross profit. [2] (b) Calculate the opening inventory and the purchases. [3] (c) Calculate the total expenses. [2]

Answers

1. A list of a business’s assets and liabilities at a given date, used when no double entry records exist [1]; capital is the balancing figure (assets - liabilities), and comparing opening and closing statements is used to find profit [1]. [2] Examiner insight: “A balance sheet” alone is usually too vague; say capital is the balancing figure.

2.

              Total trade receivables account
Balance b/d             6,300   Bank                   61,200
Bank (dishonoured)        380   Irrecoverable debts       450
Credit sales (bal)     62,620   Contra (payables)         600
                                Balance c/d             7,050
                       69,300                          69,300

Dishonoured cheque on the debit side [1]; irrecoverable debts and contra on the credit side [1]; opening and closing balances on the correct sides [1]; credit sales £62,620 [1]. [4] Examiner insight: A dishonoured cheque restores the debt, so it is a debit; putting it on the credit side changes the balancing figure by £760.

3.

                       Cash account
Balance b/d               240   Bank                   24,750
Takings                38,600   Wages                   8,400
                                Purchases               1,920
                                Drawings (bal)          3,585
                                Balance c/d               185
                       38,840                          38,840

Debit side entries [1]; bank, wages and purchases credited [1]; closing balance carried down [1]; drawings £3,585 [1]. [4] Examiner insight: Show the full account; a bare figure leaves no method to credit if an entry is wrong.

4.

Opening assets  4,800 + 7,300 + 1,900 + 2,650    = 16,650
Opening capital 16,650 - (420 + 3,000)           = 13,230
Closing assets  4,200 + 11,900 + 2,350 + 3,180   = 21,630
Closing capital 21,630 - (560 + 140 + 2,000)     = 18,930
Increase in capital                                5,700
Add drawings 350 x 52                             18,200
Less capital introduced                           (6,000)
Profit for the year                               17,900

Opening capital [1]; closing capital [1]; drawings added [1]; capital introduced deducted [1]; profit £17,900 [1]. [5] Examiner insight: The fuel accrual is easy to miss in the closing liabilities; own-figure credit usually still applies to the later steps if the method is shown.

5. Cost of sales = 71,000 x 70% [1] = £49,700 [1]. Expected closing inventory = 18,400 + 52,700 - 600 - 49,700 [1] = £20,800 [1]. Inventory stolen = 20,800 - 4,560 = £16,240 [1]. [5] Examiner insight: Goods taken by the owner left the business before the theft, so they must be deducted; leaving them in overstates the loss by £600.

6. (a) 5,000 - 4,200 = £800 profit [1] (b) Carrying amount before depreciation = 30,600 / 0.75 = £40,800 [1]; depreciation = 40,800 - 30,600 = £10,200 [1] (c) New vehicle = 40,800 - (26,000 - 4,200) [1] = £19,000 [1] [5] Examiner insight: Working back from a carrying amount after reducing balance means dividing by 0.75, not multiplying by 1.25; the second gives £38,250 and loses the accuracy marks.

7. (a)

Credit sales     = 41,900 + 150 + 3,300 - 2,600  = 42,750
Credit purchases = 49,800 + 4,450 - 3,900        = 50,350

Method for credit sales including the irrecoverable debt [1]; £42,750 [1]; method for credit purchases [1]; £50,350 [1].

(b)

Callow Plant Nursery
Income statement for the year ended 31 March 2026
                                         £          £
Revenue (42,750 + 47,300)                       90,050
Less cost of sales
  Opening inventory                   5,200
  Purchases                          50,350
                                     55,550
  Less closing inventory             (6,100)    49,450
Gross profit                                    40,600
Less expenses
  Wages                              14,200
  Rates (300 + 3,600 - 360)           3,540
  Electricity (2,100 + 310 - 250)     2,160
  Irrecoverable debts                   150
  Depreciation (26,000 x 15%)         3,900     23,950
Profit for the year                             16,650

Revenue [1]; cost of sales [1]; gross profit [1]; rates [1]; electricity [1]; wages and irrecoverable debts [1]; depreciation [1]; profit £16,650 [1]. [12] Examiner insight: Depreciation is on the cost held at the year end (£26,000, including the new equipment); using £20,000 or the carrying amount loses that mark, though own-figure credit is usually given on the profit.

8. (a) Assets 14,000 + 5,200 + 2,600 + 3,450 + 300 = £25,550 [1]; liabilities 3,900 + 250 = £4,150 [1]; capital £21,400 [1] (b) 3,450 + 41,900 + 47,300 - (49,800 + 14,200 + 3,600 + 2,100 + 15,000 + 6,000) [1] = £1,950 [1] (c)

Callow Plant Nursery
Statement of financial position at 31 March 2026
                                      £          £
Non-current assets
  Equipment at cost                          26,000
  Less accumulated depreciation              (9,900)
                                             16,100
Current assets
  Inventory                       6,100
  Trade receivables               3,300
  Other receivables (rates)         360
  Bank                            1,950      11,710
Current liabilities
  Trade payables                  4,450
  Other payables (electricity)      310      (4,760)
Net assets                                   23,050

Capital at 1 April 2025                      21,400
Add profit for the year                      16,650
                                             38,050
Less drawings                               (15,000)
                                             23,050

Equipment [1]; current assets [1]; current liabilities [1]; net assets [1]; capital section £23,050 [1]. [10] Examiner insight: Never insert an unexplained difference to force a balance; check the bank balance and opening capital first.

9. Indicative answer:

• Single entry is cheap and quick for a one-person business [1].
• With credit customers but no receivables records, slow payers may go unnoticed [1].
• No trial balance, so errors go undetected, and the accountant must rebuild the records each year [1].
• Software gives full financial statements, which the van lender may want [1].
• But software costs money and Joel needs time and skill to use it [1].
• Judgement: credit trading and borrowing make the extra control worth the cost, so he should change [1]. [6]

Examiner insight: Evaluation marks need points applied to Joel (credit customers, the loan) and a supported conclusion; a generic list of advantages tends to stay in the lower marks.

10. (a) Cost of sales = 150,000 x 100/125 = £120,000 [1]; gross profit = £30,000 [1] (b) Average inventory = 120,000 / 8 = £15,000 [1]; opening inventory = 30,000 - 16,500 = £13,500 [1]; purchases = 120,000 + 16,500 - 13,500 = £123,000 [1] (c) Profit = 150,000 x 6% = £9,000 [1]; expenses = 30,000 - 9,000 = £21,000 [1] [7] Examiner insight: Average inventory is (opening + closing) / 2, so double it before subtracting the closing figure; taking £15,000 as opening inventory loses both later marks unless own-figure credit applies.

Where marks are usually lost

• Using a mark-up % on sales as though it were a margin, in theft and fire questions.
• Forgetting goods taken by the owner when working out expected closing inventory.
• Missing capital introduced in kind (a van or other asset brought in by the owner).
• Putting a dishonoured cheque or contra on the wrong side of the total receivables account.
• Charging the cash paid for rates or electricity without the opening and closing adjustments.
• Depreciating on the opening cost when the policy says cost held at the year end.
• Evaluation answers with no final judgement.

Next steps

• Revision notes
• Study guide
• AQA A-level Accounting hub
• 7127 checklist
• All free 10-minute diagnostics
• Book a free trial class

Official syllabus

AQA, A-level Accounting (7127) specification, version 1.1, October 2026, for A-level exams from June 2019 onwards: section 3.14, Accounting for organisations with incomplete records.