AQA A-Level Accounting: The double entry model (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 subject content 3.3, The double entry model, of the AQA A-level Accounting (7127) specification, for A-level exams from June 2019 onwards. All businesses are invented and all amounts are in pounds. Learn the content first with the study guide and the revision notes. Course pages: AQA A-level Accounting hub and the printable checklist.

Questions

1. State the book of prime entry for each of these items at Gorsedd Print.

(a) A credit note received from a supplier for faulty paper. (b) An invoice sent to a customer for a credit sale of printing. (c) A cheque counterfoil for payment of the water bill. (d) A credit note sent to a customer for goods returned. (e) An invoice for a guillotine bought on credit. [5]

2. The bank column of Tolbury Joinery’s cash book shows a debit balance of 4,200. The bank statement shows items not yet in the cash book: a standing order of 150 for rent, a direct debit of 85 for insurance, a credit transfer of 940 from Ludgrove Ltd and a cheque for 310 from Okeby Stores returned unpaid.

(a) Calculate the updated bank balance. [3] (b) Give the double entry for the dishonoured cheque. [2] (c) State the effect on Okeby Stores’ receivables ledger account. [1]

3. Nethercott Hardware sold goods to Ilkeston Ltd at list price 750 less 20% trade discount. Ilkeston paid promptly and took 5% cash discount. Nethercott paid a supplier’s 800 invoice with 780.

(a) Calculate the invoice amount and the cash received from Ilkeston. [2] (b) Show how Nethercott records the receipt in its three column cash book. [2] (c) Name and treat the discount on the supplier payment, and state the combined effect of both discounts on profit. [2]

4. Okeby Stores owes Tolbury Joinery 2,150 in the receivables ledger. Tolbury owes Okeby 1,380 in the payables ledger. The balances are set against each other. Show the entries and the balance remaining. [4]

5. Classify each item as revenue expenditure, capital expenditure, revenue income or capital income.

(a) Replacing a warehouse floor with a stronger one that allows heavier racking. (b) Mending a puncture on a delivery van. (c) Rent from a tenant using spare office space. (d) Cash from selling an old forklift truck. (e) The annual road tax on a van. [5]

6. Tolbury Joinery (year end 31 March) bought a lathe for 42,000 on 1 April 2022: residual value 6,000, life six years, straight line. Four full years of depreciation were charged and it was sold on 31 March 2026 for 15,000.

(a) Calculate the accumulated depreciation at disposal. [2] (b) Prepare the disposal account. [3] (c) State where the balancing figure is shown. [1]

7. Fenwick Moor Haulage bought a van for 25,000 on 1 April 2023. A full year’s depreciation is charged in the year of purchase.

(a) Using 30% reducing balance, calculate the charge and net book value at the end of each of the first three years. [3] (b) Using straight line with a residual value of 4,000 over five years, calculate the annual charge and net book value after three years. [2] (c) Show the van in the statement of financial position after year 3 under reducing balance. [1]

8. Gorsedd Print’s year ends on 31 December.

(a) The rates account shows 500 prepaid at the start, 3,000 paid in the year and 750 prepaid at the end. Calculate the charge to the income statement and state the treatment on the statement of financial position. [3] (b) Commission receivable: 200 was due at the start, 1,800 was received and 260 is due at the end. Calculate the income for the year. [2] (c) State the classification of the closing commission due. [1]

9. Cobbold Traders (year end 31 December 2025) has receivables of 48,000 before writing off 2,000 owed by Ludgrove Ltd. The provision for doubtful debts is 5% of remaining receivables; the opening provision is 1,500. A debt of 300 written off earlier is paid in full.

(a) Show the write-off entries in the receivables ledger and general ledger. [2] (b) Calculate the provision required and the income statement charge for it. [2] (c) Show the entries for the recovery. [2] (d) Calculate the net cost to profit of all three items. [1]

10. Wetherley Pet Supplies (year ended 31 March 2026) has this trial balance.

	Debit	Credit
Inventory at 1 April 2025	8,400
Purchases and purchases returns	61,500	1,900
Sales and sales returns	1,300	104,800
Wages	14,200
Rent and rates	6,000
Insurance	2,760
Electricity	3,150
Equipment at cost; accumulated depreciation	20,000	6,000
Receivables; payables	9,600	6,300
Provision for doubtful debts		300
Bank	4,150
Drawings; capital	11,000	22,760

Adjustments: closing inventory 9,700; electricity owing 450; insurance prepaid 690; depreciation at 20% reducing balance on the net book value of the equipment; provision for doubtful debts at 5% of receivables.

(a) Prepare the income statement. [7] (b) Prepare the statement of financial position, with subheadings. [5]

11. Vexley Studios, a design business, has fees 74,500, commission receivable 3,200, wages 38,000, rent 9,600 and software 2,880. Adjustments: fees include 1,500 received in advance; commission due of 400 is unrecorded; wages owing 1,200; computer equipment costing 12,500 is depreciated straight line over five years, no residual value. Prepare the income statement and state how the two income adjustments appear on the statement of financial position. [7]

Answers

1. (a) Purchases returns journal. [1] (b) Sales journal. [1] (c) Three column cash book. [1] (d) Sales returns journal. [1] (e) General journal, because the guillotine is not goods for resale. [1] [5] Examiner insight: Name the exact book. An asset is not goods for resale, so the purchases journal is unlikely to earn credit for part (e).

2. (a) 4,200 - 150 - 85 [1] + 940 [1] - 310 = 4,595 debit [1] [3] (b) Debit Okeby Stores’ receivables ledger account 310 [1]; credit bank 310 [1] [2] (c) The balance owed by Okeby increases by 310 because the debt is owed again. [1] [1] Examiner insight: The direction of a dishonoured cheque is a common slip, so name the account debited and the account credited.

3. (a) Invoice 750 x 80% = 600 [1]; cash 600 x 95% = 570 [1] [2] (b) Debit bank 570 and debit discount allowed 30 [1]; credit Ilkeston Ltd’s account 600 [1] [2] (c) Discount received 20, credited as income [1]. Discount allowed 30 is an expense, so profit falls by 10 overall (30 - 20) [1] [2] Examiner insight: Separate the trade discount from the cash discount. The trade discount never reaches the ledger.

4. Debit Okeby in the payables ledger 1,380 [1]; credit Okeby in the receivables ledger 1,380 [1]; narrated in the general journal [1]; Okeby still owes Tolbury 2,150 - 1,380 = 770 [1] [4] Examiner insight: Show both ledgers; an answer touching one account is incomplete.

5. (a) Capital expenditure. [1] (b) Revenue expenditure. [1] (c) Revenue income. [1] (d) Capital income. [1] (e) Revenue expenditure. [1] [5] Examiner insight: A short reason, such as “improves the asset”, shows the test you are applying.

6. (a) Annual charge (42,000 - 6,000) / 6 = 6,000 [1]; four years = 24,000 [1] [2] (b)

Disposal of lathe
Dr                        Cr
Lathe at cost   42,000    Accumulated depreciation  24,000
                          Bank                      15,000
                          Loss on disposal           3,000
                42,000                              42,000

Cost on the debit side [1]; accumulated depreciation and proceeds on the credit side [1]; loss 3,000 (net book value 18,000 - 15,000) [1] [3] (c) In the income statement as an expense. [1] [1] Examiner insight: Show net book value as a check line to catch slips.

7. (a) Year 1: 7,500, NBV 17,500 [1]; year 2: 5,250, NBV 12,250 [1]; year 3: 3,675, NBV 8,575 [1] [3] (b) Charge (25,000 - 4,000) / 5 = 4,200 [1]; NBV after three years 25,000 - 12,600 = 12,400 [1] [2] (c) Van at cost 25,000, less accumulated depreciation 16,425, net book value 8,575, under non-current assets. [1] [1] Examiner insight: Apply the percentage to net book value each year; using original cost is the likeliest slip.

8. (a) Charge 500 + 3,000 - 750 = 2,750 [1] in the income statement [1]; the 750 is a current asset (prepayment) [1] [3] (b) 1,800 + 260 - 200 = 1,860 [1] receivable credited to the income statement [1] [2] (c) Current asset (income due). [1] [1] Examiner insight: Start from the cash figure and adjust it; show one line per adjustment.

9. (a) Debit irrecoverable debts 2,000; credit Ludgrove Ltd’s receivables ledger account 2,000. [1]. The receivables ledger account is then closed and the expense is in the general ledger. [1] [2] (b) Receivables 46,000; provision 5% = 2,300 [1]; increase 2,300 - 1,500 = 800 charged [1] [2] (c) Reinstate: debit the customer 300, credit irrecoverable debts recovered 300 [1]; debit bank 300, credit the customer 300 [1] [2] (d) 2,000 + 800 - 300 = 2,500 reduction in profit [1] [1] Examiner insight: Only the change in provision is an expense, not the full 2,300.

10. (a) Wetherley Pet Supplies, income statement for the year ended 31 March 2026

Sales 104,800 - returns 1,300                 103,500   [1]
Opening inventory                8,400
Purchases 61,500 - returns 1,900 59,600
                                68,000
Less closing inventory           9,700
Cost of sales                                  58,300   [2]
Gross profit                                   45,200   [1]
Wages                  14,200
Rent and rates          6,000
Insurance 2,760 - 690   2,070
Electricity 3,150 + 450 3,600                          [1]
Depreciation 20% x 14,000 2,800
Increase in provision   180                            [1]
Total expenses                                 28,850
Profit for the year                            16,350   [1]

[7] (b) Statement of financial position at 31 March 2026

Equipment 20,000 - 8,800                       11,200   [1]
Inventory                9,700
Receivables 9,600 - 480  9,120
Prepayment                 690
Bank                     4,150
Current assets          23,660                          [1]
Payables 6,300 + accrual 450 = current liabilities 6,750 [1]
Net current assets                             16,910
Net assets                                     28,110
Capital 22,760 + profit 16,350 - drawings 11,000 = 28,110 [1]

Net assets and capital agree. [1] [5] Examiner insight: Use subheadings and subtotals so the capital check is visible. Deduct 480 from receivables; only 180 is in the income statement.

11. Fees 74,500 - 1,500 = 73,000 [1]; commission 3,200 + 400 = 3,600 [1]; wages 38,000 + 1,200 = 39,200 [1]; depreciation 12,500 / 5 = 2,500 [1]; expenses 39,200 + 9,600 + 2,880 + 2,500 = 54,180 [1]; profit 76,600 - 54,180 = 22,420 [1]; income received in advance is a current liability and commission due is a current asset [1] [7] Examiner insight: A service business has no cost of sales, so start with income and label each adjustment.

Where marks are usually lost

• Naming a ledger account instead of the book of prime entry.
• Entering trade discount in the books.
• Swapping discount allowed and discount received.
• Charging the full provision, not the change.
• Using cost, not net book value, for reducing balance.
• Treating a prepayment as a liability.
• Leaving out headings, totals or the net assets check.

Frequently asked questions

Are these AQA 7127 double entry questions from past papers? No. They are original practice questions with worked answers on section 3.3 of AQA A-Level Accounting 7127, written for revision. Use them alongside the official past papers.

What topics do these double entry practice questions cover? They cover books of prime entry, bank statement items, discounts, contra entries, capital and revenue classification, depreciation and disposal, accruals and prepayments, irrecoverable debts and provisions, and financial statements for trading and service businesses.

What are the most common mistakes in double entry questions? Common errors include naming a ledger account instead of the book of prime entry, entering trade discount in the books, swapping discount allowed and discount received, and treating a prepayment as a liability.

How should financial statements be set out to earn full marks? Use the correct headings and subtotals so that net assets and capital can be compared. Leaving out headings, totals or the net assets check is a common reason marks are lost.

Next steps

• Re-read the revision notes and study guide.
• Go to the AQA A-level Accounting hub and tick off the checklist.
• Take the free diagnostics.
• Finally, book a free trial class.

Official syllabus

Based on the AQA A-level Accounting (7127) specification, subject content 3.3 The double entry model, for A-level exams June 2019 onwards, published by AQA.