Edexcel IGCSE Accounting: Incomplete records (4AC1) – 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 4.3 Incomplete records of the Pearson Edexcel International GCSE in Accounting (4AC1) specification, Issue 1, October 2016. This content sits in Topic 4, which Paper 2 assesses. All businesses and amounts (in dollars) are invented. Learn the methods first from the study guide and the revision notes. Course links: Edexcel IGCSE Accounting hub, the printable checklist and the free 10-minute diagnostics.

Questions

1. Yewtree Kennels has equipment 6,200, inventory 480, trade receivables 1,150 and bank 3,870. It owes trade payables of 920 and a loan of 2,500. Calculate the equity of the business. [3]

2. Opening equity of a business was 14,600 and closing equity was 19,350. The owner took drawings of 8,400 and paid 2,000 of personal money into the business. Calculate the profit for the year. [4]

3. Opening equity of Nightingale Cycles was 9,000 and closing equity was 6,500. The owner took drawings of 4,200 and introduced no capital. Calculate the profit or loss for the year and explain why equity fell. [3]

4. Primrose Bakery has trade receivables of 3,840 at the start of the year and 4,270 at the end. Customers paid 36,900. Discount allowed was 410, irrecoverable debts written off were 260 and sales returns were 780. Prepare the trade receivables control account and calculate credit sales. [4]

5. Egerton Fabrics has trade payables of 2,960 at the start of the year and 3,310 at the end. It paid suppliers 27,450, received discount of 520 and returned goods worth 640. Cash purchases were 1,900. Inventory was 4,100 at the start and 3,700 at the end.

(a) Calculate credit purchases and total purchases. [3] (b) Calculate cost of sales. [2]

6. The till at Lockhart Kiosk held 90 at the start of the year and 140 at the end. During the year 14,600 was banked, and 1,350 for goods, 2,200 for wages and 1,800 for drawings were paid out of the till. Calculate the cash sales for the year. [3]

7. Oakeshott Garden Supplies had cost of sales of 42,000. It adds a mark-up of 30% to cost.

(a) Calculate revenue. [2] (b) Calculate the gross profit margin, to one decimal place. [2]

8. Explain why an income statement gives an owner more information than a profit figure found by comparing opening and closing equity. [3]

9. Zahra Brightling runs Brightling Print Shop. At 1 January 2025 she had machinery 12,000, inventory 2,800, trade receivables 2,100 and bank 1,900. Trade payables were 1,600. Her bank summary for the year to 31 December 2025 shows receipts from customers 41,500 and cash sales banked 9,300, and payments to suppliers 28,400, rent 3,900, wages 5,200 and drawings 7,800.

At 31 December 2025: inventory 3,100, trade receivables 2,600, trade payables 1,850. Rent of 300 was paid in advance and wages of 250 were owing. Irrecoverable debts of 150 were written off. Depreciation on machinery is 1,200.

(a) Prepare the income statement for the year ended 31 December 2025. [6] (b) Prepare the statement of financial position at 31 December 2025. [4]

10. Marguerite Wolstenholme owns Flintlock Hardware, which keeps no income statement. Her assets and liabilities were:

	1 July 2025	30 June 2026
Fittings	9,000	8,100
Inventory	5,200	5,800
Trade receivables	4,100	4,600
Bank	2,300	6,500
Cash	100	120
Trade payables	3,300	3,900

She took 8,000 from the bank as drawings and goods that cost 600 for her own use. Customers paid 55,800, discount allowed was 700 and sales returns were 1,100. Cash sales were 12,600. Suppliers were paid 36,500, discount received was 480 and goods returned to suppliers were 900.

(a) Calculate the profit for the year. [4] (b) Calculate revenue. [3] (c) Calculate purchases, taking account of the goods taken, and cost of sales. [3] (d) Calculate the total expenses for the year. [2]

Answers

1. Total assets = 6,200 + 480 + 1,150 + 3,870 = 11,700 [1]. Total liabilities = 920 + 2,500 = 3,420 [1]. Equity = 11,700 - 3,420 = 8,280 [1]. [3] Examiner insight: Naming the two totals before subtracting lets a marker see your method even if one addition slips.

2. Increase in equity = 19,350 - 14,600 = 4,750 [1]. Add drawings: 4,750 + 8,400 [1]. Subtract capital introduced: - 2,000 [1]. Profit = 11,150 [1]. [4] Examiner insight: Both adjustments run in opposite directions, so a wrong sign on either one changes the answer; write the formula first.

3. Change in equity = 6,500 - 9,000 = -2,500 [1]. Profit = -2,500 + 4,200 = 1,700 profit [1]. Equity fell because the drawings of 4,200 were greater than the profit of 1,700 [1]. [3] Examiner insight: A fall in equity does not mean a loss; an explanation should refer to drawings, not just repeat the figures.

4. Debit side: balance b/d 3,840 [1]. Credit side: bank 36,900, discount allowed 410, irrecoverable debts 260, sales returns 780 and balance c/d 4,270 [1]. Both sides total 42,620 [1]. Credit sales (balancing figure on the debit side) = 38,780 [1]. [4] Examiner insight: The side matters: credit sales placed on the credit side show a misunderstanding of the account even if the number is right.

5. (a) Credit purchases = 3,310 + 27,450 + 520 + 640 - 2,960 = 28,960 [2]. Total purchases = 28,960 + 1,900 = 30,860 [1]. [3] (b) Cost of sales = 4,100 + 30,860 - 3,700 [1] = 31,260 [1]. [2] Examiner insight: Cash purchases are easy to leave out; check that each part uses the figure from the part before.

6. Add the payments from the till: 1,350 + 2,200 + 1,800 = 5,350, plus banked 14,600 = 19,950 [1]. Add closing 140 and subtract opening 90 [1]. Cash sales = 20,000 [1]. [3] Examiner insight: Treat the till like a mini cash account: what went out, plus what is left, less what was there at the start.

7. (a) Gross profit = 42,000 x 30% = 12,600 [1]. Revenue = 42,000 + 12,600 = 54,600 [1]. [2] (b) Margin = 12,600 / 54,600 [1] = 23.1% [1]. [2] Examiner insight: Mark-up uses cost as its base and margin uses revenue; stating the base in your working shows you know which one you used.

8. The income statement shows revenue and cost of sales separately [1]. It shows each expense, so the owner can see which are rising [1]. It shows gross profit, which allows comparison with other years or businesses [1]. The equity method gives only a single profit figure. [3] Examiner insight: Aim for three distinct points; repeating “more detail” in different words is still one idea.

9. (a) Working: credit sales = 2,600 + 41,500 + 150 - 2,100 = 42,150; credit purchases = 1,850 + 28,400 - 1,600 = 28,650.

Income statement, year ended 31 December 2025
Revenue (42,150 + 9,300)		51,450 [1]
Opening inventory	2,800
Purchases	28,650 [1]
	31,450
Closing inventory	3,100
Cost of sales		28,350 [1]
Gross profit		23,100 [1]
Rent (3,900 - 300), wages (5,200 + 250)	3,600, 5,450 [1]
Depreciation, irrecoverable debts	1,200, 150
Total expenses		10,400
Profit for the year		12,700 [1]

[6]

(b) Closing bank = 1,900 + 50,800 - 45,300 = 7,400 [1].

Statement of financial position at 31 December 2025
Machinery (12,000 - 1,200)	10,800
Inventory 3,100, trade receivables 2,600, other receivables 300, bank 7,400	13,400 [1]
Trade payables 1,850, other payables 250	(2,100)
Net assets	22,100 [1]
Equity: 17,200 + 12,700 - 7,800	22,100 [1]

[4] Examiner insight: Show how the closing bank balance was found, and check that equity matches net assets before you stop.

10. (a) Opening equity = 20,700 - 3,300 = 17,400 [1]. Closing equity = 25,120 - 3,900 = 21,220 [1]. Drawings = 8,000 + 600 = 8,600 [1]. Profit = 21,220 - 17,400 + 8,600 = 12,420 [1]. [4] (b) Credit sales = 4,600 + 55,800 + 700 + 1,100 - 4,100 = 58,100 [2]. Revenue = 58,100 + 12,600 = 70,700 [1]. [3] (c) Credit purchases = 3,900 + 36,500 + 480 + 900 - 3,300 = 38,480; less goods taken 600 = 37,880 [1]. Cost of sales = 5,200 + 37,880 - 5,800 [1] = 37,280 [1]. [3] (d) Gross profit = 70,700 - 37,280 = 33,420 [1]. Expenses = 33,420 - 12,420 = 21,000 [1]. [2] Examiner insight: Goods taken by the owner appear in drawings in (a) and reduce purchases in (c); make both uses visible in your working so nothing has to be guessed.

Where marks are usually lost

• Forgetting to add back drawings, or to take off capital introduced.
• Concluding that a fall in equity means a loss without allowing for drawings.
• Putting credit sales or credit purchases on the wrong side of a control account.
• Leaving cash purchases or cash sales out of the totals.
• Confusing margin (based on revenue) with mark-up (based on cost).
• Charging cash paid for rent or wages instead of the amount for the year.
• Forgetting that other receivables go on the assets side and other payables on the liabilities side.
• Not checking that equity equals net assets.

Next steps

• Recap the methods in the revision notes.
• Re-read the worked examples in the study guide.
• Course hub: Edexcel IGCSE Accounting and the printable checklist.
• Take the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

Does a fall in equity always mean a loss? No. Equity can fall because the owner took large drawings even when the business made a profit, so add back drawings and deduct capital introduced before concluding there was a loss.

How do you find total purchases from incomplete records? Find credit purchases as the balancing figure in the trade payables control account, then add cash purchases from the bank or till summary. Using credit purchases alone leaves purchases understated.

Which expense figure goes in the income statement when records are incomplete? Use the amount for the year, not the cash paid: adjust the cash paid for amounts owing and amounts paid in advance. Charging cash paid for rent or wages without these adjustments is a common error in Edexcel IGCSE Accounting (4AC1).

How can you check incomplete records statements? Check that closing equity equals net assets in the statement of financial position. If they do not agree, a figure is missing or wrong.

Official syllabus

Pearson Edexcel International GCSE in Accounting (4AC1), Specification, Issue 1, October 2016, published by Pearson Education Limited. Topic 4: The preparation of financial statements, section 3 Incomplete records, points a) to c).