IGCSE Accounting: Incomplete records (Cambridge 0452) – Practice Questions

Syllabus edition note. This resource follows the Cambridge IGCSE Accounting 0452 syllabus (and Cambridge O Level Accounting 7707, which has the same subject content for the same series) for exams in 2027, 2028 and 2029 (version 1), first examined in the March 2027 series in India and the June 2027 series elsewhere. If you sit 0452 in November 2026, you sit the 2026 syllabus (version 2), which differs: Paper 1 has 35 multiple-choice marks in 1 hour 15 minutes, not 40 marks in 1 hour 30 minutes; Topic 7 is “Accounting principles and policies”, without 7.2 Ethical considerations or 7.3 Technology and sustainability; 4.4 is “Irrecoverable debts and provision for doubtful debts”; income statements are named instead of statements of profit or loss; three-column running balance accounts are not required; Clubs and societies is 5.4 and Manufacturing accounts 5.5; and 6.3 is “Inter-firm comparison”. For this topic, the 2026 syllabus covers only trading and service businesses in 5.1 and limits drawings adjustments to goods taken by the owner for own use; for limited companies it excludes cumulative and non-cumulative preference shares, rights issues, share premium and capital redemption reserve but requires the difference between redeemable and non-redeemable preference shares (the 2027-2029 syllabus lists none of these); and for incomplete records it does not ask why businesses keep them or what their advantages are. If you sit in November 2026, work from the 2026 syllabus on the Cambridge International website.

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.

Ten questions on syllabus section 5.6 Incomplete records, Cambridge IGCSE Accounting 0452, syllabus for exams in 2027, 2028 and 2029 (version 1). All businesses are invented sole traders. Amounts are in dollars. Learn the methods first in the study guide and revision notes. Course links: hub and checklist.

Questions

1. Dalia Ashby runs a small shop and keeps only bank statements and filed invoices. (a) State three reasons why she may not keep full double entry records. [3] (b) Explain two disadvantages to her of keeping incomplete records. [4]

2. Hamid Vanterpool sells fruit and vegetables. At 1 January 2028 his balances were: equipment 5,600; inventory 2,300; trade receivables 1,450; cash 120; bank overdraft 680; trade payables 1,900; a loan repayable in 2032, 4,000. Prepare his statement of affairs at 1 January 2028 and state his capital. [4]

3. Hamid’s capital at 31 December 2028 was 6,100 and at 1 January 2028 was 2,890. During the year he took 9,000 from the bank and goods that cost 520 for private use, and he introduced 1,500 of his own money. Calculate his profit or loss for the year. [4]

4. Oldcastle Books (credit and cash sales): trade receivables were 6,200 at the start and 7,050 at the end of the year. Customers paid 58,400, debts of 380 were written off, and cash sales were 12,300. (a) Calculate credit sales. [3] (b) Calculate revenue. [1]

5. Delacroix Paints has cost of sales of 31,500 and adds a mark-up of 40%. (a) Calculate gross profit and revenue. [2] (b) Calculate the gross profit margin as a percentage to one decimal place. [2]

6. Ingleby Tools has revenue of 90,000 and a gross profit margin of 35%. Opening inventory was 7,800 and the rate of inventory turnover was 9 times. (a) Calculate cost of sales. [2] (b) Calculate average inventory, then closing inventory. [2] (c) Calculate purchases. [1]

7. Grisedale Supplies paid credit suppliers 46,900. Trade payables were 3,950 at the start and 4,350 at the end. The owner took goods that cost 600 for her own use. Opening inventory was 5,100 and closing inventory 6,300. (a) Calculate credit purchases. [2] (b) Calculate cost of sales. [3]

8. Calculate each figure for the statement of profit or loss or drawings. (a) A vehicle cost 18,000 with accumulated depreciation of 4,500; depreciation is 25% reducing balance. [2] (b) Loose tools were valued at 1,900 at the start, 700 were bought and they were valued at 1,650 at the end: the depreciation by revaluation. [2] (c) Rent received was 4,800; 400 was accrued income at the start and 500 at the end: the rent income for the year. [2] (d) The business paid 340 for the owner’s private insurance. State where this is recorded. [1]

9. Tamsin Corwin sells electrical goods. The year ended 31 December 2028.

	1 Jan 2028	31 Dec 2028
Equipment (cost 20,000) accumulated depreciation	5,000	to find
Inventory	9,200	10,400
Trade receivables	4,800	5,300
Allowance for irrecoverable debts	240	5% of receivables
Rent prepaid	nil	500
Bank	3,100	9,200
Trade payables	5,300	5,900
Wages owing	300	350

Bank receipts: credit customers 74,600; cash sales 14,900. Bank payments: suppliers 52,300; wages 9,100; rent 6,000; insurance 1,260 (300 was private); general expenses 2,740; drawings 12,000. Irrecoverable debts of 420 were written off and are not in closing receivables. She took goods costing 700. Depreciation is 20% reducing balance. Prepare the statement of profit or loss for the year. [10]

10. Using question 9, prepare the statement of financial position at 31 December 2028. Opening capital must be calculated. [8]

Answers

1. (a) Any three: no bookkeeping knowledge [1]; cost of a bookkeeper or software [1]; small business so the owner sees most transactions [1]. [3] (b) Any two, each identified and explained: no trial balance [1], so errors are not found [1]; theft or fraud is harder to spot [1] because there is no full record to compare with [1]. [4] Examiner insight: A disadvantage reads as a stronger answer when you add why it matters to the owner. Rewording the same point a second time adds little.

2.

Assets: equipment 5,600 + inventory 2,300 + trade receivables 1,450 + cash 120 = 9,470
Liabilities: overdraft 680 + trade payables 1,900 + loan 4,000 = 6,580
Capital = 9,470 - 6,580 = 2,890

Overdraft treated as a liability [1]; assets 9,470 [1]; liabilities 6,580 [1]; capital 2,890 [1]. [4] Examiner insight: Putting the bank overdraft among assets is a common slip. Layout headings help you see which side each balance belongs on.

3. Drawings = 9,000 + 520 = 9,520 [1]. Profit = 6,100 - 2,890 [1] + 9,520 [1] - 1,500 = 11,230 [1]. [4] Examiner insight: A candidate who leaves out the goods taken or the capital introduced has a different profit figure. Write each adjustment on its own line.

4. (a) 58,400 + 7,050 [1] + 380 [1] - 6,200 = 59,630 [1]. (b) 59,630 + 12,300 = 71,930 [1]. [4] Examiner insight: The debt written off is added because customers owed that value but did not pay in cash. Showing each figure lets the method be seen.

5. (a) Gross profit = 40% x 31,500 = 12,600 [1]; revenue = 31,500 + 12,600 = 44,100 [1]. (b) Gross profit margin = gross profit / revenue x 100 = 12,600 / 44,100 x 100 [1] = 28.6% [1]. [4] Examiner insight: A mark-up of 40% is not a margin of 40%. Use the syllabus formula and state it before substituting.

6. (a) Gross profit = 35% x 90,000 = 31,500 [1]; cost of sales = 90,000 - 31,500 = 58,500 [1]. (b) Average inventory = 58,500 / 9 = 6,500 [1]; closing inventory = 2 x 6,500 - 7,800 = 5,200 [1]. (c) Purchases = 58,500 + 5,200 - 7,800 = 55,900 [1]. [5] Examiner insight: Work in order, since each answer feeds the next. Rearranging the average inventory formula to find closing inventory is worth showing.

7. (a) 46,900 + 4,350 [1] - 3,950 = 47,300 [1]. (b) Purchases for cost of sales = 47,300 - 600 = 46,700 [1]; cost of sales = 5,100 + 46,700 - 6,300 [1] = 45,500 [1]. [5] Examiner insight: Goods taken by the owner belong in drawings. Show where the 600 has been deducted so the examiner can see you have not forgotten it.

8. (a) 25% x (18,000 - 4,500) = 25% x 13,500 [1] = 3,375 [1]. (b) 1,900 + 700 - 1,650 [1] = 950 [1]. (c) 4,800 - 400 + 500 [1] = 4,900 [1]. (d) Drawings [1]. [7] Examiner insight: Reducing balance uses the carrying amount, not cost. Say which base you are using and note that the opening accrued income is deducted.

9.

Tamsin Corwin
Statement of profit or loss for the year ended 31 December 2028
Revenue (75,520 + 14,900)                          90,420
Less Cost of sales
  Opening inventory                      9,200
  Purchases (52,900 - 700)              52,200
                                        61,400
  Closing inventory                     10,400       51,000
Gross profit                                         39,420
Less Expenses
  Wages (9,100 - 300 + 350)              9,150
  Rent (6,000 - 500)                     5,500
  Insurance (1,260 - 300)                  960
  General expenses                       2,740
  Irrecoverable debts                      420
  Increase in allowance (265 - 240)         25
  Depreciation (20% x 15,000)            3,000      21,795
Profit for the year                                  17,625

Credit sales = 74,600 + 5,300 + 420 - 4,800 [1] = 75,520 [1]; revenue 90,420 [1]; cost of sales 51,000 after purchases 52,900 less goods taken 700 [1]; gross profit 39,420 [1]; wages 9,150 [1]; rent 5,500 and insurance 960 [1]; irrecoverable debts 420 with allowance increase 25 [1]; depreciation 3,000 [1]; profit 17,625 [1]. [10] Examiner insight: On a long question, label each line with its working so that a correct method stays visible even if an earlier figure is wrong.

10.

Tamsin Corwin: statement of financial position at 31 December 2028
Equipment at cost 20,000 less accumulated depreciation 8,000       12,000
Inventory                                   10,400
Trade receivables 5,300 less allowance 265   5,035
Rent prepaid                                   500
Bank                                         9,200
Current assets                              25,135
Trade payables 5,900 + wages owing 350       6,250
Working capital                                                    18,885
                                                                   30,885
Opening capital (see below)                 26,260
Add Profit for the year                     17,625
                                            43,885
Less Drawings (12,000 + 700 + 300)          13,000                 30,885

Non-current assets 12,000 [1]; trade receivables net of allowance 5,035 [1]; current assets 25,135 [1]; current liabilities 6,250 [1]; opening capital = 15,000 + 9,200 + 4,560 + 3,100 - 5,600 = 26,260 [1]; profit 17,625 carried in [1]; drawings 13,000 [1]; both totals 30,885 [1]. [8] Examiner insight: If the capital total and the net assets total differ, one adjustment is missing, so go back and find it rather than forcing a balance.

Where marks are usually lost

• Leaving goods taken and private expenses out of drawings.
• Forgetting to add back a debt written off when finding credit sales.
• Using mark-up and margin as if they were the same.
• Using closing inventory instead of average inventory for turnover.
• Charging the full allowance rather than its increase.
• Calculating reducing balance depreciation on cost.

Next steps

• Revision notes and study guide
• Topic 5 practice questions
• All free 10-minute diagnostics
• Book a free trial class

Frequently asked questions

How do you find total drawings in an incomplete records question? Add cash taken from the bank or till, goods taken for own use and any private expenses paid by the business. Leaving goods taken or private expenses out of drawings is a common error.

How is a debt written off treated when finding credit sales? A debt written off reduces trade receivables without any cash coming in, so it must be added back when rebuilding credit sales. Forgetting it understates credit sales.

Which inventory figure is used for rate of inventory turnover? Rate of inventory turnover is cost of sales divided by average inventory, where average inventory is opening plus closing inventory divided by 2. Using closing inventory alone loses marks in Cambridge IGCSE Accounting (0452).

How are goods taken by the owner treated in incomplete records? Deduct the cost of the goods from purchases and add the same amount to drawings. Adding them to purchases, or forgetting drawings, are common errors.

Official syllabus

Cambridge IGCSE Accounting 0452 syllabus for 2027, 2028 and 2029 (version 1), Cambridge University Press & Assessment, section 5.6 and the Accounting ratios list.