IGCSE Accounting: Other payables and receivables, irrecoverable debts (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 says “recovery of debts written off” where the 2027-2029 syllabus says “irrecoverable debts recovered”, asks for simple inventory valuation statements, and does not separately list choosing a depreciation method for each type of non-current asset, journal entries for purchasing a non-current asset, or calculating the profit or loss on disposal. 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.

These questions cover sections 4.3 (Other payables and other receivables) and 4.4 (Irrecoverable debts and allowance for irrecoverable debts) of the Cambridge IGCSE Accounting 0452 syllabus for exams in 2027, 2028 and 2029 (version 1). Calculators may be used in the examination. Learn the method first from the study guide and the revision notes. Also see the Cambridge IGCSE Accounting hub, the printable checklist and the free diagnostics.

Questions

1. Explain why a business matches costs and revenues to the period they belong to, rather than recording cash paid and received. [3]

2. Ravenscar Books has a 30 September year end. Give the year-end journal entry for each item. [4]

• Electricity of $175 has been used but not billed.
• Insurance of $960 was paid on 1 July 2028 for twelve months.
• Consultancy fees of $90 are earned but unpaid.
• Rent of $300 was received for the next quarter.

3. Stavely Tiles has a 31 August year end. Prepare the rates account for the year, showing the transfer to the statement of profit or loss and the balance brought down. [5]

• On 1 September 2027, $400 of rates was prepaid.
• On 1 October 2027 the business paid $2,400 by bank for six months to 31 March 2028.
• On 1 April 2028 it paid $2,640 by bank for six months to 30 September 2028.

4. Sablewood Storage has a 30 April year end. On 1 May 2027 a customer owed $240 of storage fees from the previous year. During the year $3,780 was received, including $360 for the following year.

(a) Prepare the storage fees received account, bringing down the balance. [5] (b) Give the journal entry for the closing balance. [1]

5. Underhill Garden Centre’s draft profit for the year ended 31 March 2029 is $31,400. Calculate the corrected profit after these items. [5]

• Wages of $520 are owing but unrecorded.
• Commission of $180 is earned but unrecorded.
• The insurance expense includes $310 for next year.
• Rent received includes $400 for next year.

6. Teasdale Audio has a 31 October year end.

(a) State what is meant by an irrecoverable debt. [1] (b) On 14 August 2028 D Okpara, who owes $460, is declared bankrupt. Give the journal entry. [2] (c) K Zielinski’s debt of $275 is written off on 22 October 2028. Prepare the irrecoverable debts account for the year, including the transfer. [3]

7. N Sandoval owed Teasdale Audio $390, written off in the year ended 31 October 2027. On 18 September 2028 she paid $390 by cheque.

(a) Give the journal entries to record the recovery. [3] (b) Prepare her account for the year. [2] (c) State where the recovery appears in the statement of profit or loss. [1]

8. Yamada Hardware has a 30 November year end. Trade receivables are $26,800 before H Sorensen’s debt of $800 is written off. The allowance is to be 4% of the remaining trade receivables. The opening allowance is $920.

(a) Calculate the allowance required. [2] (b) Calculate the change in the allowance and give the journal entry. [2] (c) State the net trade receivables figure for the statement of financial position. [2]

9. Kovac Pet Supplies has a 30 April year end and a 6% allowance. At 30 April 2028 it creates its first allowance, with trade receivables of $21,500 after write-offs. At 30 April 2029 trade receivables after write-offs are $17,000.

(a) Prepare the allowance account for both years, bringing down the closing balance. [5] (b) Explain why the business keeps an allowance. [2]

10. Quarmby Stationers has a draft profit of $48,260 for the year ended 31 March 2029, before the following items.

1. Trade receivables are $39,340 before any write-offs.

J Nordin ($900) and P Rosales ($440) are to be written off. 3. A Petrov paid $520 into the bank on 5 January 2029. It was written off in 2027, and nothing has been recorded. 4. The opening allowance is $900. It is to be 3% of remaining trade receivables. 5. Electricity of $230 is owing. 6. Insurance paid includes $360 for next year.

(a) Give the journal entries for items 2 and 3. [4] (b) Calculate the allowance required and the change in it. [3] (c) Prepare a statement showing the corrected profit. [5]

Answers

1. Profit is income earned less the costs of earning it in the period [1]. Cash paid or received can belong to another period, such as insurance paid ahead [1]. Using cash would misstate profit and mislead users [1]. [3] Examiner insight: A bare definition of matching is less likely to gain credit than a statement of what goes wrong when cash is used.

2. Electricity: Dr Electricity 175, Cr Other payables 175 [1]. Insurance: nine months are prepaid, 9/12 x 960 = 720, so Dr Other receivables 720, Cr Insurance 720 [1]. Fees: Dr Other receivables 90, Cr Consultancy fees 90 [1]. Rent: Dr Rent received 300, Cr Other payables 300 [1]. [4] Examiner insight: Name both the debit and the credit account in every journal.

3. Closing prepayment: 1/6 x 2,640 = 440 [1].

Rates account ($)
Date      Details                Amount  Date      Details                Amount
1 Sep 27  Balance b/d               400  31 Aug 28 Profit or loss          5,000
1 Oct 27  Bank                    2,400  31 Aug 28 Balance c/d               440
1 Apr 28  Bank                    2,640
                                 ------                                   ------
                                  5,440                                    5,440
                                 ======                                   ======
1 Sep 28  Balance b/d               440

Opening balance and both payments [1]; balance c/d 440 on the credit side [1]; transfer 5,000 [1]; totals 5,440 and the balance brought down as a debit [1]. [5] Examiner insight: Find the closing balance from the facts first. The transfer is then the balancing figure.

4. (a) Income = 3,780 - 240 - 360 = 3,180.

Storage fees received account ($)
Date      Details                Amount  Date      Details                Amount
1 May 27  Balance b/d               240  Various   Bank                    3,780
30 Apr 28 Profit or loss          3,180
30 Apr 28 Balance c/d               360
                                 ------                                   ------
                                  3,780                                    3,780
                                 ======                                   ======
                                         1 May 28  Balance b/d               360

Opening 240 [1]; bank 3,780 [1]; balance c/d 360 on the debit side [1]; transfer 3,180 [1]; balance b/d 360 on the credit side [1]. (b) Dr Storage fees received 360, Cr Other payables 360 [1]. [6] Examiner insight: An opening debit on an income account is accrued income, which reduces this year’s income.

5. Wages -520 [1]; commission +180 [1]; insurance +310 [1]; rent in advance -400 [1]. Corrected profit: 31,400 - 520 + 180 + 310 - 400 = $30,970 [1]. [5] Examiner insight: Label each adjustment as raising or lowering profit, so your treatment is clear.

6. (a) Money due from a credit customer that the business has decided it will never receive [1]. (b) Dr Irrecoverable debts 460 [1]; Cr D Okpara 460 [1]. (c)

Irrecoverable debts account ($)
Date      Details                Amount  Date      Details                Amount
14 Aug 28 D Okpara                  460  31 Oct 28 Profit or loss            735
22 Oct 28 K Zielinski               275
                                 ------                                   ------
                                    735                                      735
                                 ======                                   ======

Both write-offs [1]; transfer 735 [1]; balanced totals [1]. [6] Examiner insight: Debit Irrecoverable debts, not Sales: the sale was genuine revenue when made.

7. (a) Dr N Sandoval 390 [1]; Cr Irrecoverable debts recovered 390 [1]. Dr Bank 390, Cr N Sandoval 390 [1]. (b)

N Sandoval account ($)
Date      Details                Amount  Date      Details                Amount
18 Sep 28 Debts recovered           390  18 Sep 28 Bank                      390
                                 ------                                   ------
                                    390                                      390
                                 ======                                   ======

Reinstating debit [1]; bank credit and balanced account [1]. (c) As income (irrecoverable debts recovered) [1]. [6] Examiner insight: Reinstating the customer first makes the account tell the full story.

8. (a) Remaining trade receivables 26,800 - 800 = 26,000 [1]; 4% x 26,000 = $1,040 [1]. (b) Increase 1,040 - 920 = $120 [1]; Dr Statement of profit or loss 120, Cr Allowance for irrecoverable debts 120 [1]. (c) Trade receivables 26,000 less allowance 1,040 [1] = $24,960 [1]. [6] Examiner insight: Apply the percentage to the receivables left after the write-off, and charge only the 120 increase.

9. (a) Allowances: 6% x 21,500 = 1,290 and 6% x 17,000 = 1,020, so the decrease is 270.

Allowance for irrecoverable debts account ($)
Date      Details                Amount  Date      Details                Amount
30 Apr 28 Balance c/d             1,290  30 Apr 28 Profit or loss          1,290
                                 ------                                   ------
                                  1,290                                    1,290
                                 ======                                   ======
30 Apr 29 Profit or loss            270  1 May 28  Balance b/d             1,290
30 Apr 29 Balance c/d             1,020
                                 ------                                   ------
                                  1,290                                    1,290
                                 ======                                   ======
                                         1 May 29  Balance b/d             1,020

Creation 1,290 [1]; balance carried and brought down 1,290 [1]; decrease 270 [1]; balance c/d 1,020 [1]; balance b/d 1,020 [1]. (b) Some trade receivables will probably not be paid [1], so receivables should not be overstated and the cost belongs to the year of sale [1]. [7] Examiner insight: A decrease goes on the debit side of the allowance account and is income.

10. (a) Dr Irrecoverable debts 1,340, Cr J Nordin 900 and Cr P Rosales 440 [2]. Dr A Petrov 520, Cr Irrecoverable debts recovered 520 [1]; Dr Bank 520, Cr A Petrov 520 [1]. (b) Remaining trade receivables 39,340 - 1,340 = 38,000 [1]; allowance 3% x 38,000 = 1,140 [1]; increase 1,140 - 900 = $240 [1]. (c)

	$
Draft profit	48,260
Less irrecoverable debts	(1,340)
Add irrecoverable debts recovered	520
Less increase in allowance	(240)
Less electricity owing	(230)
Add insurance prepaid	360
Corrected profit	47,330

Debts and recovery [1]; allowance [1]; electricity [1]; insurance [1]; corrected profit [1]. [12] Examiner insight: Start from the draft profit and treat every adjustment in the same layout. Include only the allowance increase.

Where marks are usually lost

• Using cash paid or received as the expense or income.
• Showing prepayments or accrued incomes as credit balances.
• Calculating the allowance before writing off irrecoverable debts.
• Charging the whole allowance rather than the change.
• Treating a fall in the allowance as an expense.
• Omitting the reinstating entry for a recovered debt.

Next steps

• Review the revision notes and study guide
• Use the hub and checklist
• Try all the free diagnostics
• Book a free trial class

Frequently asked questions

Is the cash paid for an expense the amount in the statement of profit or loss? No. The expense for the year is the cash paid adjusted for amounts owing and prepaid at the start and end of the year. Using cash paid or received as the expense or income is a common error in Cambridge IGCSE Accounting (0452) questions.

Are prepayments and accrued income debit or credit balances? Prepaid expenses and accrued income are amounts owed to the business, so they are brought down as debit balances and shown as other receivables. Accrued expenses and income received in advance are credit balances and other payables.

In what order are irrecoverable debts and the allowance calculated? Write off irrecoverable debts first, then calculate the allowance on the remaining trade receivables and charge only the change in the allowance. A fall in the allowance is credited to the statement of profit or loss, not treated as an expense.

How do you record an irrecoverable debt that is later recovered? First reinstate the debt in the customer’s account, then record the cash received from the customer. Leaving out the reinstating entry is a common way to lose marks.

Official syllabus

Cambridge IGCSE Accounting 0452 syllabus for exams in 2027, 2028 and 2029 (version 1), published by Cambridge University Press and Assessment (Cambridge International), sections 4.3 and 4.4.