OxfordAQA A-Level Accounting: The double entry model (9615) – 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 3.1.3 The double entry model of the OxfordAQA International AS and A-level Accounting (9615) specification, Version 1.2, for International AS exams May/June 2025 onwards and International A-level exams May/June 2026 onwards. It is International AS content, listed for Papers 1 and 2. Amounts are in dollars; businesses are invented.

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Questions

1. State the book of prime entry used for each source document: (a) a sales invoice sent to a credit customer; (b) a credit note received from a supplier; (c) a journal voucher authorising an irrecoverable debt write-off; (d) a bank statement showing a direct debit. [4]

2. A hairdressing salon has these items. Classify each as capital expenditure, revenue expenditure, capital income or revenue income: (a) new styling chairs; (b) commission received for selling hair products; (c) proceeds from selling an old dryer; (d) repairs to a leaking roof. [4]

3. Lantern Bay Ceramics sells goods with a list price of 6,400 to Ferrand Hotels on credit, with 25% trade discount and 2% cash discount for payment within 10 days. Ferrand Hotels pays within 10 days.

(a) Calculate the invoice value. [1] (b) Calculate the discount allowed and the amount received. [2] (c) State the double entry for the receipt. [2]

4. Tobias Wren, an interior designer, had cash 145 and a bank overdraft of 620 on 1 June. 3 June: client Selby paid 2,000 by cheque less 3% cash discount. 10 June: paid supplier Kelso 1,500 by cheque less 2% cash discount. 14 June: cash fees 380. 22 June: telephone direct debit 115. 27 June: travelling expenses 90 cash. Prepare the three column cash book for June, balance it, and state how the discount totals are posted. [6]

5. On 1 February 2026 credit customer P. Lindqvist, owing Lantern Bay Ceramics 1,080, became bankrupt. 25% of the debt was received by cheque and the rest was written off. In December 2026 Lindqvist unexpectedly paid the amount written off.

(a) Prepare journal entries for 1 February 2026. [2] (b) Prepare journal entries for the December 2026 recovery. [2]

6. Lantern Bay Ceramics owes Mireille Clay Supplies 2,350 and Mireille Clay Supplies owes Lantern Bay 1,140.

(a) State the journal entry for the contra. [2] (b) Calculate the balance remaining and say who owes it. [1]

7. At 31 December 2025 trade receivables were 32,500 before writing off an irrecoverable debt of 1,500. The provision for doubtful debts is to be 5% of receivables. The provision at 1 January 2025 was 1,800.

(a) Calculate the provision required. [2] (b) State the income statement entry. [2] (c) State the trade receivables figure in the statement of financial position. [1]

8. Tobias Wren (year end 31 March) bought a car on 1 April 2023 for 28,000, depreciated at 30% reducing balance: a full year’s charge in the year of purchase, none in the year of sale. He sold it on 15 June 2025 for 13,000.

(a) Calculate the depreciation for each year ended 31 March 2024 and 2025. [2] (b) Prepare the disposal account. [4] (c) Calculate the annual straight line charge if a five-year life and residual value of 3,000 had been used, and explain why reducing balance suits a car. [2]

9. For Tobias Wren’s year ended 31 March 2026, state each income statement figure and the statement of financial position entry with its subheading:

(a) Rent is 1,100 a month; 14,300 was paid in the year. [2] (b) Advertising of 2,740 was paid; a 360 invoice for March is unpaid. [2] (c) Fees received were 64,200, including 1,500 paid by a client for work in April 2026. [2]

10. Lantern Bay Ceramics, a trading business, has this trial balance at 31 December 2025.

Account	Dr	Cr
Revenue / Sales returns	3,100	212,400
Purchases / Purchases returns	118,600	2,200
Inventory 1 January 2025	14,300
Wages	38,900
Heat and light	5,260
Insurance	3,480
Rent received		4,800
Discounts allowed	940
Kiln and equipment: cost / accumulated depreciation	48,000	12,000
Trade receivables / provision for doubtful debts	16,750	400
Trade payables		11,380
Bank overdraft		2,140
Cash	330
Loan (repayable 2030)		12,000
Drawings / Capital	21,000	13,340
Totals	270,660	270,660

Additional information: closing inventory 15,900; heat and light owing 440; insurance prepaid 580; rent received includes 400 for January 2026; depreciation 12.5% straight line on cost; write off an irrecoverable debt of 750, then set the provision at 2% of remaining receivables.

Prepare the income statement for the year ended 31 December 2025 and the statement of financial position at that date, with subheadings. [15]

11. A business recorded a 9,000 warehouse extension as repairs. Explain the difference between capital and revenue expenditure, and state the effect of this error on profit for the year and on the statement of financial position. Ignore depreciation. [4]

Answers

1. (a) Sales journal [1] (b) Purchases returns journal [1] (c) General journal [1] (d) Three column cash book [1] [4] Examiner insight: Write the full name of the book; “journal” alone does not show which one you mean.

2. (a) Capital expenditure [1] (b) Revenue income [1] (c) Capital income [1] (d) Revenue expenditure: it restores rather than improves the roof [1] [4] Examiner insight: Repairs and maintenance are revenue expenditure unless the work improves or extends the asset; say which applies.

3. (a) 6,400 × 75% = 4,800 [1] (b) Discount allowed 4,800 × 2% = 96 [1]; amount received 4,800 − 96 = 4,704 [1] (c) Debit Bank 4,704 and Discounts allowed 96 [1]; credit Ferrand Hotels 4,800 [1] Examiner insight: Cash discount is calculated on the invoice value after trade discount, never on list price.

4.

Dr                    Disc  Cash   Bank | Cr                    Disc  Cash   Bank
1 Jun  Balance b/d           145        | 1 Jun  Balance b/d                  620
3 Jun  Selby            60        1,940 | 10 Jun Kelso            30        1,470
14 Jun Fees                  380        | 22 Jun Telephone                    115
30 Jun Balance c/d                  265 | 27 Jun Travelling             90
                                        | 30 Jun Balance c/d           435
                        60   525  2,205 |                         30   525  2,205
1 Jul  Balance b/d           435        | 1 Jul  Balance b/d                  265

Selby: discount 60, bank 1,940 [1]. Kelso: discount 30, bank 1,470 [1]. Fees, telephone and travelling correctly placed [1]. Cash 435 b/d on the debit side [1]. Overdraft 265 b/d on the credit side [1]. Debit Discounts allowed 60; credit Discounts received 30 [1] [6] Examiner insight: An overdraft is brought down on the credit side; a debit balance would show a bank asset that does not exist.

5. (a) Debit Bank 270, debit Irrecoverable debts 810 [1]; credit P. Lindqvist 1,080 [1] (b) Debit P. Lindqvist 810, credit Irrecoverable debts recovered 810 [1]; debit Bank 810, credit P. Lindqvist 810 [1] Examiner insight: Reinstate the debt before recording the cash, so the customer’s account shows the payment.

6. (a) Debit Mireille Clay Supplies (payables ledger) 1,140 [1]; credit Mireille Clay Supplies (receivables ledger) 1,140 [1] (b) Lantern Bay still owes 1,210 [1] Examiner insight: The contra is always for the smaller of the two balances; name the ledger on each side.

7. (a) Receivables 32,500 − 1,500 = 31,000 [1]; provision 5% × 31,000 = 1,550 [1] (b) Decrease of 1,800 − 1,550 = 250 [1], shown as income added to gross profit [1] (c) 31,000 − 1,550 = 29,450 [1] Examiner insight: Only the change in the provision reaches the income statement; the full new provision belongs in the statement of financial position.

8. (a) 2024: 30% × 28,000 = 8,400; 2025: 30% × 19,600 = 5,880 [1] [1] (b)

Disposal account
Dr Car (cost)        28,000 | Cr Accumulated depreciation  14,280
                            | Cr Bank                      13,000
                            | Cr Income statement (loss)      720
                     28,000 |                              28,000

Cost transferred [1]; accumulated depreciation 14,280 [1]; proceeds 13,000 [1]; loss 720 [1] (c) (28,000 − 3,000) ÷ 5 = 5,000 a year [1]. A car loses most value early, so larger early charges match cost to benefit [1] Examiner insight: Label the balancing figure as a loss or profit; an unlabelled 720 does not show which way it goes.

9. (a) 14,300 ÷ 1,100 = 13 months paid. Expense 13,200 [1]; other receivable 1,100 under current assets [1] (b) Expense 2,740 + 360 = 3,100 [1]; other payable 360 under current liabilities [1] (c) Fees 64,200 − 1,500 = 62,700 [1]; income received in advance 1,500 under current liabilities [1] Examiner insight: Each adjustment has two halves; give both.

10. Workings: depreciation 12.5% × 48,000 = 6,000. Receivables 16,750 − 750 = 16,000; provision 2% = 320, a decrease of 80.

Income statement for the year ended 31 December 2025
Revenue (212,400 - 3,100)                                209,300
Cost of sales (14,300 + 118,600 - 2,200 - 15,900)      (114,800)
Gross profit                                              94,500
Rent received (4,800 - 400)                                4,400
Decrease in provision for doubtful debts                      80
                                                          98,980
Expenses: wages 38,900; heat and light 5,700;
insurance 2,900; discounts allowed 940;
depreciation 6,000; irrecoverable debts 750              (55,190)
Profit for the year                                       43,790

Statement of financial position at 31 December 2025
Non-current assets
  Kiln and equipment: cost 48,000 less 18,000             30,000
Current assets
  Inventory 15,900; trade receivables 16,000
  less 320 = 15,680; other receivables 580; cash 330     32,490
Current liabilities
  Trade payables 11,380; other payables 440; income
  received in advance 400; bank overdraft 2,140          (14,360)
Non-current liabilities
  Loan                                                   (12,000)
Net assets                                                36,130
Equity
  Capital 13,340 + profit 43,790 - drawings 21,000        36,130

Revenue [1]; cost of sales [1]; gross profit [1]; rent 4,400 and provision decrease 80 as income [1]; heat and light and insurance adjusted [1]; depreciation [1]; irrecoverable debts with other expenses [1]; profit 43,790 [1]. Non-current assets [1]; receivables 15,680 [1]; current assets 32,490 [1]; current liabilities 14,360 [1]; loan as non-current liability [1]; equity 36,130 [1]; five subheadings, net assets equal equity [1] [15] Examiner insight: Show each adjusted figure’s working so an arithmetic slip does not hide correct method.

11. Capital expenditure buys or improves a non-current asset, benefiting more than one period [1]. Revenue expenditure is running costs and maintenance, charged against profit [1]. Profit for the year is understated by 9,000 [1]. Non-current assets (and so net assets and equity) are understated by 9,000 [1] [4] Examiner insight: State the direction (understated or overstated) and the amount for both statements; “profit is wrong” alone earns little.

Where marks are usually lost

• Calculating cash discount on list price instead of on the invoice value after trade discount.
• Bringing an overdraft down on the debit side of the cash book.
• Recording a recovered debt without first reinstating the customer’s account.
• Charging the full provision for doubtful debts to the income statement.
• Using cost instead of carrying amount for the second year of reducing balance depreciation.
• Missing subheadings, or putting income received in advance under current assets.

Next steps

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Official syllabus

OxfordAQA International AS and A-level Accounting (9615) specification, Version 1.2, for International AS exams May/June 2025 onwards and International A-level exams May/June 2026 onwards, published by OxfordAQA. Section 3.1.3 The double entry model.