OxfordAQA IGCSE Accounting: Adjustments for other payables, other receivables and income (9215)

This guide is aligned to the OxfordAQA International GCSE Accounting (9215) specification, version 1.2, for exams from May/June 2026. It covers the adjustments listed in section 3.3 for other payables, other receivables, income due and income received in advance, and the instruction to make entries for them in ledger accounts, in income statements and in statements of financial position. Section 3.3 falls within the content assessed by Paper 1 (content 1 to 3) and Paper 2 (content 3 to 5). All amounts on this page are in dollars.

Use it with the revision notes and the practice questions. Related pages are the guides to recording data and verification of records. The course hub is OxfordAQA IGCSE Accounting, the printable checklist tracks your progress, and the free diagnostics show where to start.

What the specification asks for

Specification wording	What you must be able to do
Adjustments: other payables	Record an expense that belongs to this year but has not been paid
Adjustments: other receivables	Record an expense paid this year that belongs to the next period
Adjustments: income due	Record income earned this year but not yet received
Adjustments: income received in advance	Record income received this year that belongs to the next period
Entries in ledger accounts	Balance the account, carry down and bring down the balance, transfer the charge
Entries in income statements and statements of financial position	Show the adjusted figure in the income statement and the balance in the right section of the statement of financial position

Section 3.3 names the accruals concept in its list of concepts. Section 3.4 repeats these four items when it describes how concepts affect financial statements. This guide covers only the four items named in your scope; the other adjustments in the section 3.3 list are separate topics.

The idea behind every adjustment

The accruals concept says that income and expenses belong to the period in which they are earned or used, not the period in which cash moves. A bank statement shows when money moved. The income statement must show what the business earned and used up in the year. The adjustments close the gap between the two.

Some books use the older names accrued expenses and prepayments. This guide uses the specification’s wording.

Adjustment	Is it an asset or a liability?	Effect on this year’s profit	Where it appears in the statement of financial position
Other payables	Liability (the business owes)	Expense goes up, profit goes down	Current liabilities
Other receivables	Asset (the business has paid early)	Expense goes down, profit goes up	Current assets
Income due	Asset (the business is owed)	Income goes up, profit goes up	Current assets
Income received in advance	Liability (the business owes service)	Income goes down, profit goes down	Current liabilities

Each of these is short term, so each sits in the current section. Other receivables and income due are separate lines because one is an expense paid early and the other is income not yet received.

Other payables

Other payables arise when the business has used something in the year but the invoice or bill has not been paid by the year end.

Ivybridge Cycle Hire, a sole trader, has a year end of 31 December 2026. The electricity account shows that 410 was owing on 1 January 2026. During the year the business paid 3,640. A bill for 520 for the last quarter arrived in January 2027 and covers use before the year end.

The charge for the year is the cash paid, less the amount owing at the start (which belongs to last year), plus the amount owing at the end: 3,640 - 410 + 520 = 3,750.

Electricity account
Debit		Credit
Bank	3,640	Balance b/d (owing at start)	410
Balance c/d (owing at end)	520	Income statement	3,750
	4,160		4,160
		Balance b/d (owing at start of 2027)	520

Follow the steps in this order. Enter the payments. Enter the opening balance on the credit side, because the account starts with a credit balance when money is owed. Insert the closing owing figure on the debit side as balance c/d. The balancing figure on the credit side is the transfer to the income statement. Finally bring the balance down on the credit side of the new period. The 520 is also shown as an other payable under current liabilities.

Other receivables

Other receivables arise when the business has paid for something that it will use in a later period.

Ivybridge Cycle Hire paid insurance of 1,260 during 2026. On 1 January 2026 there was a prepaid amount of 300 brought forward from 2025. At 31 December 2026, 340 of the amount paid relates to 2027.

Charge for the year: 1,260 + 300 - 340 = 1,220.

Insurance account
Debit		Credit
Balance b/d (paid in advance at start)	300	Income statement	1,220
Bank	1,260	Balance c/d (paid in advance at end)	340
	1,560		1,560
Balance b/d (start of 2027)	340

This time the opening balance is on the debit side, because the business has an asset at the start. The closing balance is carried down on the credit side, and the balancing figure on the credit side is the charge to the income statement.

Working out the amount from the dates

Sometimes you have to work out the prepaid amount yourself. The business pays an annual operating licence of 1,800 on 1 April 2026. The licence covers twelve months and the year end is 31 December 2026.

• Months used in 2026: 9, so the charge is 1,800 x 9/12 = 1,350.
• Months left: 3, so the other receivable is 1,800 x 3/12 = 450.
• Check: 1,350 + 450 = 1,800.

Income due

Income due arises when the business has earned income but has not yet received the cash.

Ivybridge Cycle Hire lets a storage unit to a neighbour. On 1 January 2026 the neighbour owed 350 for rent from 2025. During 2026 the business received 4,200. At 31 December 2026 the neighbour owes 700 for the last months of the year.

Income for the year: 4,200 - 350 + 700 = 4,550.

Rent receivable account
Debit		Credit
Balance b/d (due at start)	350	Bank	4,200
Income statement	4,550	Balance c/d (due at end)	700
	4,900		4,900
Balance b/d (start of 2027)	700

The opening 350 is already an asset on the debit side, and its receipt in 2026 belongs to last year. The 700 closing is an asset, so it appears as balance c/d on the credit side and as balance b/d on the debit side. The 4,550 is transferred to the income statement as income.

Income received in advance

Income received in advance arises when cash has arrived for a service the business has not yet provided.

Rowan Bay Kayaks charges for boat storage. At 1 January 2026 it held 600 received in 2025 for storage in 2026. During 2026 it received 5,100. Of that, 900 is for storage from January 2027.

Income for 2026: 5,100 + 600 - 900 = 4,800.

Storage fees account
Debit		Credit
Income statement	4,800	Balance b/d (received in advance at start)	600
Balance c/d (received in advance at end)	900	Bank	5,100
	5,700		5,700
		Balance b/d (start of 2027)	900

The 900 is a liability because the business owes the customer a service. It appears under current liabilities as income received in advance. It is not income for 2026.

The four ledger patterns side by side

Adjustment	Opening balance sits on	Closing balance carried down on	Closing balance brought down on
Other payables (expense account)	Credit	Debit	Credit
Other receivables (expense account)	Debit	Credit	Debit
Income due (income account)	Debit	Credit	Debit
Income received in advance (income account)	Credit	Debit	Credit

Always finish by checking that both sides of the account have the same total.

Effects on the financial statements

Sandmere Print Works, a sole trader, has a year end of 30 June 2026. The gross profit is 61,500. Ledger work has produced these figures:

Item	Paid or received	Adjustment	Figure for the year
Wages	24,000 paid	800 owing	24,800
Rates	4,800 paid	1,200 paid in advance	3,600
Heat and light	3,100 paid	450 owing	3,550
Insurance	1,500 paid	250 paid in advance	1,250
Rent received	3,000 received	250 due	3,250
Design fees	5,400 received	900 received in advance	4,500

Income statement extract for the year ended 30 June 2026:

Gross profit	61,500
Add rent received	3,250
Add design fees	4,500
	69,250
Less wages	24,800
Less rates	3,600
Less heat and light	3,550
Less insurance	1,250
Total expenses	33,200
Net profit	36,050

Statement of financial position extract at 30 June 2026:

Current assets
Other receivables (rates 1,200 and insurance 250)	1,450
Income due (rent)	250
Current liabilities
Other payables (wages 800 and heat and light 450)	1,250
Income received in advance (design fees)	900

Each adjustment appears twice: once in the income statement and once as a balance in the statement of financial position. If you have changed the profit but have no balance to show, or the reverse, something is missing.

Correcting a draft profit

A draft profit is sometimes prepared from cash records before the year-end adjustments. Podmore Laundry is in its first year, so there are no opening balances. The draft net profit is 18,450. The adjustments not yet made are wages owing 640, rent paid in advance 1,100, commission due 210 and rent received in advance 480.

Adjustment	Effect on profit	Running profit
Draft profit		18,450
Wages owing	- 640	17,810
Rent paid in advance	+ 1,100	18,910
Commission due	+ 210	19,120
Rent received in advance	- 480	18,640

Adjusted net profit is 18,640. The net change is +190, from -640 + 1,100 + 210 - 480.

Common errors

• Adding the opening balance to the payments in an expense account with other payables. An opening amount owing is last year’s cost, so it is taken off the cash paid.
• Putting a balance brought down on the wrong side. Check whether the item is an asset (debit) or a liability (credit).
• Treating income received in advance as income for the year. It is a liability until the service is given.
• Listing other payables as non-current liabilities, or other receivables among non-current assets. All four items are short term.
• Applying the fraction to the wrong period. Count the months used in the year, then the months left, and check that they add to the full period.
• Changing the ledger but leaving the statement figure alone, or the other way round.

Next steps

Work through the practice questions and keep the revision notes to hand. The diagnostics are a quick way to check what you still need to revise.

Frequently asked questions

What are other payables? Other payables arise when a business has used something in the year but has not yet paid for it, such as electricity owing at the year end. They are current liabilities.

What are other receivables? Other receivables arise when a business has paid for something it will use in a later period, such as insurance paid in advance. They are current assets.

How do you work out a prepaid amount from dates? Count the months used in the year and the months left. For example, an annual licence of 1,800 with 9 months used in the year gives a charge of 1,350 and an other receivable of 450.

How do you calculate income for the year when some was received in advance? Income = cash received + amount received in advance at the start − amount received in advance at the end. The closing amount is a liability, because the business still owes the customer a service.

How does each adjustment affect the financial statements? Each adjustment appears twice: once in the income statement, at the adjusted expense or income figure, and once as a current asset or current liability in the statement of financial position.

Official syllabus

OxfordAQA International GCSE Accounting (9215) specification, version 1.2, for teaching from September 2024 and exams from May/June 2026, published by OxfordAQA. Subject content section 3.3 (Development of the accounting model), with the related list in section 3.4.